2023-05-11 04:00:00
When it comes to interest rates on tax debts, which is more greedy between the Quebec government and the federal government? And in terms of interest rates on tax refunds, which is the most cheap between the two levels of government?
Drum roll… In both cases, the “palm” goes to the Government of Quebec, which finds itself both the most “greedy” and the most “cheap” towards Quebec taxpayers.
Dear Quebeckers, we may cry once morest the federal government, but we have to admit that Revenue Canada is more generous than Revenue Quebec when it comes to interest rates on debts and repayments.
RECEIVABLES
Nice coincidence! While the deadline (April 30) has just passed to file our 2022 tax returns, Revenu Québec has just increased its annual interest rate on debts to 10%.
This is 1 percentage point more than the interest rate (9.0%) imposed by Revenue Canada on tax debts (taxes, duties, contributions).
During the first quarter, January to March 2023, Revenu Québec charged 9% interest on the receivables, compared this time to 8.0% on the side of Revenue Canada.
This difference of one percentage point more expensive in favor of Revenu Québec is a “novelty” introduced by the government of François Legault in 2023.
In previous quarters ranging from 1is October 2020 At the end of December 2022, Québec and Ottawa maintained their respective interest rates on tax receivables at the same level.
REFUNDS
For the current quarter of 1is April to June 30, Revenue Canada increased the interest rate (annual) on refunds of overpayments (taxes, taxes, contributions) paid by taxpayers to 7%.
This is 2.75 percentage points more than Revenu Québec with its rate of 4.25%.
Compared to the previous quarter, that of 1is January to March 31, the gap widened. At 1is quarter of 2023, Revenue Canada offered a 6% interest rate on taxpayer overpayments compared to 3.75% at Revenu Québec.
This gave a gap of 2.25 percentage points. In the 4th quarter of 2022, the difference was 2 points and in the 3rd quarter, 1.75 points. As you can see, the more the quarters pass, the more the gap with Revenue Canada grows, Revenue Quebec profiting more and more from the rise in interest rates.
MORE AND MORE PROFITABLE
Reporting directly to the Minister of Finance, Éric Girard, Revenu Québec also took advantage of the rate hike to increase the gap in favor of the government between, one, what it will get in interest rates on debts, and two , which he gives as interest on overpayments of taxes and duties.
During the 3rd quarter of 2022, the difference in favor of the Quebec government was 3.75 percentage points. Today, the gap is down to 5.75 percentage points in favor of the Legault government.
This is all the more unjustifiable since at the federal level, the difference between interest rates on debts (9%) and reimbursements (7%) is only 2 percentage points in favor of the government.
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#Revenue #Canada #treats #Revenue #Quebec
