Budget Implementation Act, 2009 (S.C. 2009, c. 2)

• (A) Class A shares that are issuable only to individuals (other than trusts), trusts governed by registered retirement savings plans and trusts governed by TFSAs and that entitle their holders

• (iii) a distribution under the TFSA, and

• (iv) the payment or allocation of any amount to the TFSA by the issuer; and

• (b) a benefit that is an increase in the total fair market value of the property held in connection with the TFSA if it is reasonable to consider, having regard to all the circumstances, that the increase is attributable, directly or indirectly, to

  • (i) a transaction or event or a series of transactions or events that

    • (A) would not have occurred in an open market in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and

    • (B) had as one of its main purposes to enable a person or a partnership to benefit from the exemption from tax under Part I of any amount in respect of the TFSA, or

  • (ii) a payment received as, on account or in lieu of, or in satisfaction of, a payment

    • (A) for services provided by a person who is, or who does not deal at arm’s length with, the holder of the TFSA, or

    • (B) of interest, of a dividend, of rent, of a royalty or of any other return on investment, or of proceeds of disposition, in respect of property (other than property held in connection with the TFSA) held by a person who is, or who does not deal at arm’s length with, the holder of the TFSA; and

• (c) a prescribed benefit.

E 

is the total of all amounts each of which is the qualifying portion of a distribution made in the calendar year and at or before the particular time under a TFSA of which the individual was the holder at the time of the distribution and, for this purpose, the qualifying portion of a distribution is

• (a) nil, if the distribution is a qualifying transfer or a prescribed distribution, and

• (b) in any other case, the lesser of

  • (i) the amount of the distribution, and

  • (ii) the amount that would be the individual’s excess TFSA amount at the time of the distribution if the amount of the distribution were nil.

“prohibited investment”

« placement interdit »

“prohibited investment”, at any time, for a trust governed by a TFSA means property (other than prescribed property) that is at that time

• (d) prescribed property.

“exempt contribution”

« cotisation exclue »

“exempt contribution” means a contribution made in a calendar year under a TFSA by the survivor of an individual if

• (a) the contribution is made during the period (in this definition referred to as the “rollover period”) that begins when the individual dies and that ends at the end of the first calendar year that begins after the individual dies (or at any later time that is acceptable to the Minister);

• (b) a payment (in this definition referred to as the “survivor payment”) was made to the survivor during the rollover period, as a consequence of the individual’s death, directly or indirectly out of or under an arrangement that ceased, because of the individual’s death, to be a TFSA;

• (c) the survivor designates, in prescribed form filed in prescribed manner within 30 days after the day on which the contribution is made, the contribution in relation to the survivor payment; and

• (d) the amount of the contribution does not exceed the least of

  • (i) the amount, if any, by which

    • (A) the amount of the survivor payment

    exceeds

    • (B) the total of all other contributions designated by the survivor in relation to the survivor payment,

  • (ii) the amount, if any, by which

    • (A) the total proceeds of disposition that would, if section 146.2 were read without reference to subsection 146.2(9), be determined in respect of the arrangement under paragraph 146.2(8)(a), (10)(a) or (11)(a), as the case may be,

    exceeds

    • (B) the total of all other exempt contributions in respect of the arrangement made by the survivor at or before the time of the contribution, and

  • (iii) if the individual had, immediately before the individual’s death, an excess TFSA amount or if payments described in paragraph (b) are made to more than one survivor of the individual, nil or the greater amount, if any, allowed by the Minister in respect of the contribution.

• Marginal note:Survivor as successor holder

  (3) If an individual’s survivor becomes the holder of a TFSA as a consequence of the individual’s death and, immediately before the individual’s death, the individual had an excess TFSA amount, the survivor is deemed (other than for the purposes of the definition “exempt contribution”) to have made, at the beginning of the month following the individual’s death, a contribution under a TFSA equal to the amount, if any, by which

Marginal note:Tax payable on non-resident contributions

207.03 If, at a particular time, a non-resident individual makes a contribution under a TFSA (other than a contribution that is a qualifying transfer or an exempt contribution), the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of

• Marginal note:Where both prohibited and non-qualified investment

  (3) For the purposes of this section and subsection 146.2(6), if a trust governed by a TFSA holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.

• Marginal note:Amount of additional tax payable

  (7) The amount of tax payable under subsection (6) for a calendar year is 150% of the amount of tax that would be payable under Part I by the trust for the taxation year that ends in the calendar year if

  • (a) the Act were read without reference to paragraph 82(1)(b), section 121 and subsection 146.2(6); and

• Marginal note:Waiver of tax payable

  (2) If a person would otherwise be liable to pay a tax under this Part because of subsection 207.04(1) or section 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it just and equitable to do so having regard to all the circumstances, including

• (a) as a registered retirement savings plan, or

• Marginal note:Former TFSA

  (p) an amount that would, if the non-resident person had been resident in Canada at the time at which the amount was paid, be required by paragraph 12(1)(z.5) to be included in computing the non-resident person’s income for the taxation year that includes that time;