Section 204.1

Subsection 204.1(2.1) - Tax payable by individuals -- contributions after 1990

Administrative Policy

18 November 2014 T.I. 2012-0457981E5 - Restorative payment to registered plan

employer restorative payment to RRSP or RPP to compensate for tort

Employer accidentally missed contributing, to a group RRSP or defined contribution pension plan, the Employer's portion on behalf of an employee for a time period. CRA stated:

In regards to an employer payment made in respect of missed contributions to an employee's registered plan, an employee would generally be liable for Part X.1 tax under subsection 204.1 of the Act where the contributions cause the employee to have a cumulative excess amount in respect of the employee's RRSPs.