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Prescribed Interest Rates—2012
1
Jan. to Mar.
Apr. to Jun.Jul. to Sept.Oct. to Dec.
(Q1)
(Q2)
(Q3)
(Q4)
Federal
2
Base rate
1.0
1.0
1.0
1.0
Tax debts
5.0
5.0
5.0
5.0
Tax refunds – corporations
1.0
1.0
1.0
1.0
Tax refunds – other taxpayers
3.0
3.0
3.0
3.0
Alberta
3
Tax debts
4.5
4.5
4.5
4.5
Tax refunds
0.5
0.5
0.5
0.5
Ontario
4
Tax debts
6.0
6.0
6.0
6.0
Tax refunds
0.0
0.0
0.0
0.0
Québec
5
Tax debts
6.0
6.0
6.0
6.0
Tax refunds
1.5
1.5
1.3
1.3
Notes
(1) The rates in these tables do not apply to underpaid and overpaid capital taxes. For the
applicable prescribed interest rates for capital tax debts and refunds see the tables
“Prescribed Interest Rates for Capital Taxes—2012” and “Prescribed Interest Rates for
Capital Taxes—2013”.
(2) The federal base rate applies to taxable benefits for employees and shareholders, low-
interest loans and other related-party transactions. The rate for tax debts applies to all
tax debts, penalties, insufficient instalments, and unpaid employee income tax, Canada
Pension Plan contributions and Employment Insurance premiums.
All provinces other than Alberta, Ontario (for amounts related to taxation years ending
before 2009) and Québec use the federal interest rates for corporate income tax refunds
and debts. All provinces other than Québec use the federal interest rate for individual
income tax refunds and debts.
Interest charged on tax debts is not deductible in calculating taxable income. Interest
received on tax refunds must be included in taxable income in the year received. For
any period of time where interest is calculated both on tax refunds and debts, the two
amounts may be offset. Interest will be payable only on the net balance owing, with the
rate of interest depending on whether there is a net overpayment or underpayment.
Current as of September 30, 2013
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