The inclusion of a sworn declaration or affidavit in the RRSP withdrawal application process serves several important purposes:
Legal Accountability: By requiring individuals to make a solemn declaration or affidavit, the government ensures that the information provided is accurate and truthful. This helps maintain the integrity of the RRSP program.
Prevention of Fraud: Requiring a sworn declaration or affidavit discourages fraudulent activities, such as attempting to withdraw RRSP funds for purposes not allowed by the CRA.
Documentation: These legal documents provide a clear record of the applicant’s commitment to the accuracy of the information provided, which can be crucial in case of any disputes or audits.
Protection for Financial Institutions: Financial institutions administering RRSPs have a responsibility to ensure that withdrawals are made in accordance with the law. The inclusion of a sworn declaration or affidavit helps protect these institutions from inadvertently facilitating improper withdrawals.