Tax payable on an advantage

If the annuitant or a person not dealing at arm’s length with the annuitant (including the annuitant’s RRSP or RRIF) was provided with an advantage in relation to their RRSP or RRIF during the year, a 100% tax is payable, which is:

• in the case of a benefit, the fair market value (FMV) of the benefit
• in the case of a loan or a debt, the amount of the loan or debt
• in the case of an RRSP strip, the amount of the RRSP strip

For taxes payable on an advantage, you must file using Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs, with a payment for any balance due, no later than June 30 following the end of the calendar year. For payment remittance options, see Payments to the CRA.

For more information, see Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, and TFSAs.

Forms and publications

• Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs
• RC298, Advantage Tax Return for RRSP, TFSA, FHSA, or RDSP issuers, RESP promoters or RRIF carriers