Tax on an advantage

In most cases the holder is liable for the advantage tax. However, if the advantage is considered to be extended by the TFSA issuer, or by a person not dealing at arm's length with the issuer, the issuer is liable to pay the tax, rather than the holder.

For more information, see Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals, and refer to "Tax payable on an advantage."

If you are liable to pay tax on an advantage, you must fill out and file Form RC298, Advantage Tax Return for TFSA Issuers, by June 30^th after the end of the calendar year.

Date modified:

2016-11-16