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Prescribed Interest Rates for Capital Taxes

Notes

(1) The rates in these tables apply only to underpaid and overpaid capital taxes. Effective

July 1, 2012 only financial institutions are subject to capital tax (see the table “Capital Tax

Rates—Financial Institutions”). These rates would also apply to underpaid or overpaid

capital taxes of general corporations in earlier years. For the applicable prescribed interest

rates for personal and corporate income tax debts and refunds, as well as for employee

and shareholder taxable benefits, low-interest loans and other related-party transactions,

see the tables “Prescribed Interest Rates—2013” and “Prescribed Interest Rates—2014”.

(2) Manitoba does not pay refund interest on overpaid capital tax.

(3) The Ontario prescribed rates in the table apply only to tax debts and refunds arising

from taxation years that ended before 2009. Interest on Ontario underpaid and overpaid

taxes for taxation years after 2008 (when Ontario harmonized its corporate tax system)

is calculated based on the federal prescribed rates (see the tables “Prescribed Interest

Rates—2013” and “Prescribed Interest Rates—2014”).

(4) Quebec also charges an additional 10% per year on underpaid corporate instalments if

less than 90% of the amount is paid.

(5) New Brunswick rates apply to financial institutions capital tax only. Interest on capital tax

debts and refunds for general corporations is calculated based on the federal prescribed

rates (see the tables “Prescribed Interest Rates—2013” and “Prescribed Interest

Rates—2014”).

(6) New Brunswick does not pay refund interest on overpaid financial institutions capital tax.

(7) Nova Scotia no longer pays refund interest on overpaid financial institutions capital taxes

with retroactive effect.

(8) Prince Edward Island only pays refund interest if it arises as a result of an objection or

appeal.

Current as of December 31, 2014