Income Tax Act — I-3.3 161
General 161 (1) Where at any time after a taxpayer’s balance-due day for a taxation year (a) the total of the taxpayer’s taxes payable under this Part and Parts I.3, VI, VI.1 and VI.2 (determined in accordance with subsection 191.5(9)) for the year exceeds (b) the total of all amounts each of which is an amount paid at or before that time on account of the taxpayer’s tax payable and applied as at that time by the Minister against the taxpayer’s liability for an amount payable under this Part or Part I.3, VI, VI.1 or VI.2 for the year, the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess, computed for the period during which that excess is outstanding. Interest on instalments (2) In addition to the interest payable under subsection 161(1), where a taxpayer who is required by this Part to pay a part or instalment of tax has failed to pay all or any part thereof on or before the day on or before which the tax or instalment, as the case may be, was required to be paid, the taxpayer shall pay to the Receiver General interest at the prescribed rate on the amount that the taxpayer failed to pay computed from the day on or before which the amount was required to be paid to the day of payment, or to the beginning of the period in respect of which the taxpayer is required to pay interest thereon under subsection 161(1), whichever is earlier. (2.1) [Repealed, 2003, c. 15, s. 116(1)] Contra interest (2.2) Notwithstanding subsections (1) and (2), the total amount of interest payable by a taxpayer (other than a graduated rate estate) under those subsections, for the period that begins on the first day of the taxation year for which a part or instalment of tax is payable and ends on the taxpayer’s balance-due day for the year, in respect of the taxpayer’s tax or instalments of tax payable for the year shall not exceed the amount, if any, by which (a) the total amount of interest that would be payable for the period by the taxpayer under subsections 161(1) and 161(2) in respect of the taxpayer’s tax and instalments of tax payable for the year if no amount were paid on account of the tax or instalments exceeds (b) the amount of interest that would be payable under subsection 164(3) to the taxpayer in respect of the period on the amount that would be refunded to the taxpayer in respect of the year or applied to another liability if (i) no tax were payable by the taxpayer for the year, (ii) no amount had been remitted under section 153 to the Receiver General on account of the taxpayer’s tax for the year, (iii) the rate of interest prescribed for the purpose of subsection 161(1) were prescribed for the purpose of subsection 164(3), and (iv) the latest of the days described in paragraphs 164(3)(a), 164(3)(b) and 164(3)(c) were the first day of the year. (3) [Repealed, 1994, c. 7, Sch. II, s. 133(3)] Limitation — farmers and fishermen (4) For the purposes of subsection 161(2) and section 163.1, where an individual is required to pay a part or instalment of tax for a taxation year computed by reference to a method described in subsection 155(1), the individual shall be deemed to have been liable to pay on or before the day referred to in subsection 155(1) a part or instalment computed by reference to (a) the amount, if any, by which (i) the tax payable under this Part by the individual for the year, determined before taking into consideration the specified future tax consequences for the year, exceeds (ii) the amounts deemed by subsections 120(2) and (2.2) to have been paid on account of the individual’s tax under this Part for the year, determined before taking into consideration the specified future tax consequences for the year, (b) the individual’s instalment base for the preceding taxation year, or (c) the amount stated to be the amount of the instalment payable by the individual for the year in the notice, if any, sent to the individual by the Minister, whichever method gives rise to the least amount re