Tax payable where inadequate consideration

This tax applies for a calendar year if, in the year, an RDSP trust:

• disposes of property for an amount less than the FMV of the property at the time of the disposition, or for no amount at all; or
• acquires property for an amount greater than the FMV of the property at the time of acquisition.

The holder of an RDSP is liable for the tax. If there is more than one holder of the RDSP, they are jointly responsible for the tax.

Amount of tax payable

The amount of tax payable for each disposition or acquisition is:

• the amount by which the FMV differs from the consideration; or
• if there is no consideration, the amount of the FMV.

Payment of tax

If the holder of an RDSP is liable for this tax, the holder must file Form RC4532, Individual Tax Return for Registered Disability Savings Plan (RDSP), with a payment for any balance no later than 90 days after the end of the calendar year.

Date modified:

2016-01-12