Refund of taxes paid on non-qualified or prohibited investments

If you disposed of a non-qualified or prohibited investment reported or previously reported in Parts A and B of Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs, you may be entitled to a return of taxes paid if either:

  • the RRSP or RRIF trust disposes of the property in question before the end of the calendar year following the calendar year in which the tax arose
  • the property ceases to be a non-qualified or prohibited investment before the end of the calendar year following the calendar year in which the tax arose

However, no refund will be issued if it is reasonable to expect that the annuitant knew or should have known at the time the property was acquired by the RRSP or RRIF trust that the property was or would become a non-qualified or prohibited investment.

Note

If you disposed of a non-qualified or prohibited investment reported in Parts A and B in the same calendar (tax) year that the non-qualified or prohibited investment was acquired, then remittance of the tax is not required. However, remittance of the tax is required if it is reasonable to expect that the annuitant knew or should have known at the time the property was acquired by the RRSP or RRIF trust, that the property was or would become a non-qualified or prohibited investment.

How to claim a refund

To claim a refund, you must:

  • send your request in writing (you can attach the letter to Form RC339)
  • attach the appropriate documents detailing the information relating to the acquisition and disposition of the non-qualified or prohibited property. The documents must contain the following:
    • name and description of the property
    • number of shares or units
    • date the property was acquired or became non-qualified or prohibited property
    • date of the disposition or the date that the property became qualified or ceased to be prohibited
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