In terms of interest rates on tax loans, which is more greedy between the Quebec government and the federal government? And in terms of interest rates on tax refunds, it is very high cheap Between the two levels of government?
Drum roll… In both cases, the “palm” goes to the Quebec government, which it finds both the most “greedy” and the most “cheap” of Quebec taxpayers.
Dear Quebecers, we may cry out 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 loans and repayments.
Nice coincidence! Despite the deadline (April 30) to file our 2022 tax returns, Revenue Quebec raised the annual interest rate on debts to 10%.
This is 1 percent higher than the interest rate (9.0%) charged by Revenue Canada on tax debts (taxes, duties, contributions).
In the first quarter, from January to March 2023, Revenu Québec charged 9% interest on receivables, this time compared to 8.0% on the Revenue Canada side.
This percentage point difference in favor of Revenu Quebec is a “novelty” introduced by the François Legault government in 2023.
from 1 in previous quarterser From October 2020 to the end of December 2022, Quebec and Ottawa have kept their respective interest rates on tax returns at the same level.
1 for the current quarterer From April to June 30, Revenue Canada increased the interest rate (per annum) on refunds of overpayments (taxes, taxes, contributions) paid by taxpayers to 7%.
This is 2.75 percent higher than Revenue Quebec with a rate of 4.25%.
Compared to the previous quarter, 1er From January to March 31, the gap widened. At 1er For the 2023 quarter, Revenue Canada offered a 6% interest rate on taxpayer overpayments, compared to 3.75% in Revenue Quebec.
This resulted in a difference of 2.25 percentage points. In the 4th quarter of 2022, the difference is 2 points and 3e Quarter, 1.75 points. As you can see, as the quarters go by, the gap with Revenue Canada widens, with Revenue Quebec benefiting more and more from rising interest rates.
More and more profitable
Reporting directly to Finance Minister Eric Girard, Revenue Quebec also gets to increase the gap that favors the government, one, in what it gets in interest rates on debt, and two, the rate hike he gives. Interest on overpayment of taxes and duties.
During the 3e For the 2022 quarter, the difference is 3.75 percentage points in favor of the Quebec government. Today, the gap has narrowed to 5.75 percentage points in favor of the Legault government.
At the federal level, this is even more untenable as the difference between interest rates on loans (9%) and reimbursement (7%) is only 2 percentage points in favor of the government.