PK was ordered to pay Sangita $15,000 from his RRSP as part of their divorce settlement. Sangita transferred the amount directly from PK's RRSP into her RRIF. Shortly after his divorce, PK married Yasmin, who received $10,000 as a refund of premiums from her late husband's unmatured RRSP. Yasmin received the $10,000 in cash on July 1st of her husband's death and she deposited the entire amount into her bank account. In February of the next year, she transferred the $10,000 into her RRIF. 

Who must pay income tax on the funds removed from the RRSPs?

Answer rating: 100% (QA)

In both cases the funds were withdrawn from registered retirement accounts RRSPs and RRIFs and the t... View the full answer