CRA confirms that the amended TFSA “advantage” definition still does not accommodate estate-freeze style transactions

In 2009-0320311I7 and ITTN, No. 44, CRA concluded that where common shares of a company are issued to a TFSA of a key employee as part of a freeze, it will consider subsequent increases in those shares’ fair market value to be an "advantage" as defined in s. 207.01(1), so that there will be taxable benefits to the employee. CRA has now confirmed that an amendment effective March 23, 2011, which narrowed this definition somewhat by replacing a reference to "open market" with "normal commercial or investment context," has not changed this position.

Neal Armstrong. Summary of 28 May 2015 T.I. 2015-0574481E5 under s. 207.01(1) – Advantage.