Old Age Security Regulations — 48
48 (1) The following definitions apply in this section. average bank rate means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. ( taux d’escompte moyen ) bank rate means the rate of interest established weekly by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association. ( taux d’escompte ) debt means (a) a debt due under subsection 37(2) of the Act in respect of which a penalty has been imposed under section 44.1 of the Act; or (b) a debt due under subsection 37(2.02) of the Act. ( créance ) demand for payment means a demand for payment in writing and includes a notification of a decision to impose a penalty under section 44.1 of the Act or of the amount of a penalty imposed under that section. ( demande de paiement ) due date means, in respect of a debt, (a) where a payment schedule has been established, any day on which a scheduled payment is to be made; or (b) where no payment schedule has been established, the day that is 120 days after the day on which a demand for payment was issued. ( date d’exigibilité ) (2) Interest is payable on all debts that are recoverable on or after the day on which this section comes into force. (3) The accrual of interest on a debt, at the rate set out in subsection (4), begins on the due date. (4) Interest accrues on a debt at a rate that is calculated daily and compounded monthly at the average bank rate plus three per cent. (5) Interest does not accrue on a debt during the period in which a reconsideration under subsection 27.1(2) of the Act, an appeal under subsection 28(1) of the Act or section 55 of the Department of Employment and Social Development Act or a judicial review under the Federal Courts Act is pending in respect of that debt. (6) The accrual of interest on a debt or on a portion of the debt, as applicable, ceases on (a) the day before the day on which a scheduled payment in respect of the debt or a payment of the debt in full is received by Her Majesty; (b) the day on which the debt or the portion of the debt is remitted under subsection 37(4) of the Act; (c) the day on which the penalty that constitutes the debt is reduced or the decision imposing that penalty is rescinded under (i) subsection 44.1(4) of the Act, or (ii) the latest of the following decisions in respect of a decision or determination of the Minister under section 44.1 of the Act: (A) a decision of the Minister under subsection 27.1(2) of the Act, and (B) a decision on an appeal under subsection 28(1) of the Act or section 55 of the Department of Employment and Social Development Act or a judicial review under the Federal Courts Act ; (d) the day on which the accrued interest is remitted under subsection (7); or (e) the day on which the debtor dies. (7) The conditions under which the Minister may remit in whole or in part the interest payable under this section are that (a) the interest has ceased to accrue in accordance with paragraph (6)(c); (b) the interest cannot be collected within the reasonably foreseeable future; (c) the administrative costs of collecting the interest would exceed the amount of that interest; and (d) the payment of the interest would result in undue hardship to the debtor. SOR/2010-45, s. 26; 2013, c. 40, s. 236; SOR/2013-62, s. 4