Interest Rate Changes

Interest rates for the third calendar quarter have been announced by Canada Revenue Agency and there are no changes from the previous quarter. These prescribed annual interest rates 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 July1, 2011 to September 30,2011.

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%.
• The interest rate to be paid on corporate taxpayers overpayments will be 1%.
• The interest rate to be paid on non corporate taxpayers 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 rates on overdue and overpaid remittances are as follows:

Old Age Security and Canada Pension Plan rates for the third quarter are not yet available ñ stay tuned!

ADDITIONAL EDUCATIONAL RESOURES: Essential Tax Facts: 2012 Edition