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CRA Extends Deadline for Offside RRSP Relief to December 31 

Canadian Tax Adviser

 

July 24, 2012

 

The CRA has extended the deadline for taxpayers to take advantage of the transitional relief for certain RRSP investments (and related income) that unexpectedly became prohibited investments to December 31, 2012 (from June 30, 2012). Taxpayers can receive relief by filing Form RC341 "Election on Transitional Prohibited Investment Benefit for RRSPs and RRIFs".

Background
The 2011 federal budget introduced new anti-avoidance rules for registered retirement savings plans (RRSP) similar to those already enacted for tax-free savings accounts (TFSA). This legislation, enacted on December 15, 2011, includes transitional relief for certain RRSP investments (and related income) that unexpectedly became prohibited investments because of the 2011 federal budget. Previously, the CRA said that taxpayers had until June 30, 2012 to file the forms.

 

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