What are the tax advantages of Registered Education Savings Plans (RESPs) in Canada?

Advantage – any benefit, or debt that is conditional on the existence of the RESP, subject to certain exceptions for normal investment activities and conventional incentive programs.

An advantage also includes any benefit that is an increase in the total fair market value (FMV) of the property of the RESP that is reasonably attributable to any one of the following:

• a transaction or event (or series) that would not have occurred in a normal commercial or investment context between arm's length parties acting prudently, knowledgeably, and willingly, and one of the main purposes of which is to benefit from the tax-exempt status of the RESP
• a payment received in substitution for a payment for services rendered by the subscriber (or non-arm’s length person) or for a return on investment on non-registered property
• a swap transaction
• specified non-qualified investment income that has not been paid from the RESP within 90 days of the subscriber receiving a notice from CRA requiring removal

Check for more information here at the CRA website: Registered Education Savings Plans (RESPs) - Canada.ca (opens in a new tab)