CRA is proposing to assess taxpayers who have overcontributed to TFSAs after only one warning letter

CRA is proposing to streamline its procedures so that any taxpayer who, having failed to remove an excess contribution from his or her TFSA following a warning letter from CRA, will be subject to an automatic assessment of tax on the excess contribution without further warning. CRA considers that “subsection 152(7) permits the Minister to make an assessment of tax under Part XI.01 without first contacting the taxpayer,” so that such assessments are authorized.

Neal Armstrong. Summary of 11 September 2015 Memorandum 2015-0599851I7 under s. 152(7).