Old Paragraph 146.2(1)(c)
See Also
Dep. MNR v. Bonair Leisure Industries Ltd., 82 DTC 6217, [1982] CTC 188 (FCA)
It was stated respecting the use of the word "homes" in the Excise Tax Act: "The word is not qualified by any adjective. There is thus no reason...
Subsection 146.2(2) - Qualifying arrangement conditions
Paragraph 146.2(2)(a)
Administrative Policy
22 January 2018 Internal T.I. 2017-0727421I7 - Whether a TFSA account may be subject to setoff
Does a TFSA specimen plan (respecting a deposit with a bank) that give the issuer the right to apply a positive balance from the account to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(4) | most express rights of set-off put the TFSA offside | 201 |
27 June 2017 External T.I. 2017-0708951E5 F - TSFA - Conditions
After noting that, notwithstanding the conditions in s. 146.2(2), the TFSA holder may use the holder’s interest in a TFSA as security for a loan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(4) | (apparently permitted) covenant in TFSA declaration requiring asset minimum to support loan to holder | 169 |
Paragraph 146.2(2)(c)
Administrative Policy
20 August 2018 External T.I. 2017-0731541E5 - TFSA contributions
CRA indicated where an employee has an enforceable right (outside the context of a group TFSA arrangement) to receive an amount from the employer...
20 August 2018 External T.I. 2018-0739761E5 - TFSA contributions
CRA indicated that each of the following payments constitutes a contribution made to a TFSA by its holder and, therefore, complies with s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage | the payment of remuneration or a trust distribution directly to a TFSA is not an advantage | 133 |
Paragraph 146.2(2)(e)
Administrative Policy
14 May 2019 CLHIA Roundtable Q. 7, 2019-0799121C6 - 2019 CLHIA Conference Roundtable Question 7
Life annuities may contain both benefits payable during a fixed period regardless of the survival of the measuring life, and benefits that are...
Articles
Max Reed, "TFSA: US Tax Classification", Canadian Tax Highlights, Vol. 22, No. 7, July 214, p. 5
TFSA not a trust for Code purposes (p.6)
[I]f an entity is separate from its owner, it is subject to the entity classification regime unless it is...
Paragraph 146.2(2)(f)
Administrative Policy
22 October 2015 Internal T.I. 2013-0486491I7 - Overdrafts in a TFSA
A short-term overdraft in a TFSA may arise, for example, as a result of a settlement mismatch (e.g. a security sold with three-day settlement and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Unused TFSA Contribution Room | deemed proceeds under s. 146.2(8) are not a distribution | 147 |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(6) - Paragraph 146(4)(a) | accommodation only of temporary technical breach of borrowing prohibition for registered plans | 238 |
Subsection 146.2(4)
Administrative Policy
22 January 2018 Internal T.I. 2017-0727421I7 - Whether a TFSA account may be subject to setoff
Does a TFSA specimen plan (respecting a deposit with a bank) that give the issuer the right to apply a positive balance from the account to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(2) - Paragraph 146.2(2)(a) | a set-off right of an issuer of a TFSA violated the exclusive holder benefit rule | 147 |
27 June 2017 External T.I. 2017-0708951E5 F - TSFA - Conditions
An uncle funds his nephew’s contribution to his TFSA with a loan bearing interest at 3%. The TFSA contract requires the maintenance of an asset...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146.2 - Subsection 146.2(2) - Paragraph 146.2(2)(a) | negative covenant in favour of lender to TFSA holder permitted | 57 |
28 August 2015 External T.I. 2013-0514261E5 - Using the Assets of a TFSA as Security for a Loan
May the underlying assets of a TFSA trust be used by the TFSA holder as security for a loan or other indebtedness? CRA responded:
When the TFSA...
Subsection 146.2(5)
Paragraph 146.2(5)(c)
Administrative Policy
17 July 2019 Internal T.I. 2017-0718021I7 - Deregistration of TFSA
A trust lost its status as a tax-free savings account (“TFSA”) because it contravened the registration restriction on borrowing money. It...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | s. 75(2) applied to 1st generation but not 2nd generation income of a non-qualified purported TFSA trust | 276 |
26 February 2015 External T.I. 2015-0569601E5 F - Contribution to a TFSA
Respecting a submitted factual situation where it was unclear whether the taxpayer had gifted money to his spouse with the funds being contributed...
Subsection 146.2(6) - Trust not taxable
Cases
Canadian Western Trust Company v. The King, 2024 FCA 108
The self-directed TFSA of a professional investment advisor was conceded by the TFSA to be carrying on a business of trading in qualified...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | internal government correspondence regarding proposed RRSP change was irrelevant to TFSA interpretation question | 112 |
See Also
Canadian Western Trust Company v. The King, 2023 TCC 17, aff'd 2024 FCA 108
The self-directed TFSA of a professional investment advisor, which actively traded qualified investments (mostly, penny stocks listed on the TSX...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(b) | legislative design to exempt RRSP profits from active trading of qualified investments | 384 |
Administrative Policy
22 March 2018 Internal T.I. 2018-0738201I7 - Residency of TFSA trust
CRA considered that because the trust company trustee of a TFSA, RRSP, RRIF, RESP or RDSP is required under the Act “to maintain and exercise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | all self-directed RRSPs and TFSAs are resident in Canada | 162 |
13 June 2017 STEP Roundtable Q. 13, 2017-0693341C6 - TFSA Audit Project
S. 146.2(6) provides that if a TFSA “carries on one or more businesses” then Part I tax is payable on its business income. What guidance is...
S3-F10-C1 - Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Option trading and short selling
1.90 As discussed in ¶1.41 and ¶1.46, where a registered plan engages in certain option writing strategies or...
18 January 2010 External T.I. 2009-0340431E5 F - REER, exploitation d'une entreprise
When asked to confirm the tax consequences related to speculative trading activities carried out in a tax-free savings account, CRA stated.
A...
Articles
Arthur B.C. Drache, "TFSAs as a Business", The Canadian Taxpayer, January 2, 2015 – Vol. xxxvii No. 1, p. 5.
TFSA audit project
(p.5)
Sources from the tax and legal sectors of the CRA have apparently confirmed to the Financial Post that the CRA has rolled...