What happens if a RESP is not registered with the CCRA?
The Income Tax Act requires that your RESP promoter must register your RESP with the CCRA. To do this however, your promoter requires a Social Insurance Number (SIN) for each beneficiary. If you have not provided this information to your RESP promoter, your RESP has not been registered with the CCRA. According to a release from the CCRA dated August 2001, RESPs established in 1999 must be registered by December 31, 2001. If this registration does not occur by this date, all investment income earned on any contributions will be included in the contributor’s income for the year in which the contribution was made. The RESP promoter will issue the contributor a T3 slip for any investment income earned on contributions made in 1999 and 2000 and will also send a copy of these slips to the CCRA. The CCRA will then adjust the affected 1999 and/or 2000 tax records accordingly, which may result in additional income tax owing for those years.
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