CRA Announces 2011 Budget Changes Relating to Financial Institutions’ Reporting and Remittance Requirements as RRSP and RRIF Carriers

The Canada Revenue Agency's (CRA) Registered Plans Directorate has announced 2011 Budget changes relating to financial institutions' reporting and remittance requirements as registered retirement savings plan (RRSP) and registered retirement income fund (RRIF) carriers. The 2011 federal budget included several measures to enhance the existing RRSP and RRIF anti-avoidance rules. Legislation to implement these measures was contained in Bill C‑13, which received Royal Assent on December 15, 2011. The new rules largely adopt the existing tax-free savings account (TFSA) rules for nonqualified investments, prohibited investments and advantages, with some modifications. CRA has released questions and answers to assist RRSP issuers and RRIF carriers (generally referred to as "financial institutions") in better understanding when and how the new rules apply and how the annuitant may be affected, and to inform institutions of their responsibilities under the new rules.