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The Canada Revenue Agency (CRA) is finding an increasing number of questionable registered retirement savings
plan (RRSP) and registered retirement income fund (RRIF) tax-free withdrawal schemes. The CRA is warning that
investing in such schemes could result in you losing your entire retirement savings to unscrupulous promoters, as
well as a reassessment of your tax returns.
Stats and facts
• To date, the CRA has reassessed over 5,000 investors who participated in these schemes resulting in additional
taxable income of approximately $250 million.
• Additional audits of taxpayers and RRSP and RRIF investments are ongoing, and more audits are being initiated.
Questionable RRSP/RRIF schemes Taxpayers should avoid schemes that promise the following:
• withdrawal of funds from an RRSP or RRIF without paying tax—promoters often promise to return part of the
taxpayer’s investment by 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 invested in 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.
Taxpayers should avoid these schemes for two reasons:
1. These arrangements can put their retirement savings at risk. In some cases, the promoter walks away with all the
funds and cannot be found. Many Canadians have lost their entire retirement savings to unscrupulous promoters by
participating in such arrangements.
2. The full amount of any withdrawal or ineligible investment is included in the taxpayer’s income in the year the
investment was made or the withdrawal occurred, even when the savings are lost to the promoters. Interest and
penalties may also be levied for amounts not reported.
These schemes are promoted to look legitimate. The promotion of these schemes usually appears very professional, and makes the schemes appear legitimate. Various promotional methods may be used, such as the Internet, local newspaper advertisements, and/or promotional meetings.
Promoters often provide opinion letters from professionals that give the impression that the letter writer endorses the
scheme. These letters should not be interpreted as providing any assurance that these schemes do what they claim to
be doing or that the promised tax benefits are in accordance with the Income Tax Act. Get professional, independent advice. If you are thinking about investing in one of these arrangements, it’s very important that you get independent legal
and tax advice. Independent advice means advice from a tax professional who is not connected to the scheme or
Come to us before we come to you.
The CRA has increased its RRSP compliance activities to include promoter audits and audits of trust companies. If you have invested in one of these arrangements and wish to correct previous omissions or errors, you can do so through the CRA’s Voluntary Disclosures Program. If you make a full disclosure before any compliance enforcement action is started, you may only have to pay the taxes owing plus interest. More information on the
Voluntary Disclosures Program is available at www.cra.gc.ca/voluntarydiclosures.
If you encounter a questionable scheme, please call 1-800-267-3100 (English).
Questions and answers on RRSP tax-free withdrawal schemes are available on our Web site, at
What woman doesn’t like the message delivered when a sparkly rock of an engagement ring is placed on her finger? Even if she doesn’t want to marry the man, it’s the ultimate form of flattery and pretty snazzy fashion. But now, there’s the Inner Message engagement ring that not only implies that he wants to spend the rest of his life with you, it says it!
No, the Inner Message Ring isn’t some tacky fashion that doubles as a recording device, it’s a pretty romantic, classic piece of jewelry and the twist is that what makes it unique isn’t visible when it’s being worn. Perhaps designed by a man who didn’t want to use up his daily communication quota with a length marriage proposal; or better yet, by a truly romantic at heart; the Inner Message Ring engraves a temporary message on the finger of the wearer.
The fun fashionable jewelry could make for a unique and romantic marriage proposal. Imagine, putting the Inner Message Ring on her hand and presenting it as a promise ring; then next time she takes it off she’ll get a thrilling surprise when imprinted in her skin is “marry me”.
The Inner Message Rings, which are also available with the message “always” are designed by Yoon Jung Yung of South Korea.
Check out the link here.
This trip is valued at over $85.00 and is exclusively for members only!
Friday May 22, 2009
Discovering the Lilacs in Springtime!
Sit back, relax and enjoy the spectacular view as we travel east out of the city to Northumberland County! Your day will be packed with free gifts, prize draws and adventure as we stop at the Empire Cheese Factory (for free samples and a chance to purchase their fresh cheese), the World’s Finest Chocolate Factory, Glover’s Farm Market and a tour of Oak Heights Winery. A delicious buffet lunch is also included at Chubby’s Restaurant.
The tour bus will leave from Wood Street (behind 14 Carlton Street) at 8:30am and will return at approximately 6pm, depending on the traffic.
As space is very limited, to avoid disappointment please register today by calling our offices at 416-542-2522!
Exec/Ult Suite Members $45.00
Standard Members $65.00
To find out your member status please call our offices at 416-542-2522!
Please call to register your spot today! Last year’s members only golf day sold out in record time. To avoid disappointment please do not delay! For more information please contact either of our two offices 14 Carlton Street or 500 Commissioners or call 416-542-2522.
PLACE: Lakeridge Links Golf Course DATE: Monday August 10, 2009
TIME: 12:00 P.M. Shotgun Start FORMAT: Four Person Scramble
COST: Executive/Ultimate Members $40.00
Non-Executive/Ultimate Members $80.00
Cost includes Greens Fee, Power Cart and Scrumptious ½ Chicken Dinner
(Vegetarian Available with advance notice)
To determine your “MEMBER STATUS” or to receive information on qualifying for “EXECUTIVE/ULTIMATE MEMBERSHIP”, contact TEUCU Staff at 416-542-2522