In what situation are withdrawals from a Spousal RRSP taxable to the contributor?

Withdrawals from a Spousal RRSP are typically made by the annuitant spouse (the spouse for whom the RRSP was set up). However, there are specific circumstances under which the contributor spouse becomes responsible for taxation on those withdrawals. The correct scenario occurs when the spouse withdrawing the funds is not the beneficiary of the Spousal RRSP. In this case, since the funds were contributed with the intent for the other spouse's benefit, if that spouse does not hold special rights or is not the designated beneficiary, the withdrawal could potentially revert the tax liability back to the contributing spouse.

In terms of additional context, other choices do not accurately describe situations where the contributor is taxable for the spouse's withdrawals. For instance, the spouse withdrawing funds for the first time does not trigger tax for the contributor unless conditions surrounding separation or beneficiary designation also apply. Similarly, if funds are transferred tax-free into the owning spouse's RRSP, this transaction does not impose taxes on the contributor either. Lastly, separation between the contributor and the beneficiary typically establishes that the beneficiary can access their funds without the contributor being taxed for said withdrawals, barring specific legislative provisions surrounding the separation.