What are promissory notes?

Promissory notes are non-qualified investments that are not eligible to be held in registered accounts. An investment could potentially offer promissory notes or any other debt instruments as a result of distributions or redemptions in lieu of cash.

If promissory notes or other debt instruments are processed into registered accounts, Olympia Trust Company will report the non-qualified investments to CRA and clients will be responsible to complete the applicable RC339 or RC243 forms.

If you have any questions with regards to the taxation of non-qualified investments, please contact your financial, tax, or legal advisor, or a CRA representative. Olympia Trust Company representatives are not authorized to provide any legal, accounting, or tax advice.

For more information, please refer to CRA's website Tax Payable on Non-Qualified Investments on RRSP and RRIFs and Income Tax Folio S3-F10-C1.

Was this article helpful? 0 out of 0 found this helpful

Articles in this section

See more