Effective: April 1, 2023
Applicable FAM Policies: 610 - Collection of Receivables
Applicability: GNWT Departments

INTERPRETATION

Except where another agreement, enactment or contract specifically provides for payment of interest to the Government, interest shall be charged on all monies owed to the Government for taxes levied and for the goods or services provided.

Interest must not be charged on monies owing to the Government:

• from one department to another department;
• established through assistance programs;
• where there has been a pre-arranged payment schedule negotiated;
• under a judgement;
• from bankrupts; or
• where the obligation results from invoices improperly prepared or addressed.

Interest may be charged on monies owing to the Government due from the Federal or Provincial governments as determined by a Minister or his or her delegate on an item by item basis.

The debtor shall be advised of all interest charged to his account either by separate invoice or through regular monthly statement of account.

Unless another enactment provides otherwise, interest received must be credited to the Department of Finance interest revenue code.

Calculation of Interest

*This rate is calculated annually and subject to change.

For Government invoices interest is charged commencing 30 calendar days after the due date on the invoice.

Interest on Government loans, except for interest on small business and student loans, becomes due on the first day following the date a payment on the loan is due.  

Interest must be calculated on monies owed to the Government in accordance with the Interest Rate Regulations or contract terms.