Third Quarter Interest Rates

The Canada Revenue Agency has 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 July1, 2008, to September 30, 2008.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums will be 7%.
• The interest rate paid on overpayments will be 5%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 3%.

Each of these rates represents a 1% drop from the rates in effect for the last two quarters.

Other taxes

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