Q. I bought a $1,000 RRSP and I didn't get a refund. I expected to get my $1,000 back. What happened?
A. Purchasing an RRSP does not guarantee a refund. When you buy an RRSP you can use that amount to reduce your taxable income. The RRSP will produce a dollar for dollar reduction of your taxable income. Your tax savings depends on which tax bracket you are in. For example, a $1,000 RRSP will produce tax savings of $390 on income in excess of $113,804 in Alberta. The same $1,000 will produce tax savings of only $260 on income below $35,000 in Alberta. We refer to these as tax savings as it simply reduces a tax liability or increases a refund accordingly.
Q. How long do I need to keep my records?
A. You must keep all of the records and any supporting documents that are required to determine your tax responsibilities and entitlements for a period of 6 years from the end of the last tax year to which they relate. Permanent records such as minutes, registers, general ledger, or special contracts must be retained for a period of 6 years after the business' last year-end or if a corporation is dissolved, 2 years after the day it was dissolved.