Canada Disability Savings Regulations
5 (1) Subject to sections 5.1 and 5.2, an issuer of an RDSP shall repay to the Minister, within the period set out in the issuer agreement, the amount referred to in subsection (2) if
(a) the RDSP is terminated;
(b) the plan ceases to be an RDSP as a result of the application of paragraph 146.4(10)(a) of the Income Tax Act;
(c) the beneficiary ceases to be a DTC-eligible individual, unless they are the subject of an election made under subsection 146.4(4.1) of the Income Tax Act; or
(d) the beneficiary dies.
(2) The amount that must be repaid as a result of the occurrence of an event described in subsection (1) is the lesser of
(a) the fair market value, immediately before the occurrence, of the property held by the RDSP, and
(b) the assistance holdback amount of the RDSP immediately before the occurrence.
(3) Despite subsections (1) and (2), if the beneficiary of an RDSP that is a specified disability savings plan dies or ceases to be a DTC-eligible individual, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, any portion of an amount paid into the RDSP as a grant or bond within the 10-year period preceding the time of the death or cessation that remains in the RDSP at that time.
- 2011, c. 15, s. 8
- 2012, c. 31, s. 72
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