Section 124 — Excise Tax Act: Compound interest

Interest computed at a prescribed rate and any penalty computed at a rate per year under any provision of this Part shall be compounded daily. Where, on any day, both penalty computed at a rate per year and interest are required to be compounded, they shall, on that day, be compounded together at a single rate equal to the total of the penalty rate and the interest rate as though both the penalty and interest were interest computed at that single rate. Where an amendment to this Part, or an amendment or an enactment that relates to this Part, applies to a person who did something or to or for whom something was done, applies to property or a service that was supplied or in respect of which something was done, applies to an event or a transaction that occurred, applies to a period all or part of which is, or comes into force on a particular day that is, before the day the amendment or enactment is assented to or promulgated, for the purposes of applying the provisions of this Part that relate to or that provide for the payment, or the liability for payment, of interest in respect of any amount, the amount shall be determined and interest shall be computed thereon as though the amendment or enactment had been assented to or promulgated before the thing was done, the supply was made, the occurrence of the event or transaction, the beginning of the period or the particular day, as the case may be. Subsection (3) does not apply for the purposes of computing any penalties under this Part.