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Canada Education Savings Regulations

Version of section 10 from 2022-05-20 to 2024-04-01:

  •  (1) Subject to subsection (3), the portion of an EAP made to a beneficiary under an RESP that is attributable to a CLB is the amount determined by the formula

    A × B/C

    where:

    A
    is the amount of the EAP,
    B
    is the balance in the beneficiary’s CLB account immediately before the payment of the EAP, and
    C
    is the total amount available to the beneficiary for an EAP.
  • (2) Subject to subsections (3) and (4), the portion of an EAP made to a beneficiary under an RESP that is attributable to CES grants is the lesser of

    • (a) the amount determined by the formula

      A × D/C

      where

      A
      is the amount of the EAP,
      D
      is the balance in the grant account of the RESP immediately before the payment of the EAP, and
      C
      is the total amount available to the beneficiary for an EAP, and
    • (b) the amount by which $7,200 is greater than the aggregate of all amounts determined under this subsection in respect of an EAP previously made by the promoter to the beneficiary.

  • (2.1) The portion of an EAP made to a beneficiary under an RESP that is attributable to accumulated income is the amount determined by the formula

    A × E/C

    where

    A
    is the amount of the EAP,
    E
    is the amount of the accumulated income in the RESP immediately before the payment of the EAP, and
    C
    is the total amount available to the beneficiary for an EAP.
  • (2.2) For the purposes of subsections (1) to (2.1), the total amount available to the beneficiary for the EAP is the sum of

    • (a) the accumulated income,

    • (b) the amounts in the RESP paid by a designated provincial program and eligible to be paid in the EAP under the laws applicable to the designated provincial program,

    • (c) if the beneficiary is resident in Canada at the time the EAP is made, the balance in the beneficiary’s CLB account, and

    • (d) if the aggregate of all amounts determined under subsection (2) in respect of an EAP previously made by the promoter to the beneficiary is less than $7,200 and, if the beneficiary is resident in Canada at the time the EAP is made, the balance in the grant account of the RESP.

  • (3) The portion of an EAP that is attributable to CES grants or a CLB is nil where the beneficiary is not resident in Canada at the time the EAP is made.

  • (4) The portion of an EAP made to a beneficiary under an RESP that allows more than one beneficiary at any one time that is attributable to CES grants is nil where the beneficiary became a beneficiary under the RESP after attaining 21 years of age, unless, before attaining 21 years of age, the beneficiary had been a beneficiary under another RESP that allows more than one beneficiary at any one time.

  • (5) Where a CES grant or a CLB is paid as a portion of an EAP to a beneficiary under an RESP, the trustee shall debit the grant account or the CLB account of the RESP, as the case may be, at the time of the payment with the amount of CES grant or CLB paid.

  • 2010, c. 12, s. 32
  • SOR/2018-275, s. 4
  • SOR/2022-112, s. 1(F)

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