September 11, 2008

CRA Interest Rate Changes

The Canada Revenue Agency (CRA) has issued the prescribed annual interest rates applicable to amounts owed to the CRA and to amounts owed by the CRA to individuals and corporations. These rates are calculated quarterly and will be in effect from October 1 to December 31, 2008.

On income tax, the interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums will be 7%. The interest paid by CRA on overpayments will be 5%. The interest rate used to calculate taxable benefits for employees and shareholders from interest-free loans and low-interest loans will be 3%.

On other taxes, the interest rates on overdue and overpaid remittances will be as follows:

• GST - Overdue 7% - Overpaid 5%.
• Harmonized Sales Tax - Overdue 7% - Overpaid 5%
• Air Travellers Security Charge - Overdue 7% - Overpaid 5%
• Excise Tax (non GST) - Overdue 7% - Overpaid 5%
• Excise Duty (except Brewer Licensees) - Overdue 7% - Overpaid 5%
• Excise Duty (Brewer Licensees) - Overdue 5% - Overpaid (N/A)
• Softwood Lumber Products Export Charge - Overdue 7% - Overpaid 5%

For information on the prescribed interest rates of other calendar quarters, go to the www.cra.gc.ca/interestrates Web page.

CRA Notes of Interest

In other CRA news, the revenue agency has revoked the charitable status of the Canadian Amateur Football Association (CAFA). The revocation was effective August 30th, 2008 and published in the Canada Gazette. There were no details on the reasons for the revoking of the CAFA status, on the CRA website. According to CRA, the Income Tax Act states that "the Minister may revoke the registration of a registered charity or a registered Canadian amateur athletic association where it issues a receipt for a gift of donation otherwise than in accordance with the Income Tax act and the regulations or that contains false information."

As of publication deadline the CAFA website ( www.footballcanada.com) listed no details of the revoking of their status or the possibility of their filing an appeal.

IPBC Membership Resources

Working on behalf of our members, IPBC in conjunction with ManuLife Financial is able to offer our members the National Associations Benefits Plan. This multi-level plan provides various health coverage options that our members can take advantage of.

For more information about this and other insurance options IPBC members have access to click here.

Or log into the Members section of the IPBC website.

Tip of the Week

Grow Cautiously

Expanding your business sounds like a great way to make more money. However, growing a business successfully requires careful planning and a little caution. Too much work can result in missed deadlines, stress, lesser quality work - all risks to your reputation. Make sure you have a plan in place to increase capacity before you undertake a major advertising campaign to attract new clients or before you take on that big new contract.