Canada Disability Savings Regulations (SOR/2008-186)

Interpretation

1 The following definitions apply in these Regulations.

Act

Act means the Canada Disability Savings Act. (Loi)

assistance holdback amount

assistance holdback amount means, at a particular time,

• (a) in the case of an RDSP that is, at the particular time, a specified disability savings plan, nil; and

• (b) in any other case, the total amount of bonds and grants paid into an RDSP within the 10-year period before the particular time, less any amount of bond or grant paid in that 10-year period that has been repaid to the Minister. (montant de retenue)

bond

bond means a Canada Disability Savings Bond. (bon)

grant

grant means a Canada Disability Savings Grant. (subvention)

issuer agreement

issuer agreement means an agreement entered into by the Minister and an issuer of an RDSP that relates to the payment of a grant or bond. (convention d’émetteur)

RDSP

RDSP means a registered disability savings plan under section 146.4 of the Income Tax Act. (REEI)

Requirements for Payment of Grant

2 The Minister may pay a grant into an RDSP in respect of a contribution made to and not withdrawn from the RDSP if

• (a) the issuer enters into an issuer agreement with the Minister that applies to the RDSP and includes the terms and conditions set out in section 4;

• (b) the issuer submits, at the request of the holder of the RDSP, an application for the grant to the Minister;

• (c) the beneficiary is less than 49 years of age at the end of the year preceding the year in which the contribution is made;

• (d) the total of the contribution and all other contributions made to an RDSP of the beneficiary does not exceed $200,000;

• (e) the beneficiary is a DTC-eligible individual in respect of the year in which the contribution is made, and in respect of the year or years to which the contribution is allocated; and

• (f) the issuer complies with the requirements of these Regulations and the terms and conditions of the issuer agreement that applies to the RDSP.

Requirements for Payment of Bond

3 The Minister may pay a bond into an RDSP if

• (a) the issuer enters into an issuer agreement with the Minister that applies to the RDSP and includes the terms and conditions set out in section 4;

• (b) the holder requests, no later than December 31 of the year in which the beneficiary attains 49 years of age, that the issuer submit an application for the bond;

• (c) the issuer submits an application for the bond to the Minister;

• (d) the beneficiary is less than 49 years of age at the end of the year preceding the year for which the bond is payable;

• (e) the beneficiary is a DTC-eligible individual in respect of the year for which the bond is payable; and

• (f) the issuer complies with the requirements of these Regulations and the terms and conditions of the issuer agreement that applies to the RDSP.

Terms and Conditions of Issuer Agreements

4 Every issuer agreement shall include the following terms and conditions:

• (a) the issuer shall provide the Minister with any information that the Minister requires for the purposes of the Act and these Regulations;

• (b) the issuer shall maintain records and books of account that relate to the amounts paid under the Act in the form and containing any information that the Minister requires to ensure compliance with the Act and these Regulations;

• (c) the issuer shall allow the Minister access to all documents and other information that the Minister requires for auditing amounts paid or repaid under the Act and these Regulations;

• (d) the issuer shall report to the Minister annually or within any other period set out in the issuer agreement with respect to

  • (i) all contributions, payments and transfers to, and all payments and transfers from, an RDSP,

  • (ii) the assistance holdback amount, and

  • (iii) any other information related to the RDSP that is specified in the issuer agreement;

• (e) the issuer shall submit all information to the Minister in a format and manner that is acceptable to the Minister;

• (f) the issuer shall not charge fees related to the RDSP against the assistance holdback amount of the RDSP;

• (g) the issuer shall, when transferring the property of the RDSP, provide to the issuer of the new plan all information that it is required to provide in accordance with paragraph 146.4(8)(c) of the Income Tax Act; and

• (h) the issuer shall repay any amount required to be repaid to the Minister under these Regulations and shall do so within the period specified in the agreement.

Repayments

• 5 (1) Subject to section 5.1, an issuer of an RDSP shall repay to the Minister, within the period set out in the issuer agreement, the amount referred to in subsection (2) if

  • (a) the RDSP is terminated;

  • (b) the plan ceases to be an RDSP as a result of the application of paragraph 146.4(10)(a) of the Income Tax Act; or

  • (c) [Repealed, 2021, c. 23, s. 95]

  • (d) the beneficiary dies.

• (2) The amount that must be repaid as a result of the occurrence of an event described in subsection (1) is the lesser of

  • (a) the fair market value, immediately before the occurrence, of the property held by the RDSP, and

  • (b) the assistance holdback amount of the RDSP immediately before the occurrence.

• (3) Despite subsections (1) and (2), if the beneficiary of an RDSP that is a specified disability savings plan dies, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, any portion of an amount paid into the RDSP as a grant or bond within the 10-year period preceding the time of the death that remains in the RDSP at that time.

• (4) This section does not apply if the event described in subsection (1) or (3) occurs after the calendar year in which the beneficiary attains 59 years of age.

5.1 If an event described in paragraph 5(1)(a), (b) or (d) occurs while the beneficiary of an RDSP is no longer a DTC-eligible individual, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the lesser of

• (a) the fair market value, immediately before the occurrence of the event, of the property held by the RDSP, and

• (b) the amount determined by the formula

  A + B – C

  where

  A

  is

  • (i) if the event occurs before the calendar year in which the beneficiary attains 51 years of age, the total amount of grants and bonds paid into the RDSP within the 10-year period before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period,

  • (ii) if the event occurs after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual before the calendar year in which they attained 50 years of age, the total amount of grants and bonds paid into the RDSP within the period (expressed in number of years) determined by the following formula that ended before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period:

    60 – n

    where

    n

    is the beneficiary’s age on — or the age that they would have attained by — December 31 of the calendar year in which the event occurs,

  • (iii) if the event occurs after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual after the calendar year in which they attained 49 years of age, the total amount of grants and bonds paid into the RDSP during the period beginning on January 1 of the year that is 10 years before the year in which the event occurs and ending on the day preceding the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period, or

  • (iv) if the event occurs after the calendar year in which the beneficiary attains 59 years of age, nil,

  B

  is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the event occurs, and

  C

  is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.

5.2 [Repealed, 2021, c. 23, s. 97]

• 5.3 (1) Subject to section 5.4, if a disability assistance payment is made, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:

  • (a) $3 for every $1 of disability assistance payment made,

  • (b) the fair market value, immediately before the making of the disability assistance payment, of the property held by the RDSP, and

  • (c) the assistance holdback amount of the RDSP immediately before the making of the disability assistance payment.

• (2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the 10-year period preceding the making of the disability assistance payment, in the order in which they were paid into it.

• (3) Subsection (1) does not apply in respect of any disability assistance payment made after the calendar year in which the beneficiary attains 59 years of age.

• 5.4 (1) If a disability assistance payment is made to a beneficiary who is no longer a DTC-eligible individual, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:

  • (a) $3 for every $1 of disability assistance payment made,

  • (b) the fair market value, immediately before the making of the disability assistance payment, of the property held by the RDSP, and

  • (c) the amount determined by the formula

    A + B – C

    where

    A

    is

    • (i) if the disability assistance payment is made before the calendar year in which the beneficiary attains 51 years of age, the total amount of grants and bonds paid into the RDSP within the 10-year period before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period,

    • (ii) if the disability assistance payment is made after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual before the calendar year in which they attained 50 years of age, the total amount of grants and bonds paid into the RDSP within the period (expressed in number of years) determined by the following formula that ended before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period:

      60 – n

      where

      n

      is the beneficiary’s age on December 31 of the calendar year in which the disability assistance payment is made,

    • (iii) if the disability assistance payment is made after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual after the calendar year in which they attained 49 years of age, the total amount of grants and bonds paid into the RDSP during the period beginning on January 1 of the year that is 10 years before the year in which the disability assistance payment is made and ending on the day preceding the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period, or

    • (iv) if the disability assistance payment is made after the calendar year in which the beneficiary attains 59 years of age, nil,

    B

    is the amount of any grant or bond that is paid into the RDSP during the period beginning on the day on which the beneficiary ceased to be a DTC-eligible individual and ending on the day on which the disability assistance payment is made, and

    C

    is the amount of any grant or bond that has been repaid since the day on which the beneficiary ceased to be a DTC-eligible individual.

• (2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the applicable period referred to in the description of A in paragraph (1)(c) and within the period referred to in the description of B in paragraph (1)(c), in the order in which they were paid into it.

• (3) Subsection (1) does not apply in respect of any disability assistance payment made in the calendar year in which the beneficiary of the RDSP attains 60 years of age, or in any subsequent calendar year, if the total amount of disability assistance payments made to the beneficiary in that calendar year is less than or equal to the amount determined in accordance with paragraph 146.4(4)(l) of the Income Tax Act for that calendar year.

• 6 (1) An issuer of an RDSP shall repay to the Minister, within the period set out in the issuer agreement, any portion of an amount paid into the RDSP as a grant or bond to which there was no entitlement under the Act or these Regulations.

• (2) A beneficiary of an RDSP shall repay to the Minister any portion of a disability assistance payment attributable to a grant payment or bond payment to which the beneficiary was not entitled under the Act or these Regulations.

7 For the purposes of calculating an amount to be repaid under these Regulations with respect to amounts that are transferred from a prior RDSP to a new RDSP in accordance with subsection 146.4(8) of the Income Tax Act, all amounts of bonds, grants and contributions transferred are considered to have been paid into or made to the new RDSP as of the day on which the amounts were paid into or made to the prior RDSP.

Waiver — Undue Hardship

8 For the purposes of section 11 of the Act, the Minister may waive the requirement in subparagraph 6(2)(a)(i) or 7(2)(a)(i) or (b)(i) of the Act that the individual be at least 18 years of age on December 31 of the year preceding the particular year if the beneficiary is not a qualified dependant of an eligible individual.

Authorized Collection of Information

9 For the purposes of section 15 of the Act, the following are prescribed information:

• (a) the beneficiary’s name, address, date of birth, social insurance number and, if applicable, date of death;

• (b) if the holder is an individual, the holder’s name, address and social insurance number;

• (c) if the holder is a department, agency or institution that maintains the beneficiary, its business name, business number and address;

• (d) the name and address of the issuer;

• (e) in relation to any specific RDSP, the number assigned to the corresponding plan in respect of which written notification was given by the Minister of National Revenue in accordance with paragraph 146.4(2)(a) of the Income Tax Act;

• (f) the number assigned to the disability savings plan entered into between the issuer and the holder;

• (g) the day on which the disability savings plan between the issuer and the holder was entered into;

• (h) the day on which the disability savings plan entered into between the issuer and the holder ends;

• (i) the date and amount of contributions paid into the RDSP;

• (j) the total amount of contributions paid into the RDSP;

• (k) the amount of total earnings in the RDSP;

• (l) if there is a transfer of amounts from a prior RDSP to a new RDSP,

  • (i) the amounts transferred as well as the book value and fair market value of those amounts,

  • (ii) the transfer date,

  • (iii) the name and address of the new issuer,

  • (iv) with respect to both the prior RDSP and new RDSP, the number assigned to the corresponding plan in respect of which written notification was given by the Minister of National Revenue in accordance with paragraph 146.4(2)(a) of the Income Tax Act, and

  • (v) with respect to both the prior RDSP and new RDSP, the number assigned to the disability savings plan entered into between the issuer and the holder;

• (m) if there is a new holder of an RDSP after the RDSP is entered into, the new holder’s name, address and social insurance number or business number, as the case may be, and the day on which they became the new holder of the RDSP;

• (n) the disability assistance payments made, indicating the taxable and non-taxable portions of the payments and the date of each payment made;

• (o) the fair market value of the RDSP;

• (p) if a contribution is withdrawn subsequent to a waiver granted by the Minister of National Revenue in accordance with paragraph 146.4(12)(c) of the Income Tax Act, the amount and date of the contribution withdrawn; and

• (q) whether or not a beneficiary is a DTC-eligible individual.

Coming into Force

Footnote ^*10 These Regulations come into force on the day on which section 136 of the Budget and Economic Statement Implementation Act, 2007, chapter 35 of the Statutes of Canada 2007, comes into force.

• Return to footnote ^*[Note: Regulations in force December 1, 2008, see SI/2008-63.]