Fact Sheet

ESP contributions not returned to the subscriber

May 22, 2001

How to register your education savings plan

If you opened an education savings plan (ESP) in 1999, and you have not provided a social insurance number (SIN) for the child (beneficiary), your plan has not been registered with the Canada Customs and Revenue Agency (CCRA). The Income Tax Act requires that this information be provided before an ESP can be registered.

A registered education savings plan (RESP) allows you (the subscriber) to shelter the plan's income from tax. In addition the first $2,000 of annual contributions made on behalf of a beneficiary become eligible for a 20% grant under the Canada Education Savings Grant. These advantages are only available if your plan has been registered.

Final Registration Deadline

You can still register your 1999 ESP by providing your RESP promoter with the social insurance numbers (SINs) for each subscriber and beneficiary, by December 31, 2001. For your convenience a SIN application form is included with this fact sheet.

Once your plan has been registered, the promoter can apply, on your behalf, for a grant under the Canada Education Savings Grant.

If you do not provide the SIN for each beneficiary to your promoter before December 31, 2001, investment income earned on these contributions will be included in the contributor's income. Therefore, your promoter will issue you a T3 slip for any investment income earned on these contributions in 1999 and 2000. Do not send these slips to the CCRA. We will receive a copy from the promoter and adjust your 1999 and/or 2000 tax records accordingly.

For more information, call: 1-866-753-4455.