T4RSP/T4RIF and T4A(P) reporting

AI summary

Petitioners ask Canada to require separate T4RSP/T4RIF and T4A(P) boxes, record tax‑exempt CPP contributions and create an Indigenous tax unit. The government responds… CRA will review slips, update systems, use Form T90 and improve outreach.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Government of Canada Whereas: The Government of Canada recognizes that the honour of the Crown guides the conduct of the Crown in all of its dealings with Indigenous peoples; Whereas the T4 tax slip has been updated to list tax-exempt employment income and the T4A tax slip has been updated to list tax exempt pension or superannuation income; Tax-exempt retirement income from a defined contribution pension plan can only be listed in the same box as taxable income resulting in undue stress, both financial and mental, being placed on the Indigenous population facing reassessments year over year; When an Indigenous individual contributes to the Canada Pension Plan (CPP) from their tax- exempt income, the CPP credits they earn are not registered as tax-exempt; and Due to gaps in the current filing regime, the Indigenous tax-exempt population is over- represented in reassessment claims, placing great strain on the community and on government resources. We, the undersigned, citizens of Canada, call upon the Government of Canada to: 1. Take steps to allow the listing of tax-exempt retirement income on the T4RIF and T4RSP tax slips in a separate box from taxable income, similar to how tax-exempt income is reported on T4 and T4A tax slips; 2. Implement a method for the Canada Revenue Agency (CRA) and Service Canada to report and record qualifying tax-exempt CPP contributions as they are contributed each year; 3. Update the T4A(P) tax slip for CPP retirement benefits with a separate box to account for the income received that is tax-exempt, similar to how tax-exempt income is reported on T4 and T4A tax slips; 4. Ensure any and all tax-exempt returns, especially those belonging to Indigenous Canadians, are handled in an efficient and timely manner, and; 5. Develop and implement a team/division within the CRA that specializes in First Nations tax matters and can handle potential wrongful reassessments in a more timely manner, if not preventing them from occurring altogether.

Government response

Response by the Secretary of State (Canada Revenue Agency and Financial Institutions) Signed by The Honourable Wayne Long The Canada Revenue Agency would like to thank the petitioners for raising concerns about the reporting and administration of tax-exempt retirement income. The Canada Revenue Agency acknowledges that some Indigenous individuals with tax-exempt income have experienced reassessments, and recognizes the financial and personal stress this can cause. The Canada Revenue Agency is dedicated to conducting its work in a manner consistent with the honor of the Crown and its obligations to Indigenous peoples. The Canada Revenue Agency is committed to continuing to examine ways to address the concerns related to the reporting of tax-exempt retirement income. The Canada Revenue Agency recognizes the importance of clear and accurate tax reporting for individuals with income exempt from tax under the Indian Act, including tax-exempt retirement income. The Canada Revenue Agency remains focused on exploring opportunities to improve forms, slips and filing mechanisms to better support Indigenous individuals. Making changes to the identified information slips (T4A(P), T4RSP and T4RIF) requires careful consideration and coordination with multiple partners, including pension administrators, financial institutions, federal departments and other affected stakeholders. Such changes also require systems modifications. In the interim, the Canada Revenue Agency continues to support existing filing mechanisms that allow certain tax-exempt amounts to be reported when an individual files their return: Let Us Help You Get Your Benefitsis a simplified T1 return and an important filing mechanism for eligible Indigenous individuals, particularly those who may face barriers to filing due to limited internet access and geographic remoteness, or who have a simple tax situation where they may not otherwise file. This makes it easier for Indigenous individuals to file their tax returns (including reporting tax-exempt retirement income) and to access the benefits they are entitled to in a timely manner. Form T90, Income Exempt from Tax under the Indian Act is an important filing mechanism for individuals who are registered or entitled to be registered under the Indian Act and who have income that is exempt from tax under the Indian Act. The form allows individuals to report certain tax-exempt retirement income when filing their return. In addition to these filing mechanisms, the Canada Revenue Agency is also improving how it identifies and handles tax-exempt retirement income. The Canada Revenue Agency is updating its systems and procedures to better capture and integrate tax-exempt retirement income reported on Form T90, Income Exempt From Tax Under the Indian Act. These updates are planned for February 2027 (for the 2026 tax year) and aim to reduce the number of reviews and system-generated reassessments. Since they rely on information from Form T90—which is optional—their success depends on people with tax-exempt retirement income choosing to file it. The Canada Revenue Agency is working with Indigenous partners to raise awareness about the importance of using Form T90. Canada Pension Plan benefits fall under the mandate of Employment and Social Development Canada. The Canada Revenue Agency is collaborating with Employment and Social Development Canada and Service Canada officials to explore how improved information-sharing and system coordination could better support the reporting of tax-exempt Canada Pension Plan benefits. The Canada Revenue Agency also recognizes the importance of ensuring that files involving tax-exempt income under the Indian Act continue to be handled by Canada Revenue Agency employees with the appropriate expertise. While the Canada Revenue Agency continues to assess the most effective operational approach, including how best to support employees working on these files, it is working on strengthening internal guidance, procedures and awareness to improve the processing of tax-exempt retirement income not reported as such on the relevant information slips. These efforts are intended to support more consistent handling of affected files, reduce the number of reviews and reassessments, and help ensure that individuals are directed to the appropriate filing mechanisms, including Form T90. Taken together, these efforts reflect the Canada Revenue Agency’s continued focus on improving the reporting of tax-exempt retirement income and access to benefits, while reducing the burden for affected individuals. Measures such as simplified filing mechanisms (Let Us Help You Get Your Benefits) as well as Form T90 improvements support individuals in reporting tax-exempt retirement income—including Canada Pension Plan benefits, Registered Retirement Savings Plans and Registered Retirement Income Funds—more easily.