Refund of taxes paid on non-qualified or prohibited investments
You may be entitled to a refund of the 50% tax on non‑qualified or prohibited investments if the investment was disposed of or ceased to be a non-qualified or prohibited investment, before the end of the calendar year after the year in which the tax arose (or such later time as is permitted by the Minister of National Revenue).
However, no refund will be issued if it is reasonable to expect that you knew, or should have known, that the investment was or would become a non-qualified or a prohibited investment.
The refund applies to the 50% tax on non-qualified or prohibited investments, but not to the 100% tax on advantages.
Note
If the 50% tax on non-qualified or prohibited investments and the entitlement to the refund of that tax arose in the same calendar year, then a remittance of the tax is not required. For example, no remittance of tax would be required if an RRSP or RRIF trust acquired and disposed of a non-qualified investment in the same calendar year.
How to claim a refund
To claim a refund, you must:
- send your request in writing
- attach the appropriate documents detailing the information relating to the acquisition and disposition of the non‑qualified or prohibited property (you can attach the written request and supporting documents to Form RC339)
The documents must contain all the following:
- name and description of the property
- number of shares or units
- date the property was acquired or became non‑qualified or prohibited property
- date of the disposition or the date that the property became qualified or ceased to be prohibited