In 2020, the taxpayer accomplished the transfer of the TFSA that he held with Caisse Desjardins to the one held with Banque Nationale by withdrawing the funds from the first TFSA and depositing then to the second TFSA, rather than arranging for Caisse Desjardins to transfer the funds directly as a “qualifying transfer” as defined in s. 207.01(1). In finding that the CRA decision to deny his request for relief pursuant to s. 207.06(1) was reasonable, Régimbald J stated (TaxInterpretations translation, paras. 20-21):
In the Decision, the Minister concluded that the applicant's error in this case was not a "reasonable error", since the applicant admitted that he had not completed his transfers in the manner prescribed by the CRA, in particular by asking his financial institution to do so directly or by submitting Form T-2033, since he was unaware of the obligation to do so. According to the Minister, the exercise of her discretion would therefore not be appropriate in the circumstances.
This Court has already ruled on similar scenarios on numerous occasions. The jurisprudence clearly demonstrates that ignorance of the provisions of the ITA and of the obligations of taxpayers in managing their TFSA accounts, or the receipt of bad advice, do not constitute a "reasonable error" within the meaning of subsection 207.06(1), justifying the exercise of the Minister's discretion … .
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