Prescribed interest rates
On September 16, 2015, the CRA announced the prescribed interest rates that apply to amounts owed to the CRA and to amounts the CRA owes to individuals and corporations for the current calendar quarter. The amounts are subject to change every calendar quarter. The following rates are in effect from October 1, 2015 to December 31, 2015, and remain unchanged from the last several quarters.
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums is 5%, compounded daily.
- The interest rate paid on late CRA refunds paid to corporations is 1%, compounded daily.
- The interest rate paid on late CRA refunds paid to other taxpayers is 3%, compounded daily.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 1%.