Contact us at (403) 209-2248 or help@ncca.co

CRA cracking down on manipulation of TFSAs

CRA cracking down on manipulation of TFSAs

The CRA is cracking down on aggressive manipulation of TFSAs and all other registered plans

Source: Financial Post
Author: Jamie Golombek

As Canadians, we sure do love our TFSAs. The ability to earn tax-free investment income and gains for life, coupled with the flexibility to withdraw funds, tax-free, at any time and for any purpose and then recontribute the amounts withdrawn in a subsequent year, make these savings vehicles a favourite choice among millions of taxpayers.

But, unfortunately, it seems the temptation to manipulate the completely tax-free nature of TFSAs is too great for some, which is why there are several anti-avoidance rules in the Income Tax Act to prevent abuse and manipulation of all registered plans, including not only TFSAs, but also RRSPs, RRIFs, RESPs and RDSPs.

Click here to read the full article.

0 Comments

Leave a reply