Prescribed interest rates

The CRA recently announced the prescribed interest rates that apply in the third quarter of 2018. The rates remain the same as those that apply in the second quarter.

• The annual interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums is 6%, compounded daily.
• The interest rate paid on late refunds paid by the CRA to corporations is 2%, compounded daily.
• The interest rate paid on late refunds paid by the CRA to other taxpayers is 4%, compounded daily.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 2%.