Section 204.1

Subsection 204.1(2.1) - Tax payable by individuals -- contributions after 1990

Administrative Policy

18 November 2014 External T.I. 2012-0457981E5 - Restorative payment to registered plan

employer restorative payment to RRSP or RPP to compensate for tort

Employer accidentally missed contributing, to a group RRSP or defined contribution pension plan, the Employer's portion on behalf of an employee for a time period. CRA stated:

In regards to an employer payment made in respect of missed contributions to an employee's registered plan, an employee would generally be liable for Part X.1 tax under subsection 204.1 of the Act where the contributions cause the employee to have a cumulative excess amount in respect of the employee's RRSPs.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(q) employer restorative payment to RRSP or RPP to compensate for tort 153
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) employer restorative payment to RRSP or RPP to compensate for tort 109
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(i) employer restorative payment to RRSP or RPP to compensate for tort 153

Subsection 204.1(4)

See Also

Hall v. The Queen, 2016 TCC 221 (Informal Procedure)

waiver of tax of mentally ill taxyaer recommended

The taxpayer had $12,029 of excess contributions in his RRSP since the end of 2008. He failed to file a Return for RRSP Excess Contributions (“Return”) on form T1-OVP for his 2008 to 2013 years as required by s. 204.3(1). The Minister assessed the taxpayer in 2015 for the tax owing and arrears interest.

Based inter alia on the taxpayer’s mental illness during the years in litigation, D’Auray J advised him to apply for a cancellation of taxes under s. 204.1(4) and that, if the Minister were to refuse to waive the tax, he could also apply to the Minister under s. 220(3.1) for waiver of the related interest. Furthermore, she recommended “that the Minister exercise her discretion for the taxation years in issue” (para. 37).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) assessment of Part I tax returns does not engage the running of statute-barring for taxes under other Parts 135
Tax Topics - Income Tax Act - Section 204.3 - Subsection 204.3(2) assessment of Pt I returns did not start Pt X.1 statute-barring period running 69