Section 204.9

Grandfather A, who resides in the U.S., subscribed to a registered education saving plan (‘RESP”) for his Canadian-resident granddaughter, but now wishes for the subscriber to be changed to his son (the girl’s father). In the course of indicating that the RESP provisions “allow the transfer of amounts from one RESP to another,” CRA stated:

[F]or purposes of Part X.4, after the transfer, Grandfather A would be considered to be a subscriber of the receiving RESP by virtue of paragraph 204.9(5)(e). That could result in tax being payable under subsection 204.91(1) after the transfer, if, for example, there was an excess before the transfer, or if an excess arose in the year of the transfer and Grandfather A had a "subscriber’s gross cumulative excess", within the meaning of subsection 204.91(1), in respect of that excess.