Exceptions for Small Amounts, Errors and Breakdowns
8. Notwithstanding any other provision of this Part,
(a) no interest is payable to the extent that the interest accrued as a result of
(i) any error made or delay caused by Her Majesty, or a duly authorized agent of Her Majesty, in processing a payment or establishing an amount payable, or
(ii) a breakdown or other failure in the system or communication links customarily used by the Government of Canada to process payments; and
(b) no interest is payable where the total amount payable for a period, including accrued interest, is less than the minimum amount for which a demand for payment would normally be issued for that period in respect of the service or program concerned and no demand for payment would otherwise be issued.
9. (1) The appropriate Minister of a department or any public officer authorized in writing by that Minister may waive or reduce interest provided for by this Part where
(a) the administrative costs of assessing, billing and collecting the interest would exceed the amount of interest owing;
(b) the interest is in respect of an amount in dispute that has been settled in whole, or in part, in favour of the debtor;
(c) an overpayment or erroneous payment of salary, wages or recurring benefits or allowances is to be recovered from a subsequent payment of salary, wages or recurring benefits or allowances, as the case may be, except in the circumstances described in subsection 6(2); or
(d) the interest is payable under subsection 6(2) and a fine or penalty that takes into account interest on the overpayment or erroneous payment has been imposed.
(2) Subject to subsection (3), the appropriate Minister of a department or any public officer authorized in writing by that Minister may waive or reduce interest provided for by this Part where the debtor was prevented from making a payment by circumstances beyond the debtor’s control, including
(a) death or incapacity of the debtor or of the person who is directly responsible for making the payment on behalf of the debtor;
(b) a postal disruption that can reasonably be considered to have delayed the payment or made it impossible, where no alternative means of making payment that would not cause undue inconvenience to the debtor are available; and
(c) a delay in the processing of a pre-authorized debit that is caused by a breakdown or other failure in the external systems or communication links customarily used to process such debits.
(3) When contemplating a waiver or reduction of interest under subsection (2), the appropriate Minister or the public officer shall take into consideration
(a) the case presented by the debtor;
(b) the debtor’s payment history and history of voluntary compliance; and
(c) the debtor’s diligence in conducting the debtor’s affairs in relation to the debt.
ADMINISTRATIVE CHARGES FOR DISHONOURED INSTRUMENTS
10. (1) Where an instrument tendered in payment or settlement of an amount due to Her Majesty is, for any reason, dishonoured, an administrative charge of $15 is payable by the debtor to Her Majesty.
(2) Where a payment is made by Her Majesty to a financial institution in order to reimburse that institution for an amount initially credited to the Receiver General on the basis of a dishonoured instrument, an administrative charge of $10 is payable by the debtor to Her Majesty, in addition to the charge referred to in subsection (1).
(3) Where a financial institution charges an amount to Her Majesty for monitoring the account of a debtor who has tendered a dishonoured instrument and for subsequently certifying or clearing that dishonoured instrument, an administrative charge in that amount is payable by the debtor to Her Majesty, in addition to the charge referred to in subsection (1).
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