The Canada Revenue Agency today 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 October 1 to December 31, 2009. Income tax
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%.
- The interest rate paid on overpayments will be 3%.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 1%.
The interest rate on overdue and overpaid remittances for the following taxes will be:
- The interest rate on overdue GST remittances is 5%
- The interest rate on overpaid GST remittances is 3%
- The interest rate on loans between spouses is 1%