Paulyboy (and anyone else thinking of similarly making a deliberate over-contribution to their TFSA):
Don't do it.
Deliberate overcontributions are taxed fully at the fair market value. You will pay the 1% penalty on the overcontribution amount, PLUS you will be getting taxed on any profits you make on the excess amount (thus defeating the perceived "benefit" of overcontributing). Deliberate overcontributions are treated as an advantage under CRA rules.
This loophole was closed several years ago to prevent people from trying to deliberately overcontribute and accept the 1% penalty. Now, gains from overcontributions are taxable.
For more information, see:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/txtn/vntg-eng.html
Save yourself the trouble and don't do it.
BUMBLEBEE
