Canada Education Savings Regulations (SOR/2005-151)

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

Waiver — Undue Hardship

 The Minister may, for the purposes of section 9.1 of the Act, waive the requirement

  • (a) to designate a trust under subsection 5(7) of the Act;

  • (b) to apply for a CLB before the beneficiary reaches 21 years of age under subsection 6(1) of the Act;

  • (c) to designate a trust under subsection 6(4) of the Act;

  • (d) to provide a Social Insurance Number or business number under paragraph 7(b) of the Act; and

  • (e) to apply for CES grants within the time limits set out in paragraph 4(1)(b).

Terms and Conditions of Trustee Agreements

 Every trustee agreement shall include the following terms and conditions:

  • (a) the trustee shall provide the Minister with any information that the Minister requires for the purposes of the Act and these Regulations;

  • (b) the trustee shall maintain records and books of account that relate to the amounts paid under the Act in such form and containing such information as the Minister requires to enable the Minister to determine whether the amounts will be paid or are required to be repaid;

  • (c) the trustee shall allow the Minister access to all documents and other information that the Minister requires for auditing payments or repayments made under the Act or these Regulations;

  • (d) the trustee shall report to the Minister

    • (i) all contributions and transfers to, and all withdrawals and transfers from, an RESP that are made after 1997,

    • (ii) the portion of EAPs made from the RESP that is attributable to amounts paid under the Act, and

    • (iii) any other information related to the RESP that is specified in the trustee agreement;

  • (e) the reporting referred to in paragraph (d) shall be done annually or within any shorter period that is set out in the trustee agreement;

  • (f) the trustee shall submit all information to the Minister in a format and manner that is acceptable to the Minister;

  • (g) the trustee may make a distribution from an RESP only if, at the time immediately after the distribution, the fair market value of the property held in connection with the RESP would not be less than the total of the balance in the grant account and all CLB accounts of the RESP, unless the distribution is an EAP made to a beneficiary of the RESP and all of the EAP is attributable to CES grants and to a CLB;

  • (h) the trustee shall repay any amount required to be repaid to the Minister under these Regulations, other than the amounts payable by a beneficiary under subsection 12(2) and section 13; and

  • (i) the trustee shall not charge fees related to the RESP against the balance of the grant account or the CLB account of any beneficiary of the RESP.

Terms and Conditions of Agreements with Promoters

 Every agreement between the Minister and the promoter of an RESP shall include the following terms and conditions:

  • (a) the promoter shall provide the trustee with any information that the Minister requires for the purposes of the Act and these Regulations;

  • (b) the promoter shall report to the Minister any information related to the RESP that is specified in the agreement;

  • (c) the promoter shall submit all information to the Minister in a format and manner that is acceptable to the Minister;

  • (d) the promoter shall allow the Minister access to all documents and other information related to RESPs that the Minister requires for audit purposes; and

  • (e) the promoter shall not charge fees related to the RESP against the balance of the grant account or the CLB account of any beneficiary in the RESP.

Apportionment of EAP

  •  (1) Subject to subsection (3), the portion of an EAP made to a beneficiary under an RESP that is attributable to a CLB is

    • (a) if there is accumulated income in the RESP, the amount determined by the formula

      A × B/(C - D - E)

      where

      A
      is the amount of the EAP,
      B
      is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,
      C
      is the fair market value of the property held in connection with the RESP, determined immediately before the EAP is made or at an earlier time that is agreed to in the trustee agreement that applies to the RESP,
      D
      is the total of all contributions made to the RESP before the EAP is made that have not been withdrawn, and
      E
      is the total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made; and
    • (b) if there is no accumulated income in the RESP, the amount determined by the formula

      A × B/(B + F + G)

      where

      A
      is the amount of the EAP,
      B
      is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,
      F
      is the balance in the grant account of the RESP immediately before the EAP is made, and
      G
      is the total of all amounts paid into the RESP under a designated provincial program.
  • (2) Subject to subsections (3) and (4), the portion of an EAP made to a beneficiary under an RESP that is attributable to CES grants is

    • (a) if there is accumulated income in the RESP, the lesser of

      • (i) the amount determined by the formula

        A × F/(C - D - E)

        where

        A
        is the amount of the EAP,
        F
        is the balance in the grant account of the RESP immediately before the EAP is made,
        C
        is the fair market value of the property held in connection with the RESP, determined immediately before the EAP is made or at an earlier time that is agreed to in the trustee agreement that applies to the RESP,
        D
        is the total of all contributions made to the RESP before the EAP is made that have not been withdrawn, and
        E
        is the total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made, and
      • (ii) the amount, if any, by which $7,200 exceeds the aggregate of all amounts determined under subparagraphs (i) and (b)(i) in respect of an EAP previously made under the RESP to the beneficiary; and

    • (b) if there is no accumulated income in an RESP, the lesser of

      • (i) the amount determined by the formula

        A × F/(B + F + G)

        where

        A
        is the amount of the EAP,
        B
        is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,
        F
        is the balance in the grant account of the RESP immediately before the EAP is made, and
        G
        is the total of all amounts paid into the RESP under a designated provincial program, and
      • (ii) the amount, if any, by which $7,200 exceeds the aggregate of all amounts determined under subparagraph (a)(i) and subparagraph (i) in respect of an EAP previously made under the RESP to the beneficiary.

  • (3) The portion of an EAP that is attributable to CES grants or a CLB is nil where the beneficiary is not resident in Canada at the time the EAP is made.

  • (4) The portion of an EAP made to a beneficiary under an RESP that allows more than one beneficiary at any one time that is attributable to CES grants is nil where the beneficiary became a beneficiary under the RESP after attaining 21 years of age, unless, before attaining 21 years of age, the beneficiary had been a beneficiary under another RESP that allows more than one beneficiary at any one time.

  • (5) Where a CES grant or a CLB is paid as a portion of an EAP to a beneficiary under an RESP, the trustee shall debit the grant account or the CLB account of the RESP, as the case may be, at the time of the payment with the amount of CES grant or CLB paid.

  • 2010, c. 12, s. 32

Repayments

  •  (1) Subject to subsection (2), if assisted contributions are withdrawn from an RESP, other than by way of transfer to another RESP, when no beneficiary under the RESP is eligible to receive an EAP, the trustee under the RESP shall, within the period set out in the trustee agreement that applies to the RESP, repay to the Minister an amount equal to the lesser of

    • (a) the amount determined by the formula

      A/B × C

      where

      A
      is the balance in the grant account of the RESP immediately before the withdrawal,
      B
      is the balance of the total assisted contributions in the RESP immediately before the withdrawal, and
      C
      is the amount of assisted contributions withdrawn, and
    • (b) the balance in the grant account of the RESP immediately before the withdrawal.

  • (2) A trustee under an RESP is not required to repay any amount of a CES grant paid in respect of a beneficiary if there is a withdrawal of contributions and the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax 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.

  • (3) A trustee under an RESP shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, an amount referred to in subsection (4), if

    • (a) the RESP is terminated;

    • (b) the registration of the RESP is revoked;

    • (c) a payment described in paragraph (b) or (d) of the definition trust in subsection 146.1(1) of the Income Tax Act is made under the RESP;

    • (d) an EAP is made under the RESP to an individual who is not a beneficiary under the RESP;

    • (e) property is transferred from the RESP to another RESP except where the transfer is an eligible transfer; or

    • (f) an individual becomes a beneficiary under the RESP in place of another beneficiary, except where paragraph 204.9(4)(b) of the Income Tax Act applies in respect of the replacement.

  • (4) The amount that must be repaid as the result of an occurrence of an event described in subsection (3) is the lesser of

    • (a) the total of the balance in the grant account and all of the CLB accounts of the RESP immediately before the time of the occurrence, and

    • (b) the fair market value, immediately before the time of the occurrence, of the property held in connection with the RESP.

  • (5) If an amount has been paid into an RESP under subsection 5(4) of the Act and an individual, who is not a brother or sister of all of the other beneficiaries under the RESP, becomes a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, the lesser of

    • (a) the balance of the grant account of the RESP immediately before the individual becomes a beneficiary, and

    • (b) the fair market value of the property held in connection with the RESP immediately before the individual becomes a beneficiary.

  • (6) If a beneficiary in respect of whom a CLB was paid into an RESP ceases to be a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, the lesser of

    • (a) the balance of the beneficiary’s CLB account immediately before the beneficiary ceases to be a beneficiary, and

    • (b) the fair market value, immediately before the beneficiary ceases to be a beneficiary, of the property held in connection with the RESP less the total of the balances of the CLB accounts in the RESP for all other beneficiaries.

  • (7) If a CLB has been paid into an RESP and an individual, who is not a brother or sister of every other beneficiary under the RESP, becomes a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP the lesser of

    • (a) the total of the balances of the CLB accounts in the RESP immediately before the individual becomes a beneficiary, and

    • (b) the fair market value, immediately before the individual becomes a beneficiary, of the property held in connection with the RESP.

  • (8) If an amount of a CLB or CES grant is repaid to the Minister, the trustee shall debit that amount from the CLB account or grant account, as the case may be, at the time of the repayment.

 
Date modified: