CRA: Interest Rates for the Second Calendar Quarter

OTTAWA - The Canada Revenue Agency (CRA) announced the prescribed annual interest rates that will apply to amounts owed to the CRA and to amounts the CRA owes to individuals and corporations. These rates are calculated quarterly according to applicable legislation. The rates indicated below will be in effect from April 1, 2010 to June 30, 2010.

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 Overpaid
remittances remittances

- Goods and Services Tax (GST) 5% 3%
- Harmonized Sales Tax 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%