Additional Interest on Overdue Instalment Payments
Interest on debts accrues on any portion of an instalment payment that is not made by the deadline.
Additional interest of 10% per year, capitalized daily, will be charged on top of the regular interest on amounts owing if:
- the individual's payment is less than 75% of the amount owed;
- the corporation's payment is less than 90% of the amount owed.
- For an individual, instalment payments are remittances made to cover a portion of his or her income tax for the current year, contributions to the Québec Pension Plan and the health services fund, his or her health contribution, and the premiums payable under the Québec prescription drug insurance plan and the Québec parental insurance plan.
- For a corporation, instalment payments are remittances made to cover a portion of the corporation's income tax for the current year, tax on capital or compensation tax (in the case of a financial institution).