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Canada Education Savings Regulations (SOR/2005-151)

Regulations are current to 2023-09-19 and last amended on 2022-05-20. Previous Versions

Repayments

  •  (1) Subject to subsection (2), if assisted contributions are withdrawn from an RESP, other than by way of transfer to another RESP, when no beneficiary under the RESP is eligible to receive an EAP, the trustee under the RESP shall, within the period set out in the trustee agreement that applies to the RESP, repay to the Minister an amount equal to the lesser of

    • (a) the amount determined by the formula

      A/B × C

      where

      A
      is the balance in the grant account of the RESP immediately before the withdrawal,
      B
      is the balance of the total assisted contributions in the RESP immediately before the withdrawal, and
      C
      is the amount of assisted contributions withdrawn, and
    • (b) the balance in the grant account of the RESP immediately before the withdrawal.

  • (2) A trustee under an RESP is not required to repay any amount of a CES grant paid in respect of a beneficiary if there is a withdrawal of contributions and the withdrawal is all or part of an excess amount of contributions to reduce the amount of tax payable under Part X.4 of the Income Tax Act, and, at the time of the withdrawal, the excess amount for the year is not greater than $4,000.

  • (3) A trustee under an RESP shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, an amount referred to in subsection (4), if

    • (a) the RESP is terminated;

    • (b) the registration of the RESP is revoked;

    • (c) a payment described in paragraph (b) or (d) of the definition trust in subsection 146.1(1) of the Income Tax Act is made under the RESP;

    • (d) an EAP is made under the RESP to an individual who is not a beneficiary under the RESP;

    • (e) property is transferred from the RESP to another RESP except where the transfer is an eligible transfer; or

    • (f) an individual becomes a beneficiary under the RESP in place of another beneficiary, except where paragraph 204.9(4)(b) of the Income Tax Act applies in respect of the replacement.

  • (4) The amount that must be repaid as the result of an occurrence of an event described in subsection (3) is the lesser of

    • (a) the total of the balance in the grant account and all of the CLB accounts of the RESP immediately before the time of the occurrence, and

    • (b) the amount determined by the formula

      (C × Y)/(Y + G)

      where

      C
      is the fair market value of the property held in the RESP, determined immediately before the time of the occurrence,
      Y
      is the total balance in the grant account and all of the CLB accounts of the RESP immediately before the time of the occurrence, and
      G
      is the total balance in the RESP immediately before the time of the occurrence, of the amounts that were paid into the RESP under a designated provincial program.
  • (5) If an amount has been paid into an RESP under subsection 5(4) of the Act and an individual, who is not a brother or sister of all of the other beneficiaries under the RESP, becomes a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, the lesser of

    • (a) the balance of the grant account of the RESP immediately before the individual becomes a beneficiary, and

    • (b) the fair market value of the property held in connection with the RESP immediately before the individual becomes a beneficiary.

  • (6) If a beneficiary in respect of whom a CLB was paid into an RESP ceases to be a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP, the lesser of

    • (a) the balance of the beneficiary’s CLB account immediately before the beneficiary ceases to be a beneficiary, and

    • (b) the fair market value, immediately before the beneficiary ceases to be a beneficiary, of the property held in connection with the RESP less the total of the balances of the CLB accounts in the RESP for all other beneficiaries.

  • (7) If a CLB has been paid into an RESP and an individual, who is not a brother or sister of every other beneficiary under the RESP, becomes a beneficiary under the RESP, the trustee shall repay to the Minister, within the period set out in the trustee agreement that applies to the RESP the lesser of

    • (a) the total of the balances of the CLB accounts in the RESP immediately before the individual becomes a beneficiary, and

    • (b) the fair market value, immediately before the individual becomes a beneficiary, of the property held in connection with the RESP.

  • (8) If an amount of a CLB or CES grant is repaid to the Minister, the trustee shall debit that amount from the CLB account or grant account, as the case may be, at the time of the repayment.

  •  (1) A trustee of an RESP shall, within the period set out in the trustee agreement that applies to the RESP, repay to the Minister any portion of an amount paid as a CES grant or CLB to which the trustee was not entitled under the Act or these Regulations.

  • (2) A beneficiary of an RESP shall repay to the Minister any portion of an EAP attributable to a CES grant or CLB to which the beneficiary was not entitled under the Act or these Regulations.

 If the aggregate of all amounts that a beneficiary has received as an EAP that is attributable to CES grants exceeds $7,200, the beneficiary shall repay the excess to the Minister.

 Any amount of CLB repaid to the Minister under section 11 may be paid into an RESP in respect of the same beneficiary if the conditions of payment of a CLB are otherwise met.

Additional Payment

 For the purpose of subsection 6(5) of the Act, the Minister may pay $25 into the trust when the Minister pays the amount under paragraph 6(2)(a) of the Act.

Eligible Transfers

  •  (1) For the purpose of these Regulations, the transfer of an amount, other than an amount in a CLB account, from an RESP to another RESP is an eligible transfer

    • (a) if

      • (i) any beneficiary under the receiving RESP is, immediately before the transfer, a beneficiary under the transferring RESP, or

      • (ii) a parent of a beneficiary under the receiving RESP was a parent of an individual who was, immediately before the transfer, a beneficiary under the transferring RESP and

        • (A) the receiving RESP is an RESP that allows more than one beneficiary at any one time, or

        • (B) in any other case, the beneficiary under the receiving RESP had not attained 21 years of age at the time the receiving RESP was entered into;

    • (b) if, at the time of the transfer,

      • (i) the receiving RESP has only one beneficiary or, if there is more than one, every beneficiary is a brother or sister of every other beneficiary, or

      • (ii) no payments have been made into the transferring RESP under subsection 5(4) of the Act; and

    • (c) if the receiving RESP complies with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999.

  • (2) If less than all of the property, other than the property in a CLB account or any amount paid under a designated provincial program, held in connection with an RESP is transferred to another RESP, the assisted contributions, unassisted contributions, CES grants and accumulated income are considered to be transferred in the same proportion of their total balances as the value of the property transferred is to the total value of the property, other than the value of the property in a CLB account or any amount paid under a designated provincial program, in the RESP at the time of the transfer.

  • (3) If property held in connection with an RESP, other than the property in a CLB account, is transferred to another RESP, the amount of CES grant that is transferred or considered to be transferred under subsection (2) is, at the time of the transfer,

    • (a) debited from the grant account of the transferring RESP; and

    • (b) credited to the grant account of the receiving RESP.

  • (4) The amount of the CES grant that is transferred or is considered to be transferred under subsection (2) is considered to have been paid to the trustee under the receiving RESP.

  • (5) The assisted contributions or unassisted contributions that are transferred or are considered to be transferred under subsection (2) are considered to have been made to the receiving RESP.

  •  (1) The transfer of an amount in a CLB account of an RESP to the CLB account of another RESP is an eligible transfer if

    • (a) both CLB accounts are in respect of the same beneficiary;

    • (b) the receiving RESP complies with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999; and

    • (c) at the time of the transfer, the receiving RESP has only one beneficiary or, where there is more than one, every beneficiary is a brother or sister of every other beneficiary.

  • (2) If an amount held in connection with a CLB account is transferred to another RESP, the amount that has been transferred is, at the time of the transfer,

    • (a) debited from the CLB account of the transferring RESP; and

    • (b) credited to the CLB account of the receiving RESP.

  • (3) The amount of a CLB that is transferred from an RESP is considered to have been paid to the trustee under the receiving RESP.

  • SOR/2018-275, s. 7(F)

Sharing

  •  (1) CES grants and the earnings generated on them may only be shared among the beneficiaries of the RESP.

  • (2) A CLB shall not be shared among beneficiaries of the RESP. However, the earnings generated on a CLB may be shared among the beneficiaries of the RESP.

Repeal

 [Repeal]

Coming into Force

Footnote * These Regulations come into force on the day on which section 13 of the Act comes into force.

 
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