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CRA Release Fourth Quarter Interest Rates


Richard Weber on October 22, 2014 in Advice for Business Owners

You would expect an accounting firm to encourage the paying of taxes in a timely manner, but really, it just makes good financial sense to avoid paying interest on outstanding monetary obligations. SB Partners can help if you need assistance in planning for your tax payments.

The prescribed annual interest rates for the last quarter were released in September by the Canada Revenue Agency (CRA). These rates apply to money owed to the CRA by individuals and corporations (with the same rates being applicable to money owed by the CRA).

Effective October 1 to December 31, 2014, the income tax rates are:

  • 5% on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums
  • 1% on corporate taxpayer overpayments
  • 3% on non-corporate taxpayer overpayments
  • 1% on taxable benefits for employees and shareholders from interest free and low-interest loans
  • 4.94% for corporate taxpayers’ pertinent loans or indebtedness.

Interest rates on other taxes, duties or charges are outlined in the following chart:

 

Tax, duty, or other charges

Overdue remittances

Overpaid remittances – Corporate taxpayers

Overpaid remittances – 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 (amounts due after June 30, 2003)

5%

1%

3%

Excise duty except brewer licensees (amounts due before July 1, 2003)

3%

N/A

N/A

Excise duty (brewer licensees)

3%

N/A

N/A

Softwood lumber products export charge

5%

1%

3%

For more information, visit: http://news.gc.ca/web/article-en.do?mthd=index&crtr.page=1&nid=883979&utm_source=mediaroom&utm_medium=eml