Last updated: September 16 2009

Fourth Quarter 2009 - Prescribed Rates

The Canada Revenue Agency 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, 2009, to December 31, 2009 and are unchanged from the last two quarters.

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%.

Other taxes

The interest rate on overdue and overpaid remittances for the following taxes will be:

Tax and Duty	Overdue remittances	Overpaid remittances
GST	5%	3%
HST	5%	3%
Air Travellers Security Charge	5%	3%
Excise Tax (non GST)	5%	3%
Excise Duty (except Brewer Licensees)	5%	3%
Excise Duty (Brewer Licensees)	3%	N/A
Softwood Lumber Products Export Charge	5%	3%

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Educational Resource: For more information on tax planning provisions and compliance requirements subscribe to The Knowledge Bureau's online tax reference for taxpayers, financial advisors and their clients: EverGreen Explanatory Notes.

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Fourth Quarter 2009 - Prescribed Rates

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