Designated education institutions – designated educational institutions include:Surat Investment
Canadian universities, colleges, and other educational institutions
Canadian educational institutions certified by Employment and Social Development Canada (ESDC) providing courses that develop or improve skills in an occupation, other than courses designed for university credit
Universities outside Canada where the student is enrolled in a course that lasts at least three consecutive weeks and leads to a degree at the bachelor level or higher
Universities, colleges, or other educational institutions in the United States that give courses at the post-secondary school level if the student is living in Canada (near the border) throughout the year and commutes to that institution
Fair market value (FMV) – is generally considered to mean the highest price expressed in terms of money that can be obtained in an open and unrestricted market between informed and prudent parties, who are dealing at arm’s length and under no compulsion to buy or sell.
For more information on the valuation of securities of closely held corporations, see “Information Circular IC89-3, Policy Statement on Business Equity Valuations”.
LLP balance – your LLP balance, at any time, is the total of all eligible amounts you have withdrawn from your RRSPs under the LLP, minus the total of all amounts you have repaid to your RRSP, PRPP or SPP included in your income.
LLP student – this is the individual whose education you are financing under the LLP. It can be you or your spouse or common-law partner, but not your child or the child of your spouse or common-law partner. You have to participate in the LLP for the same LLP student each year until the year after you have reduced your LLP balance to zero.
LLP withdrawal – this is an amount you withdraw from your RRSPs under the LLP.
Participation period – your LLP participation period starts on January 1 of the year you make an eligible withdrawal from your RRSP and ends in the year your LLP balance is zero.
Pooled registered pension plan (PRPP) – a retirement savings plan to which you or your employer or both can contribute. Any income earned in the PRPP is usually exempt from tax as long as it remains in the plan.
Qualifying student – for the purposes of the LLP, for a month in a taxation year after 2016 means an individual who in the month is enrolled in a qualifying educational program as a full-time student at a designated educational institution, and if requested by the Minister has provided proof of enrolment by filing a certificate in prescribed form issued by the designated educational institution and containing prescribed informationJaipur Investment. If the individual is enrolled at an educational institution certified by the Minister of Employment and Social Development, the individual is 16 years of age before the end of the year and is enrolled in the program to obtain skills for, or improved the individual’s skills in, an occupation.
Repayment period – the repayment period starts in the second, third, fourth, or fifth year after the year of the first withdrawal and ends when the LLP balance is zero.
RRSP deduction limit – the maximum amount you can deduct from contributions you made to your RRSP, PRPP or SPP and to your spouse’s or common‑law partner’s RRSP or SPP for a year (excluding transfers to your RRSPs of certain types of qualifying income). The calculation is based, in part, on your earned income in the previous year. Pension adjustments (PAs), past service pension adjustments (PSPAs), pension adjustment reversals (PARs), prescribed amount for connected persons, and your unused RRSP deduction room at the end of the previous year are also used to calculate the limit.
Specified pension plan (SPP) – a pension plan or similar arrangement that has been prescribed under the Income Tax Regulations as a “specified pension plan” for purposes of the Income Tax Act. Many of the rules related to RRSPs also apply to SPPs.
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