The Canada Revenue Agency (CRA) has announced the recommended annual interest rates for the first quarter (Q1) on December 15, 2017. It will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. The interest rate to be paid on corporate taxpayer overpayments is 1%; in case of individual taxpayer, the rate is 3%. Also, the interest rate for corporate taxpayers’ pertinent loans or indebtedness is 4.98%. Again, The 5% interest rate is charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums. The interest rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans will be 1%. These effects from January 1, 2018, to March 31, 2018.
According to the announcement, 5% excise duty is imposed in case of softwood lumber products.
The CRA will officially disclose the prescribed interest rate for second quarter (Q2) in March.
