The original capital contributed to a Registered Educational Savings Plan (RESP) is not taxed upon withdrawal, while other amounts, such as income or grants, are taxable to the beneficiary. The feedback from the document states:
" The original capital withdrawn from an RESP is not taxed; all other amounts are taxed in the hands of the beneficiary. "
[Reference: Chapter 6 – Tax and Retirement PlanningLearning Domain: The Know Your Client Communication Process, , , , ]
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