Employment Insurance Regulations

56.1 (1) The following definitions apply in this section.

average bank rate

average bank rate means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. (taux d'escompte moyen)

bank rate

bank rate means the rate of interest established weekly by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association. (taux d'escompte)

debt arising from an act or omission

debt arising from an act or omission means an amount payable under section 43, 45, 46, 46.1 or 65 of the Act in respect of which a penalty was imposed under section 38, 39 or 65.1 of the Act or a warning was issued under section 41.1 of the Act or in respect of which a prosecution was undertaken under section 135 or 136 of the Act or under the Criminal Code, and includes an amount payable under section 38, 39 or 65.1 of the Act and an amount payable as a result of the judgment of a court. (dette résultant d'un acte délictueux)

(2) If an appeal in respect of a penalty imposed under section 38, 39 or 65.1 of the Act or of a warning issued under section 41.1 of the Act results in the rescinding of the penalty or warning or if a claimant is eventually acquitted in a prosecution under section 135 or 136 of the Act or under the Criminal Code, the debt that was the subject of the decision is not a debt arising from an act or omission.

(3) Interest accrues, at a rate that is calculated daily and compounded monthly at the average bank rate plus three per cent, on all debts arising from an act or omission and owing to Her Majesty under section 47 or 65.2 of the Act on or after the day this section comes into force.

(4) The accrual of interest on an amount owing to Her Majesty under section 47 or 65.2 of the Act, at the rate set out in subsection (3), begins on the day on which the debtor is notified of the amount owing.

(5) Subject to subsection (6), interest does not accrue on an amount owing to Her Majesty under section 47 or 65.2 of the Act during the period in which an appeal or other review of the decision that gave rise to the obligation to pay that amount is pending.

(6) An appeal or other review referred to in subsection (5) does not include the reconsideration of a decision by the Commission under section 41, 52 or 120 of the Act.

(7) The accrual of interest on an amount owing to Her Majesty under section 47 or 65.2 of the Act ceases on the day on which

• (a) repayment of the amount owed to Her Majesty and any interest accrued on that amount is received by Her Majesty or a duly authorized agent of Her Majesty;

• (b) the debtor dies;

• (c) the amount owed is written off under section 56; or

• (d) the accrued interest is written off under section 56.

(8) The Commission may waive or reduce the amount of interest provided for in this section if

• (a) the administrative costs of collecting the interest owing would exceed the amount of that interest;

• (b) the interest is payable in respect of an amount in dispute where the dispute has been settled, in whole or in part, in favour of the debtor; or

• (c) the accrual of interest on a particular penalty or amount owing would result in undue hardship to the debtor.