Personal Income Tax -> Offshore Investment Schemes

CRA Warns About Schemes Promising Tax-Free RRSP or RRIF Withdrawals

Canada Revenue Agency (CRA) issued a taxpayer alert warning taxpayers to be wary of offshore investment schemes or tax shelter arrangements which claim that the income from such schemes will not be taxable.  Some of these schemes claim that taxpayers can withdraw funds tax-free from RRSPs.  See our article "What tax is deducted from RRIF or RRSP withdrawals?" on the RRSP page.

Potential investors should read the CRA Tax Alert from 2007, and get professional tax and/or legal advice before putting money into investments which make these claims.

See also CRA's 2009 Tax Alert Warning: Investing in schemes that promise you tax free withdrawals from RRSPs and RRIFs could result in the loss of your retirement savings.

If you want to see how you can shelter your RRSP withdrawals to save tax, see our article Get your money out of RRSPs tax-free (sort of).

Tax Tip:  Get INDEPENDENT advice from a tax professional before investing in tax-saving "schemes".

Revised: November 20, 2024

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