Share on LinkedInShare on LinkedIn

ARTICLE · 31 DECEMBER 2021

RRSP Prohibited & Non-Qualified Investments

Rotfleisch & Samulovitch P.C.
Explore more from Rotfleisch & Samulovitch P.C.

Registered retirement savings plans (RRSPs) are a tax efficient method of investment for individuals created by the government to encourage Canadians to save for retirement.

CanadaTax
David Rotfleisch
David Rotfleisch
Author LinkedIn connections

RRSP BACKGROUND – RRSP ANTI-AVOIDANCE RULES: PROHIBITED AND NON-QUALIFIED INVESTMENTS

Registered retirement savings plans (RRSPs) are a tax efficient method of investment for individuals created by the government to encourage Canadians to save for retirement. 

The basic structure of an RRSP is that a financial institution (the issuer) holds investments in trust (the RRSP) for an individual with whom the issuer has a contract or arrangement that meets certain requirements. When the individual makes eligible contributions to the RRSP, then the individual receives an income tax deduction in the same amount as the contribution. The individual is called the "controlling individual" of the RRSP. The RRSP can then invest the contributions into various types of investments. RRSPs are not allowed to own certain "non-qualifying" or "prohibited" investments. For example, cryptocurrencies cannot be held in a RRSP directly, although it is possible to hold them in a RRSP

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Advance Income Tax Ruling Requests For “major Investments” In Canada To Take Priority

The Canada Revenue Agency has announced a new policy to prioritize advance income tax ruling requests for investments of $1 billion or more in Canada. This initiative aims to provide greater tax certainty and reduce risks for major investors, potentially accelerating large-scale project development and strengthening Canada's economic competitiveness. However, questions remain about implementation timelines and potential impacts on smaller ruling requests.
CanadaTax
Gowling WLG
Gowling WLG
Article

Understanding Canada’s new "Productivity Mega Deduction": Broad-based, immediate, and permanent expensing

Canada's new Productivity Mega Deduction promises to slash the marginal effective tax rate on business investment to just 6.4%, positioning the country as the most competitive G7 nation for capital deployment. This permanent tax incentive extends immediate expensing to roughly 65% of capital assets, fundamentally reshaping the economics of investing in Canadian operations across manufacturing, energy, technology, and resource sectors.
CanadaTax
Gowling WLG
Gowling WLG
Article

Canadian Prime Minister Announces ‘Productivity Mega Deduction’

Canada's new Productivity Mega Deduction permanently provides immediate expensing for a wide range of depreciable property and Canadian development expenses, dramatically expanding the scope beyond the previously announced Productivity Super Deduction. The measure aims to reduce Canada's marginal effective tax rate on new business investment to 6.4%, positioning it as the lowest among major economies and less than half the U.S. rate.
CanadaTax
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
Article

Update: Bare Trust Reporting Rules For 2026

The federal government has finalized revised reporting rules for bare trusts, significantly narrowing the original requirements. While bare trusts are generally exempt from filing for 2023-2025, certain arrangements involving separated legal and beneficial ownership will face new filing obligations starting with the 2026 taxation year, with specific exemptions for family trusts, joint ownership arrangements, and principal residences.
CanadaTax
Fogler, Rubinoff LLP
Fogler, Rubinoff LLP