Shawn Mendez had earned income for the first time in 2019. At the end of the year, his unused RRSP deduction limit was $12,000. For the 2020 tax year, his new contribution room was $11,250. Shawn is also very careful and has not "over-contributed" to his RRSP. On July 2nd last year, Shawn made a $30,000 contribution to his RRSP. But on December 2nd, he realized he had calculated wrong and had over-contributed for the year. Now Shawn is facing an over-contribution penalty and must remove funds from his RRSP. What is the total amount of the financial penalty that Shawn owes to Canada Revenue Agency due to his "excess" contribution?

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To determine the total amount of the financial penalty that Shawn owes to the Canada Revenue Agency ... View the full answer