GREY:CVHIF - Post by User
Comment by
HFHF123on Jan 19, 2018 4:23pm
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Post# 27397548
RE:Question about TFSA
RE:Question about TFSAThis is referred to as an "advantage" in your TFSA.
The penalty on an advantage is 100%. So in short, you don't actually gain anything. You can see this calculation in the TFSA Return Form.
The idea behind is that the gain (or advantage) would not have been possible without the prohibited action and therefore it technically doesn't belong to you.
(if you don't believe me - per the TFSA Return form on the CRA website:
"An advantage also includes any benefit that is income (excluding the dividend gross-up), or a capital gain that is reasonably attributable, directly or indirectly, to one of the following: • a deliberate over-contribution to a TFSA; or • a prohibited investment for any TFSA of the holder.")
If you think you can "hide" an over-contribution from the TFSA... good luck. Your financial institution provides details on your contributions, withdrawals, and gains to the CRA at year end, so they'd have all the information they need.