Thread: Dividing RRSPs?
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Old 09-08-2017, 12:59 PM   #3
Cecil Terwilliger
That Crazy Guy at the Bus Stop
 
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Anyone know for sure if the Withholding tax % applies to what would be taxed as income, or if the full amount would be taxed at her nominal interest rate regardless of whats withheld?
I'm a little unclear exactly what you're asking with the wording of your questions but I'm gonna try an answer. I think you're asking if she'll pay income tax and withholding tax twice. The answer would be no. If she's already paid withholding tax, but it wasn't enough to cover her total income taxes owed, then she could owe more but won't pay twice on the same earnings, she'll just pay the difference not covered by the withholding tax.

Last edited by Cecil Terwilliger; 09-08-2017 at 01:01 PM.
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