Canadian Western Trust – Federal Court of Appeal confirms that a TFSA trading in qualified investments was taxable on the profits

A self-directed TFSA was conceded by it to be carrying on a business of trading in qualified investments. However, it submitted that the exemption from tax for an RRSP on business income from the disposition of qualified investments in s. 146(4)(b)) should be read into s. 146.2(6) given that the RRSP and TFSA regimes were “mirror images” of each other.

In rejecting this submission, and before dismissing the appeal, Biringer JA stated:

We agree with the Tax Court that the appellant’s reading is unsupported by the text, context, and purpose of subsection 146.2(6), and would amount to a re-drafting of the provision … .

Neal Armstrong. Summaries of Canadian Western Trust Company, Trustee of Ahamed TFSA v. Canada, 2024 FCA 108 under s. 146.2(6) and General Concepts - Evidence.