Ministers Can Waive Interest During Emergencies

Summary#

These are final rules called the Regulations Amending the Interest and Administrative Charges Regulations. They let the federal government waive or reduce interest and certain administrative fees when an urgent, temporary emergency (like a pandemic or natural disaster) causes serious hardship. The rules came into force on July 6, 2020.

What it does#

• Adds a power for ministers to waive or reduce interest charged on overdue non‑tax debts when the debt is for a period during which an urgent, temporary situation exists.
• Adds a power for ministers (or a public officer they authorize in writing) to waive or reduce administrative charges for the same kinds of emergency periods.
• Sets four conditions for the emergency period: it must be (a) so serious it is a national or provincial emergency, (b) cause substantial financial hardship, (c) be caused by things like a natural disaster, disease, accident, pollution, sabotage or terrorism, and (d) result in or threaten danger to life, property, social disruption, or a breakdown in essential goods, services, or resources.
• Allows ministers to grant waivers retrospectively for charges that meet these conditions, but not to refund amounts that were already collected.

Who's affected#

• People and businesses who owe non‑tax debts to the federal government and who may be charged interest or administrative fees on overdue payments.
• Federal departments that collect those debts and apply interest or administrative charges.
• The change is broad; it applies where no other law, contract, or arrangement already sets different interest rules.

Why it matters#

• It gives immediate financial relief options during emergencies such as the COVID‑19 pandemic, floods, fires, or other disasters. That can help households and small businesses facing sudden hardship.
• The government estimated potential foregone revenue of about $2.5 million for the period March 15, 2020 to October 3, 2020, though the exact amount is uncertain.
• The rule is flexible for future emergencies, so ministers can respond case‑by‑case rather than needing new laws each time.