RRSP withholding tax
January 31st, 2007 by Questions
I borrowed a large amount from my friends and relatives to pay the medical expense for the father and the funeral expenses, I\’m a pensioner and have only 400 each month, now I need to withdraw my RRSP savings 50,000 to pay the debts and the credit cards, I got the info from the bank that if I withdraw not more than 5000 each time,it only deduct 10% withholding tax, if withdraw several times, by end of the year need to pay back the difference to the Revenue due to the income will be greater. If I done so in Feb 2007 and choose to declare bankruptcy in May/07, (cause I owe credit cards 90,000 and relatives debts 40,000), when the trustee submit my income tax of 2007, will they include the tax and I no need to pay the the revenue.
I need help and please advice.