When a taxpayer earns an income, the income taxes thereon are payable on a current basis. To encourage savings for retirement and other purposes, certain deferral plans are available. Some of these, like the RRSP and RPP, defer the current income by providing a deduction for capital amounts contributed to an appropriate plan. Other deferred income plans, like the registered education savings plan, do not allow a deduction for the capital contribution, but do permit the income earned in the plan to accumulate without tax. This income deferral, whether on capital or income, is widely known as tax deferral. Both income deferral and tax deferral mean the same thing – incomes taxes are payable at a future date rather than currently.