Definition

1   In this regulation, "Act" means the Income Tax Act.

Interest payable to government

2   (1) For the purposes of section 252 (3) of the Act, interest payable to the government under Part 15 of the Act must be calculated on a daily basis and compounded monthly.

(2) For the purposes of section 252 (3) of the Act, the rate of interest prescribed is, during each successive 3 month period beginning on April 1, July 1, October 1 and January 1 in each year, 3% above the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding that 3 month period.