News release

Revenue Canada interest rates for the first calendar quarter

OTTAWA, December 8, 1998...Revenue Canada today announced the prescribed interest rates that will apply to amounts owed to Revenue Canada, and to amounts the Department owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from January 1, 1999, to March 31, 1999.

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums will be 9%.
• The interest rate paid on overpayments will be 7%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 5%.

Other taxes

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

Goods and services tax: 4.8667%

Harmonized sales tax: 4.8667%

Federal sales tax: 4.8667%

Air transportation tax: 4.8667%

Excise taxes: 4.8667%

Excise duty: 7%