CRA extends the effective date for applying advantage tax, where RRSP or TFSA fees are paid by the annuitant or holder, to 2019

In 29 November 2016 CTF Roundtable Q. 5, 2016-0670801C6, CRA indicated that it now considered the payment of fees for investment management of an RRSP, RRIF or TFSA by the plan annuitant or holder to be an “advantage” for Part XI.01 purposes (i.e., giving rise to a tax equal to 100% of the fee amount) but that to give the investment industry time to make the required system changes, it would defer applying this new position until January 1, 2018.

CRA has now announced that it has extended this effective date by one year (to January 1, 2019) to give more time to consider investment-industry submissions.

Neal Armstrong. Summary of 15 September 2017 External T.I. 2017-0722391E5 under s. 207.01(1) – advantage – (b)(i).