I just wrote about TFSA over-contribution hell. The Federal Court of Appeal recently confirmed that the advantage “tax” is constitutional under section 53 of the Constitution Act, 1867 and that no due-diligence defence is available because it is a tax.…
Over-contribution penalty hell
A taxpayer over-contributes to his TFSA, and then the investments in the TFSA become worthless so that he cannot withdraw the excess. Is the taxpayer entitled to relief from the over-contribution penalty? The Federal Court recently held that the CRA…
TFSA trading business
Canadian Western Trust Company v. Canada, 2024 FCA 108, affirmed 2023 TCC 17, which had confirmed assessments issued to a TFSA because, the CRA had alleged, it had engaged in a securities trading business.
It’s a tax, not a penalty
I have a great deal of sympathy for the notion that the “taxes” imposed in respect of TFSAs by sections 207.05 and 207.06 of the Income Tax Act (Canada) are in fact penalties and not “taxes”. It’s unfortunate that Parliament…
Retiring allowance and RRSP room
In Wyrstiuk v. The Queen, 2022 TCC 10 (informal procedure), the Court held that a retiring allowance is not ‘earned income’ for the purposes of computing RRSP contribution room.
IPP surplus payment and Part XIII tax
In technical interpretation 2017-0732681E5 (September 12, 2019), the CRA took the position that the distribution of an actuarial surplus from an individual pension plan to a US-resident taxpayer would not qualify for US treaty relief. The CRA stated that the…
Borrowing from RRSP to loan to Opco
If the technical requirements of the Income Tax Act (Canada) are met, a taxpayer can mortgage her house to her RRSP and then deduct the interest on the loan from the RRSP, if the loan proceeds are on-loaned to Opco.…
RRSP/RRIF/TFSA “advantages”
The CRA believes that an annuitant who pays fees (investment management and other fees) for an RRSP/RRIF/TFSA thereby derives an “advantage”. The CRA says that, with effect after 2017, plans must be changed so that the fees are charged to…
Small business shares in RRSPs
From Daniel Gosselin, “Reversing Prohibited Status of Small Business Shares in RRSPs”, Tax for the Owner-Manager, 15:4 (October 2015): In a technical interpretation (TI 2015-0579671E5, May 28, 2015), the CRA confirms that the shares of a corporation that ceases to…