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Income Tax Regulations

Version of section 4301 from 2012-12-14 to 2023-01-11:


 Subject to section 4302, for the purposes of

  • (a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and

    • (ii) 4 per cent;

  • (b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of

    • (i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and

    • (ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;

  • (b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and

  • (c) every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/84-372, s. 2
  • SOR/87-639, s. 1
  • SOR/89-462, s. 1
  • SOR/95-285, s. 1
  • SOR/97-557, s. 4
  • 2010, c. 12, s. 23
  • 2012, c. 31, s. 65
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