CRA Announces Interest Rates For The First Quarter

---

I have helped hundreds of people successfully navigate from the US to Canada. If you're thinking of moving or retiring to Canada contact me today to chat about your plans.

I can be reached via email at phil@philhogan.com, by phone at 250-661-9417 or through my contact page here.

I look forward to speaking to you soon.

Phil Hogan, CPA, CA, CPA (CO)
Cross-Border Tax and Investment Specialist

---

CRA has announced their interest rates for the first quarter of 2010. The rates include both the penalty rates for overdue balances as well as the prescribed rates for employee and shareholder loans:

• 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%.

They’ve also released the rates for overdue taxes and overpayment rates for the following items:

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%

You can read more at CRA here.