AI-assisted research summary: This regulation sets how interest is calculated for certain tax debts and other amounts owing to government, including the applicable rate, compounding rules, repeal of an older regulation, and the start date.
Interest Rate Regulation, M.R. 85/2012 The Financial Administration Act , C.C.S.M. c. F55 Regulation 85/2012 Registered June 28, 2012 bilingual version (HTML) Table of Contents Section 1 "Prime" defined 2 Prescribed rate for certain debts 3 Compounding 4 Interest on other amount owing 5 Repeal 6 Coming into force "Prime" defined 1 In this regulation, "prime" means (a) for the period from January 1 to June 30 of any year, the prime lending rate, expressed as a percentage, of the Royal Bank of Canada as it stood on January 1 of that year; and (b) for the period from July 1 to December 31 of any year, the prime lending rate, expressed as a percentage, of the Royal Bank of Canada as it stood on July 1 of that year. Prescribed rate for certain debts 2 Interest payable under subsection 38(1) of The Tax Administration and Miscellaneous Taxes Act or subsection 5.6(4) of The Income Tax Act accrues from time to time at the applicable annual rate or rates for the different periods set out in the following table: Year Jan. 1 to June 30 July 1 to Dec. 31 before 2002 prime + 2% prime + 2% 2002 prime + 2% prime + 4% after 2002 and before 2012 prime + 4% prime + 4% 2012 prime + 4% prime + 6% after 2012 and before 2020 prime + 6% prime + 6% 2020 prime + 5% prime + 5% 2021 prime + 4% prime + 4% after 2021 prime + 3% prime + 3% Compounding 3(1) The interest payable under subsection 38(1) of The Tax Administration and Miscellaneous Taxes Act in respect of a tax debt as defined in that Act is to be compounded monthly. 3(2) The interest payable on a debt under subsection 5.6(4) of The Income Tax Act is to be compounded annually. Interest on other amount owing 4 In the case of an amount owing to the government, other than under any provision listed in section 2 or under any other provision or agreement that provides for a different rate of interest, interest is payable on the amount at the following annual rates: (a) for a period from January 1 to June 30 of any year, prime plus 2%; (b) for a period from July 1 to December 31 of any year, prime plus 2%. Repeal 5 The Interest Rate Regulation , Manitoba Regulation 107/2002, is repealed. Coming into force 6(1) This regulation comes into force on July 1, 2012. 6(2) Section 3 is effective for all periods commencing after June 30, 2002.