Interest rates for the first calendar quarter

The following news release is available on the Canada Revenue Agency web site.

Ottawa, Ontario, December 3, 2009 …The Canada Revenue Agency (CRA) today 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 January 1, 2010 to March 31, 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 remittances | Overpaid 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%

For information on the prescribed interest rates of other calendar quarters, go to the www.cra.gc.ca/interestrates Web page.