POET Technologies Inc.

over 9 years ago

Having a large amount in a TFSA. Recent media reports say the CRA has been targeting holders of very large tax-free savings accounts (TFSAs) — those in the hundreds of thousands or even millions of dollars. The issue appears to be that some TFSA holders have been successful by being active traders within their TFSA, perhaps trading dozens of times a day. That appears to be a problem in the eyes of the CRA because taxpayers aren't supposed to use their TFSAs to carry on a business — in this case, a trading business. "It seems clear that the CRA is intent on challenging those who have enjoyed significant growth within their TFSA," warns tax law firm Thorsteinssons LLP. The tax department has reportedly been saying the gains in these cases should all be taxed. Look for this issue to head to court soon.