Canada Education Savings Regulations (SOR/2005-151)

Regulations are current to 2019-06-20 and last amended on 2018-12-07. Previous Versions

Canada Education Savings Regulations

SOR/2005-151

CANADA EDUCATION SAVINGS ACT

Registration 2005-05-17

Canada Education Savings Regulations

P.C. 2005-933 2005-05-17

Her Excellency the Governor General in Council, on the recommendation of the Minister of State styled Minister of Human Resources and Skills Development, pursuant to section 13 of the Canada Education Savings ActFootnote a, hereby makes the annexed Canada Education Savings Regulations.

Interpretation

 The definitions in this section apply in these Regulations.

Act

Act means the Canada Education Savings Act. (Loi)

assisted contribution

assisted contribution means a contribution made to an RESP in respect of which a CES grant has been paid. (cotisation subventionnée)

brother

brother in relation to a beneficiary, includes a son of the common-law partner or spouse of a parent of the beneficiary. (frère)

CLB

CLB means Canada Learning Bond. (Version anglaise seulement)

CLB account

CLB account means an account that holds the CLB paid into an RESP in respect of a beneficiary. (compte du bon d’études)

common-law partner

common-law partner has the same meaning as in subsection 248(1) of the Income Tax Act. (conjoint de fait)

EAP

EAP means an educational assistance payment. (PAE)

grant account

grant account means an account that holds all CES grants paid into an RESP. (compte de subvention)

RESP

RESP means a registered education savings plan. (REEE)

sister

sister in relation to a beneficiary, includes a daughter of the common-law partner or spouse of a parent of the beneficiary. (sœur)

trustee agreement

trustee agreement means an agreement entered into by the Minister and a trustee under an RESP that relates to the payment of a CES grant or CLB to the RESP. (convention de fiducie)

Ordering of Withdrawals

 If both assisted and unassisted contributions have been made to an RESP, withdrawals of contributions from the RESP are considered to be made in the order specified below:

  • (a) assisted contributions are considered to be withdrawn before unassisted contributions; and

  • (b) unassisted contributions made after 1997 are considered to be withdrawn before unassisted contributions made before 1998.

Manner of Determining Amount of CES Grants

 When a contribution has been made in a particular year and a CES grant in respect of the contribution would otherwise be payable at a time in a year following the particular year, the CES grant shall be reduced by the total of all amounts each of which is, in respect of another CES grant paid after the particular year and before that time, the amount by which the other CES grant would have been reduced had the CES grant been paid in the particular year.

Conditions for Payment of CES Grants

  •  (1) The Minister may pay a CES grant in respect of a contribution made to an RESP if

    • (a) the trustee enters into a trustee agreement with the Minister that applies to the RESP and includes the terms and conditions set out in section 8;

    • (b) the trustee submits, at the request of a subscriber under the RESP, an application for the CES grant

      • (i) for a contribution made after 2004, within three years after the date of the contribution, and

      • (ii) for a contribution made before 2005, no later than December 31, 2007;

    • (c) in the case where the beneficiary, in the year in which the contribution is made,

      • (i) attains 16 or 17 years of age, a minimum of $2,000 of contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary before the year in which the beneficiary attains 16 years of age,

      • (ii) attains 16 or 17 years of age, a minimum of $100 of annual contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary in at least any four years before the year in which the beneficiary attains 16 years of age,

      • (iii) attains 16 or 17 years of age and the year is 1998, the beneficiary was a beneficiary under an RESP in at least four years before 1998, or

      • (iv) attains 17 years of age and the year is 1999, the beneficiary was a beneficiary under an RESP in at least four years before 1998;

    • (d) the total of the contribution and all other contributions to RESPs made, or deemed to have been made for the purpose of Part X.4 of the Income Tax Act, in respect of the beneficiary does not exceed the RESP lifetime limit (as defined in subsection 204.9(1) of the Income Tax Act) for the year in which the contribution is made;

    • (e) in the case where the contribution is made after 1999 to an RESP that was entered into before 1999, the RESP complies at the time of the contribution with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999;

    • (f) the beneficiary is not an ineligible beneficiary; and

    • (g) the trustee complies with the terms and conditions of these Regulations and the trustee agreement that applies to the RESP.

  • (2) Subject to subsection (3), the Minister may pay an amount under subsection 5(4) of the Act if the RESP has only one beneficiary or, if there is more than one, every beneficiary is a brother or sister of every other beneficiary.

  • (3) If assisted contributions are withdrawn from an RESP after March 22, 2004, the Minister shall not pay the amount under subsection 5(4) of the Act in respect of an individual who was a beneficiary under the RESP at the time of the withdrawal throughout the period that begins on the day of the withdrawal and ends on the last day of the second year following the year in which the withdrawal is made unless

    • (a) the withdrawal is made at a time when at least one beneficiary under the RESP is eligible to receive an EAP under the RESP;

    • (b) the withdrawal is an eligible transfer; or

    • (c) the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax, otherwise payable under Part X.4 of the Income Tax Act, and, at the time of the withdrawal, the excess amount for the year is not greater than $4,000.

  • (4) At the time a CES grant is paid to an RESP, the trustee shall credit the grant account of the RESP with the amount of the CES grant paid.

  • 2007, c. 29, s. 38
  • SOR/2018-275, s. 2

Ineligible Beneficiaries (CES Grants)

  •  (1) For the purposes of paragraph 5(3)(b) of the Act and paragraph 4(1)(f) of these Regulations, if contributions that were made to an RESP before 1998 are withdrawn from the RESP after February 23, 1998, any individual who is a beneficiary of the RESP at any time during the period beginning on February 24, 1998 and ending on the day of the withdrawal is an ineligible beneficiary throughout the period that begins on the day of the withdrawal and ends on the last day of the second year following the year in which the withdrawal is made.

  • (2) Subsection (1) does not apply if

    • (a) the total of all withdrawals made under the RESP for the year does not exceed $200;

    • (b) the withdrawal is made at a time when at least one beneficiary under the RESP is eligible to receive an EAP under the RESP;

    • (c) the withdrawal is an eligible transfer; or

    • (d) the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax, otherwise payable under Part X.4 of the Income Tax Act, and, at the time of the withdrawal, the excess amount for the year is not greater than $4,000.

Conditions for Payment of CLB

  •  (1) The Minister may pay a CLB if

    • (a) the trustee enters into a trustee agreement with the Minister that applies to the RESP and includes the terms and conditions set out in section 8;

    • (b) the application for the CLB is made by the trustee, at the request of a subscriber under the RESP;

    • (c) the RESP complies at the time of the CLB payment with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999;

    • (d) the RESP has only one beneficiary or, if there is more than one, every beneficiary is a brother or sister of every other beneficiary;

    • (e) the RESP has a CLB account for each beneficiary in respect of whom a CLB is paid; and

    • (f) the trustee complies with the terms and conditions of these Regulations and the trustee agreement that applies to the RESP.

  • (2) At the time a CLB is paid to an RESP, the trustee shall credit the beneficiary’s CLB account within the RESP with the amount of the CLB paid.

  • SOR/2018-275, s. 3
 
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