Five per cent for overdue taxes, CPP contributions and EI premiums
The prescribed annual interest rates that will apply to any amounts owed to the Canada Revenue Agency (CRA) and to any amounts the CRA owes to individuals and corporations have been released.
These rates are calculated quarterly in accordance with applicable legislation and will be in effect from Jan. 1, 2011, to March 31, 2011.
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.
The interest rates on overdue and overpaid remittances are as follows:
Overdue remittances Overpaid remittances: Corporate Overpaid remittances: Non-corporate taxpayers Goods and services tax 5% 1% 3% Harmonized sales tax 5% 1% 3% Air travellers security charge 5% 1% 3% Excise tax 5% 1% 3% Excise duty (except brewer licensees) 5% 1% 3% Excise duty (brewer licencees) 5% N/A N/A Softwood lumber products export charge 5% 1% 3%
taxpayers
More information on the prescribed interest rates can be found at www.cra.gc.ca/interestrates.
