In order to avoid paying interest, a taxpayer should pay the amount owing upfront, even if he decides to object. Interest is charged at the prescribed rate, compounded daily, starting from the balance-due date. In simple terms, interest can accumulate pretty fast. If the Canada Revenue Agency vacates the reassessment at the objection stage, or the taxpayer successfully litigates the matter in court, the amount that he paid upfront will be refunded, with interest.
Last updated: November 3, 2016