CRA

Owe the Canada Revenue Agency for overdue tax? Your costs on that debt just rose. The rate of interest the CRA charges on current or previous balances owing ...

The rate charged on overdue tax is calculated by taking the “base” prescribed interest rate, which is 3% for the fourth quarter, and adding four percentage points. Doug Carroll, a tax and estate specialist with Aviso Wealth in Toronto, said a taxpayer who disputes interest and penalties they owe the CRA should pay the amounts owing first, and then fight. The CRA pays back interest at the base prescribed rate, plus two percentage points, which is 5% as of Oct.