CRA announces Q1 interest rates

CRA has announced the prescribed annual interest rates that will apply to any amounts owed to CRA, and to any amounts the CRA owes to individuals and corporations. These rates will be in effect from January 1, 2016 to March 31, 2016.

There have been no changes to the prescribed interest rates since last quarter, except for the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

Income tax

The interest rate charged on overdue taxes, CPP contributions, and employment insurance premiums will be 5%.
The interest rate to be paid on corporate taxpayer overpayments will be 1%.
The interest rate to be paid on non-corporate taxpayer 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%.
Change: The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.41%.

Other taxes, duties, or charges

Here’s a look at interest rates on overdue and overpaid remittances.

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%

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.

There have been no changes to the prescribed interest rates since last quarter, except for the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

Income tax

The interest rate charged on overdue taxes, CPP contributions, and employment insurance premiums will be 5%.
The interest rate to be paid on corporate taxpayer overpayments will be 1%.
The interest rate to be paid on non-corporate taxpayer 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%.
Change: The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.41%.

Other taxes, duties, or charges

Here’s a look at interest rates on overdue and overpaid remittances.

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%

Income tax

Other taxes, duties, or charges

Staff

Income tax

Other taxes, duties, or charges

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