RSM324H1 Chapter 9: CHAPTER 9-3
16 Feb 2017
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Chapter 9 other income, other deductions, and special rules for completing net income for tax. The other-deductions category permits individuals to deduct contributions to a registered retirement savings plan (rrsp) Rrsp is a private, tax-sheltered retirement savings program initiated and controlled by the individual taxpayer for his/her exclusive use. Rrsp is different from a registered pension plan (rpp), which is initiated and controlled by the employer for the benefit of a number of employees. Investments made through an rrsp have a substantially higher return. They permit the investment of pre-tax earnings (from employment, business, and certain other sources) to generate returns that are not taxed until they are required for personal use. Specifically, this is achieved as a result of the following: Contributions to an rrsp are deductible from income: effectively, through an rrsp, taxpayers are permitted to delay the payment of tax and invest those funds for their own benefit.
