I have taken money out of my RRSP under Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP) and I will be leaving Canada. What are the tax consequences?
Allan Madan, CA
If you emigrate from Canada (i.e. become non-resident of Canada for tax purposes), then the outstanding balance on your HBP or your LLP will be included in your taxable income for the year in which you leave Canada.
To avoid this income inclusion, you must pay back the outstanding balance within 60 days from the date of emigration. If you don’t repay the full outstanding balance, only the remaining balance owing will be included in your taxable income.
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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