Employment Insurance - Insurable Earnings and Collection of Premiums Regulations - Part VI - Prescribed Interest Rates and Refunds of Overpayments

The following information is out of date.

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17.  (1) Where an overpayment of premiums is refunded to a person, other than an employer or purported employer or person deemed to be an employer by these Regulations, or applied to a liability of the person being refunded to Her Majesty in right of Canada, interest to be paid or applied under subsection 96(13) of the Act shall be calculated at the rate prescribed in paragraph 18(2)(b) and for the period that begins on the latest of

(a) June 15 of the year following the year in respect of which the premiums were paid,

(b) 45 days after the day on which the application for the refund was received, and

(c) the day on which the overpayment arose

and ends on the day on which the amount is so refunded or applied.

     (2) Where an overpayment of premiums is refunded to an employer or purported employer or person deemed by these Regulations to be an employer, or applied to a liability of the employer or purported or deemed employer to Her Majesty in right of Canada, interest to be paid or applied under subsection 96(13) of the Act shall be calculated at the rate prescribed in paragraph 18(2)(b) and for the period that begins on the later of

(a) the day on which the remittance that created the overpayment was received, and

(b) the day on which the remittance that created the overpayment was due to be received

and ends on the day the amount is so refunded or applied.

18. (1) For the purposes of subsection (2), "quarter" means any of the following periods in a year:

(a) the period that begins on January 1 and ends on March 31;

(b) the period that begins on April 1 and ends on June 30;

(c) the period that begins on July 1 and ends on September 30; and

(d) the period that begins on October 1 and ends on December 31.

     (2) For the purposes of

(a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

(i) the rate that is the simple arithmetic mean, expressed as a percentage per annum and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per annum, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and

(ii) 4 per cent; and

(b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister, the prescribed rate in effect during any particular quarter is the total of

(i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and

(ii) 2 per cent.

     (3) For the purposes of subsection 152.26(1) and (2) of the Act, the prescribed rate in effect is the same as that set out in paragraph (2)(a).

SOR/98-137, s. 3, SOR/2010-11, s.1.

18.1 (1) For the purpose of subsection 96(9) of the Act, employers are associated employers

(a) if they are associated or deemed to be associated under the Income Tax Act, or

(b) if one of them acquires a business or part of a business from the other by purchase, sale, amalgamation, merger or any other means.

     (2) If two or more employers are associated with each other and are entitled to a premium refund under subsection 96(6), (7), (8.2) or (8.3) of the Act, the premium refund for the employers shall not exceed the maximum premium refund available under the Act, and the refund shall be allocated among them either

(a) according to the terms of a written agreement signed by all the associated employers and filed with the Minister no later than February 28 of the year after the year in which the employer premiums were paid, or

(b) in the absence of such an agreement, by

(i) multiplying the premium refund for the year calculated under section 96 of the Act by the amount paid in employer premiums by the associated employer in the year, and

(ii) dividing the amount calculated under subparagraph (i) by the total amount of employer premiums paid by all the associated employers in the year.

SOR/98-137, s. 4, SOR/98-306 s. 1, SOR/99-137, s. 4, SOR/2000-158, s. 3

19.  These Regulations come into force on January 1, 1997.