In terms of interest rates on tax debt, which is more greedy between the Quebec government and the federal government? And in terms of tax refund interest rates, it is the most cheap between the two government orders?
Drum roll… Either way, the “palm” goes to the Quebec government, which finds itself the most “greedy” and most “expensive” to Quebec taxpayers.
Dear Quebecers, we may weep against the federal government, but we have to admit that Revenue Canada is more generous than Revenue Quebec when it comes to interest rates on debt and repayment.
Beautiful coincidence! While the deadline (April 30) for filing our 2022 tax returns has passed, Revenu Québec just raised the annual interest rate on debt to 10%.
This is 1 percentage point higher than the interest rate (9.0%) charged by the Canada Revenue Service on tax debts (taxes, fees and contributions).
During the first quarter, from January to March 2023, Revenu Québec charged 9% interest on receivables, compared this time to 8.0% on the Canadian revenue side.
This more expensive percentage difference in favor of Revenu Québec is a “novelty” introduced by the government of François Legault in 2023.
In previous quarters it ranged from 1any October 2020 At the end of December 2022, Quebec and Ottawa have maintained rates of interest on tax dues at the same level.
For the current quarter of 1any From April to June 30, the Canada Revenue Service raised the interest rate (annually) on refunds of overpayments (taxes, taxes and contributions) made by taxpayers to 7%.
This is 2.75 percentage points more than Revenu Québec’s rate of 4.25%.
Compared to the previous quarter, Q1any From January to March 31, the gap widened. in 1any In the 2023 quarter, Revenue Canada offered a 6% interest rate on taxpayer overpayments compared to 3.75% for Revenue Québec.
This gave a gap of 2.25 percentage points. In the fourth quarter of 2022, the difference was two points and in the third quarterH quarter by 1.75 points. As you can see, as each quarter goes by, the gap with Revenue Canada widens, and Revenue Quebec benefits more and more from higher interest rates.
more and more profitable
Reporting directly to the Minister of Finance, Eric Girard, Revenu Québec had also taken advantage of raising interest rates to increase the gap in favor of the government between, one, what it would receive in interest rates on debt, and the second, which it presents as interest on overpayments of Taxes and Fees.
during 3H In the 2022 quarter, the spread in favor of the Quebec government was 3.75 percentage points. Today, the gap has narrowed to 5.75 percentage points in favor of the Legault government.
This is not justified because at the federal level, the difference between debt (9%) and compensation (7%) rates is only two percentage points in favor of the government.
“Music guru. Incurable web practitioner. Thinker. Lifelong zombie junkie. Tv buff. Typical organizer. Evil beer scholar.”
The last wave of delays | Air Canada has retracted its refusal to compensate affected passengers
Canada lost 17,000 jobs in May and the unemployment rate rose to 5.2%
Important recall for ground beef sold at Super C that contains a mineral