Interest and Penalties
Prescribed CRA interest rates on overdue taxes and non-arms length loans
| Tax Arrears | Tax Refunds | Shareholder Loans | |
| 2020 | |||
| 1st Quarter | 6% | 2% | 2% |
| 2019 | |||
| 1st Quarter | 6% | 2% | 2% |
| 2nd Quarter | 6% | 2% | 2% |
| 3rd Quarter | 6% | 2% | 2% |
| 4th Quarter | 6% | 2% | 2% |
| 2018 | |||
| 1st Quarter | 6% | 2% | 2% |
| 2nd Quarter | 6% | 2% | 2% |
| 3rd Quarter | 6% | 2% | 2% |
| 4th Quarter | 6% | 2% | 2% |
| 2017 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| 2016 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| 2015 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| 2014 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 6% | 4% | 2% |
| 2013 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| 2012 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| 2011 | |||
| 1st Quarter | 5% | 3% | 1% |
| 2nd Quarter | 5% | 3% | 1% |
| 3rd Quarter | 5% | 3% | 1% |
| 4th Quarter | 5% | 3% | 1% |
| Description | Penalty | ||
| Failure to file income tax returns (T1, T1OVP, T2, T3) |
First occurrence – 5% of unpaid tax plus 1% per month not to exceed 12 months |
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| Failure to provide information on prescribed forms | $100 for every occurrence | ||
| False statements or omissions knowingly or under gross negligence | Greater of $100 and 50% of the tax payable on understatement of income | ||
| Failure to report income in year and any of three preceding years | 10% Federal and Provincial of the amount not reported | ||
| Failure to deduct, withhold, or remit tax deducted and withheld |
First occurrence – 10% of amounts not deducted, withheld or remitted |
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| Tax evasion | On summary conviction, 50% to 200% of tax evaded or both the fine and imprisonment for up to two years. On indictment, 100% to 200% of tax evaded and imprisonment for up to five years | ||
| Failure to remit source deductions |
3% up to three days, 5% four days to five days, 7% six days to seven days and 10% over seven days |
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| Failure to maintain adequate books and records | Prosecution and a fine not less than $1,000 | ||
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