Interest rates for second quarter

Changes to unpaid source deductions, overdue taxes, insufficient instalments
|payroll-reporter.com|Last Updated: 03/21/2011

The Canada Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1, 2011, to June 30, 2011.

Income tax

•The interest rate charged on overdue taxes, Canada Pension Plan contributions and employment insurance premiums will be five per cent.
•The interest rate to be paid on corporate taxpayers overpayments will be one per cent.
•The interest rate to be paid on non corporate taxpayers overpayments will be three per cent.
•The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be one per cent.

Other taxes, duties or charges

The interest rates on overdue and overpaid remittances are as follows:

Tax, duty, or other charges

Overdue remittances

Overpaid remittances

Corporate taxpayers

Non corporate taxpayers

Goods and Services Tax (GST)

5%

1%

3%

Harmonized Sales Tax (HST)

5%

1%

3%

Air Travellers Security Charge

5%

1%

3%

Excise Tax (non GST/HST

5%

1%

3%

Excise Duty (except brewer licensees)

5%

1%

3%

Excise Duty (brewer licensees)

3%

N/A

N/A

Softwood Lumber Products Export Charge

5%

1%

3%

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