<

>

Vous consultez une page Web conservée, recueillie par Bibliothèque et Archives Canada le 2007-11-25 à 15:25:22.
Il se peut que les informations sur cette page Web soient obsolètes, et que les liens hypertextes externes, les formulaires web, les boîtes de recherche et les éléments technologiques dynamiques ne fonctionnent pas. Voir toutes les versions de cette page conservée.

You are viewing a preserved web page, collected by Library and Archives Canada on 2007-11-25 at 15:25:22. The information on this web page may be out of date and external links, forms, search boxes and dynamic technology elements may not function. See all versions of this preserved page.

You are viewing a preserved web page, collected by Library and Archives Canada on 2007-11-25 at 15:25:22. The information on this web page may be out of date and external links, forms, search boxes and dynamic technology elements may not function. See all versions of this preserved page.

X

Any instalment interest and penalty charges that apply will be shown on your 2007 *Notice of Assessment* or *Notice of Reassessment*.

**Instalment interest**

We charge instalment interest if **all** of the following conditions apply:

- we send you an instalment reminder in 2007 that shows the amount to pay;

- you are required to make instalment payments in 2007;
**and**

- you choose not to make instalment payments, or you make payments that are late or less than the required amount.

We calculate the interest on each instalment that you should have paid using the payment option that calculates the least amount of interest. Then we calculate the interest on each instalment you did pay. We charge the difference between these two amounts if the difference is more than $25.

Instalment interest is compounded daily at the prescribed interest rate. This rate can change every three months. To get the current interest rate, see prescribed interest rates.

If you realize during 2007 that you paid less than your required instalment payment, or that you did not pay it on time, you can reduce or eliminate an instalment interest charge by overpaying your next 2007 instalment payment or by paying it early.

**Instalment penalty**

You may also have to pay a **penalty** if your instalment payments are late or less than the required amount. We apply this penalty only if your instalment interest charges for 2007 are more than $1,000.

To calculate the penalty, we determine which of the following amounts is **higher**:

- $1,000; or
- one-quarter of the instalment interest that you would have had to pay if you had not made instalment payments for 2007.

Then, we subtract the higher amount from your actual instalment interest charges for 2007. Finally, we divide the difference by two and the result is your penalty.

**Example**

For 2007, John made instalment payments that were less than he should have paid. As a result, he has $2,500 of actual instalment interest charges for 2007. If John had not made **any** instalment payments in 2007, his instalment interest charges would have been $3,200. Since one quarter of $3,200 is $800, we subtract $1,000 (the **higher** amount) from $2,500. The difference is $1,500. Then, we divide $1,500 by two. John's penalty is $750.

If you are unable to find the information you were looking for about this specific topic, please select the Contact us button.