Interest rates and calculations

2   (1) For the purpose of sections 15 and 16 of the Act, the rate of interest during each successive 3 month period beginning on January 1, April 1, July 1 and October 1 in each year shall be 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.

(2) For the purpose of sections 15 (2) and 16 (2) of the Act, the rate of interest during each successive 3 month period beginning on January 1, April 1, July 1 and October 1 in every year shall be 2% below the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding that 3 month period.

(3) Where an operator fails to pay an amount at the time required under section 13 of the Act, he shall pay interest on that amount, calculated from the time it became due until the date of payment.

(4) Where an operator fails to pay an amount at the time required under section 14 (2) of the Act, he shall pay interest on that amount, calculated

(a) from the time it became due until the date of payment, or

(b) where the amount is not paid by the time a return is required to be delivered under section 13 of the Act, from the time it became due until the date on which the return was required to be filed.

(5) For the purposes of subsection (6)

(a) "tax" includes interest that has accrued to the date of payment required by section 13 of the Act and interest required on the payments under section 14 (2) of the Act but does not include any penalties assessed or assessable under the Act, and

(b) payments received after the date required by section 13 of the Act shall be applied, firstly, to any penalties that may be assessed or assessable under sections 18, 39 and 40 of the Act and, secondly, to tax.

(6) Where an operator submits a partial payment on account of tax assessed that is subject to the payment of interest, the division of the payment between the amount of tax and accrued interest shall be determined by use of the following formulae:

(a) P = T + I

where

P = the partial payment remitted by the operator;

T = the amount of tax principal paid;

I = the accrued interest to the date of payment of the tax principal;

(b)  

	P
T =
	1 + Σr		n
			365

where

T = the amount of tax principal paid;

P = the payment remitted by the operator;

r = the prescribed rate of interest for a period during which interest is assessable;

n = the number of days for which a prescribed rate of interest is assessable.

[am. B.C. Reg. 393/92.]