Canada Disability Savings Regulations

5.2 If an election made under subsection 146.4(4.1) of the Income Tax Act in respect of the beneficiary of an RDSP ceases to be valid because of paragraph 146.4(4.2)(b) of that Act, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the lesser of

• (a) the fair market value, immediately before the election ceases to be valid, of the property held by the RDSP, and

• (b) the amount determined by the formula

  A + B – C

  where

  A

  is the assistance holdback amount of the RDSP immediately before the beneficiary ceased to be a DTC-eligible individual,

  B

  is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the election ceases to be valid, and

  C

  is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.