Frequently Asked Questions About Interest
- How is interest calculated on a refund?
- Can interest be waived?
- How is interest on tax due calculated?
How is interest calculated on a refund?
A base rate is established quarterly. With the exception of bad debt claims, interest is credited on any overpayments of tax at a rate which is 2% below the base rate. It is calculated from the date of application to the estimated date of payment of the refund.
Can interest be waived?
Owing to special circumstances, section 20 of the Fuel Tax Act provides that the Minister of Finance may waive some or all of the interest payable. In normal situations, however, you do have the right to file a Notice of Objection regarding any dispute you may have with an amount assessed. The Tax Appeals Branch of the Ministry of Revenue will conduct an impartial and fair review.
How is interest on tax due calculated?
A base rate is established quarterly. Under payments of tax are subject to a rate which is 3% above the base rate. It is calculated from the date the payment was due to the date of payment. Interest will be compounded daily to the date on which it is paid.
