What is an RRSP scheme?

An RRSP scheme is usually a type of investment promotion offering a "tax-free" withdrawal to access directly or indirectly your RRSP funds. Some observed examples of RRSP schemes have included:

• withdrawal of funds from an RRSP or a registered retirement income fund (RRIF) without paying tax (promoters often promise to return part of the taxpayer's investment using offshore debit or credit cards, offshore bank accounts, or loan-back arrangements);
• immediate access to assets in "locked-in" RRSPs or RRIFs;
• income tax receipts providing deductions of three or more times the amount contributed to an RRSP; and
• unrealistic returns on investments.

Typically, promoters of these questionable schemes direct the owner of a self-directed RRSP or RRIF to purchase a particular investment through a specific trustee. The particular investment could be shares in a company, units of participation in a co-operative, a mortgage, or other types of investments.

Related links

• Tax Alert

Date modified:

2015-12-03