Section 146.2

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...

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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...

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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...

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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...

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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....

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (a) 297
Tax Topics - Income Tax Act - Section 262 233
Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (d) 388
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(b) 294
Tax Topics - Income Tax Act - Section 204.4 - Subsection 204.4(1) 172
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(2) 64
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j) 167
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(j.1) 75
Tax Topics - Income Tax Act - Section 204 - Qualified Investment - Paragraph (b) 65
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(e) 217
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) 85
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(u) 92
Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(v) 60
Tax Topics - Income Tax Regulations - Regulation 4901 - Subsection 4901(2) - Specified Small Business Corporation 64
Tax Topics - Income Tax Regulations - Regulation 5100 - Eligible Corporation 54
Tax Topics - Income Tax Act - Section 207.04 - Subsection 207.04(4) 92
Tax Topics - Income Tax Act - Section 146 - Subsection 146(10.1) 100
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(6) 128
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(a) 138
Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(b) 104

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...

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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...

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