Income Tax Act

Marginal note:Tax payable by individuals

• 204.1 (1) Where, at the end of any month after May, 1976, an individual has an excess amount for a year in respect of registered retirement savings plans, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of that portion of the total of all those excess amounts that has not been paid by those plans to the individual before the end of that month.

• Marginal note:Amount deemed repaid

  (2) For the purposes of subsection 204.1(1), where an amount in respect of a plan has been included in computing an individual’s income pursuant to paragraph 146(12)(b), that amount shall be deemed to have been paid to the individual by the plan at the time referred to in that paragraph.

• Marginal note:Tax payable by individuals -- contributions after 1990

  (2.1) Where, at the end of any month after December, 1990, an individual has a cumulative excess amount in respect of registered retirement savings plans, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of that cumulative excess amount.

• Marginal note:Tax payable by deferred profit sharing plan

  (3) Where, at the end of any month after May, 1976, a trust governed by a deferred profit sharing plan has an excess amount, the trust shall, in respect of that month, pay a tax under this Part equal to 1% of the excess amount.

• Marginal note:Waiver of tax

  (4) Where an individual would, but for this subsection, be required to pay a tax under subsection 204.1(1) or 204.1(2.1) in respect of a month and the individual establishes to the satisfaction of the Minister that

  • (a) the excess amount or cumulative excess amount on which the tax is based arose as a consequence of reasonable error, and

  • (b) reasonable steps are being taken to eliminate the excess,

  the Minister may waive the tax.