Tax payable on use of property as security

Every issuer of an RDSP shall pay a tax for a calendar year if, in the year, with the consent or knowledge of the issuer, an RDSP trust uses or permits to be used any property held by the trust as security for indebtedness of any kind.

The issuer must file Form T3GR, Group Income Tax and Information Return for RRSP, RRIF, RESP, or RDSP Trusts.

Amount of tax payable

The amount of tax payable is equal to the FMV of the property when the property started being used as security.

Date modified:

2016-12-01