Tax memo: Federal Budget Includes RRSP Anti-Avoidance Rule

Download

Consequences and implications

Does your Registered Retirement Savings Plan (RRSP) invest in a “private business trust”? If so, we can help you mitigate any adverse tax consequences of a March 22, 2011 federal budget proposal.

The federal budget extends to RRSPs anti-avoidance rules that already apply to Tax-Free Savings Accounts. As a result, RRSP investments in certain private business trusts could be subject to these rules, triggering severe penalties.