T4RSP withdrawal on Departure return!

[adeboloj]

Hello Nelsona,

Please i need a clarification from you on T4RSP!
I allowed software to access my CRA account (as well as my wife) to pull all the records, so T4RSP was added to my departure tax.
While browsing this site, i read from one of your posts twice in 2005 telling people not to add 4TRSP withdrawal or tax paid on it to departure tax.
I believe this, however since this is from 2005, i searched for more topics on T4RSP and departure tax to see if there is something recent and this is still the rule but i cant find any except the 2005 posts.
So i went back to the software and took out all the T4RSP withdrawal and the tax paid and this gave a much better return, so i noticed adding the T4RSP is increasing the net income.
My question is, is this comment still valid for 2020, Do not add 4TRSP withdrawal and tax paid to a departure tax?

Thank you

[adeboloj]

Tax guru!
Again, seems the statement back from 2005 is still valid!!!
You do not need to report RRSP withdrawal on T4RSP statement, below is what I found on CRA website:

"What income do you have to report?
Part of the tax year that you WERE a resident of Canada
Report your world income (income from all sources, both inside and outside Canada) on your Canadian tax return.

Part of the tax year that you WERE NOT a resident of Canada
After you leave Canada, as a non-resident, you pay Canadian income tax only on your Canadian source income. However, only certain types of Canadian source income should be reported on your return while others are subject to non-resident withholding tax at source.

For more information on your tax obligations as a non-resident, go to Non-residents of Canada."

[nelsona]

The flat 25% tax that you were supposed to pay on your RRSP withdrawal taken after you left Canada is the final tax and neither the income nor the tax is reported on a return. You do need to make sure that you paid 25% tax. If not, a separate letter, with the correct tax is to be sent.

[adeboloj]

Thank you for your response!
I should clarify something though, in my situation the RRSP withdrawal was before my departure date and it was taxed at 30%, 30% and 10% on three different withdrawals from one company, I dont know why!
But i re-read the posts from 2005 again and noticed it was a withdrawal after departure and now makes sense why tax payer need to make sure it is withheld at 25% and send CRA a letter for the error. In my case, since withdrawal was before departure and one has to report all income before departure, I simply add all the T4RSP slips as income and taxes paid to my departure return, so the software can re-calculate.

[nelsona]

If you made the withdrawal before your departure date, then of course, the withdrawal and the tax will be used on your departure return. The reason you were withheld these percentages was based on the scale and the amount of each withdrawal. This withholding was only an estimate, and the true tax is determined on your tax return, just like if you were a normal resident of Canada.