You may be entitled to a refund of the 50% tax on non qualified or prohibited investments if the investment was disposed of, or ceased to be a non-qualified or prohibited investment, before the end of the calendar year after the year in which the tax arose (or such later time as is permitted by the Minister of National Revenue).

However, no refund will be issued if it is reasonable to expect that you knew, or should have known, that the investment was or would become a non-qualified or a prohibited investment.

The refund applies to the 50% tax on non-qualified or prohibited investments, but not to the 100% tax on advantages.

How to claim a refund

To claim a refund, you must:

• send your request in writing (you can attach the letter to Form RC339)
• attach the appropriate documents detailing the information relating to the acquisition and disposition of the non-qualified or prohibited property. The documents must contain the following:
  • name and description of the property
  • number of shares or units
  • date the property was acquired or became non-qualified or prohibited property
  • date of the disposition or the date that the property became qualified or ceased to be prohibited

Forms and publications

• Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs