Interest and Administrative Charges Regulations

9 (1) The appropriate Minister of a department or any public officer authorized in writing by that Minister may waive or reduce interest provided for by this Part where

• (a) the administrative costs of assessing, billing and collecting the interest would exceed the amount of interest owing;

• (b) the interest is in respect of an amount in dispute that has been settled in whole, or in part, in favour of the debtor;

• (c) an overpayment or erroneous payment of salary, wages or recurring benefits or allowances is to be recovered from a subsequent payment of salary, wages or recurring benefits or allowances, as the case may be, except in the circumstances described in subsection 6(2);

• (d) the interest is payable under subsection 6(2) and a fine or penalty that takes into account interest on the overpayment or erroneous payment has been imposed; or

• (e) the interest is payable for a period during which there exists an urgent and critical situation of a temporary nature that

  • (i) is so serious as to be a national or provincial emergency,

  • (ii) causes substantial financial hardship,

  • (iii) is caused by an actual or imminent fire, flood, drought, storm, earthquake or other natural phenomenon, a disease in human beings, animals or plants, an accident, pollution or an act of sabotage or terrorism, and

  • (iv) results, or may result, in danger to the lives, health or safety of individuals, danger to property, social disruption or a breakdown in the flow of essential goods, services or resources.

(2) Subject to subsection (3), the appropriate Minister of a department or any public officer authorized in writing by that Minister may waive or reduce interest provided for by this Part where the debtor was prevented from making a payment by circumstances beyond the debtor’s control, including

• (a) death or incapacity of the debtor or of the person who is directly responsible for making the payment on behalf of the debtor;

• (b) a postal disruption that can reasonably be considered to have delayed the payment or made it impossible, where no alternative means of making payment that would not cause undue inconvenience to the debtor are available; and

• (c) a delay in the processing of a pre-authorized debit that is caused by a breakdown or other failure in the external systems or communication links customarily used to process such debits.

(3) When contemplating a waiver or reduction of interest under subsection (2), the appropriate Minister or the public officer shall take into consideration

• (a) the case presented by the debtor;

• (b) the debtor’s payment history and history of voluntary compliance; and

• (c) the debtor’s diligence in conducting the debtor’s affairs in relation to the debt.