What kinds of cases are you looking for?   
< Previous Case Next Case >

Income tax — CRA chasing widow for deceased's RRSP

My client was a widow whose husband had passed away seven years earlier. She had been the direct beneficiary of his RRSP. He died owing unpaid income tax, and his estate did not have enough assets to pay the CRA. Now, seven years later, the CRA assessed my client under section 160 of the Income Tax Act, which allows tracing of property a tax debtor gives to a family member, for the value she had received from the RRSP. The assessment was for over $120,000. The client came to me at this point.

I filed a Notice of Objection, citing case law that holds that the designation of a beneficiary of an insurance policy is not a transfer of funds, and other case law that holds that an RRSP should be treated like an insurance policy. I also cited recent case law holding that a transfer on death was not subject to section 160 because, at the time of the transfer, the parties were no longer related (since one was deceased).

The CRA appeals officer, after some discussion, accepted my submissions and cancelled the assessment.

Problem vanished!

(2013)