A client received a letter stating he invested in a non-qualified investment in the registered account. He sold the stock since then. My understanding that he needs to send the relevant form and 50% FMV to CRA. How about tax on the gain on the sale of that stock? Will the tax automatically be deducted from the registered account?
I did this couple years ago, but I caught it when I reviewed the client’s T slip, not from CRA, so I advised the client, and the non-qualified investment was sold, there was a form calculated the claim, there was also a relief, I don’t remember the form number now, CRA accepted the form, and there was no tax on the non-qualified investment