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Ossai v. Canada (Attorney General) - 2023 FC 313 - 2023-03-07

This inadvertently resulted in an over-contribution to his TFSA or “excess TFSA” amounts as of March 2020. [5] On December 2, 2020, the CRA corrected their error regarding the Applicant’s residency date and reduced his TFSA contribution room by $20,000.   [...]  A review of your situation and our records show that the removal of excess TFSA contribution(s) did not occur within a reasonable time frame.   [...]  [26] The Respondent takes the position that the Applicant became aware of the 2020 TFSA excess contribution by July of 2021 when he received his notice of assessment and did not completely remedy the excess contribution until November 30, 2021.

Sangha v. Canada (Attorney General) - 2020 FC 712 - 2020-06-19

• - In 2016, Mr. Sangha contributed a total of $81,000 to his TFSA. His TFSA contribution room for 2016 was $44,592, resulting in an excess contribution amount in the account as at December 31, 2016.   [...]  • - The excess contribution remained in the TFSA until August 2018, when Mr. Sangha withdrew the excess amount.   [...]  He maintained the excess contribution in his TFSA until August 2018. [22] The 2017 and 2018 TFSA assessments indicate that the section 207.02 TFSA tax was imposed in respect to the following monthly excess amounts

Afshar v. Canada (Attorney General) - 2024 FC 333 - 2024-02-29

In other words, she over-contributed to her TFSA by $28, 990.43. [6] In the 2021 taxation year, Ms. Afshar’s TFSA contribution limit increased by $6,000, resulting in a reduction of her excess balance to -$22,990.43.   [...]  The letter elaborated, noting that over contributions result in “a tax equal to 1% of the highest excess TFSA amount in the month for each month that the excess amount remains in your account”.   [...]  [22] Section 207.02 of the ITA provides that individuals are subject to pay tax on excess TFSA contributions: Tax payable on excess TFSA amount Impôt à payer sur l’excédent CÉLI

Yew v. Canada (Revenue Agency) - 2022 FC 904 - 2022-06-15

[14] The TFSA Return assessed a tax liability on the applicant’s excess TFSA contributions in the amount of $1,784.34.   [...]  [18] The applicant’s August 7, 2020 letter stated that not knowing she over-contributed in 2019, the applicant contributed $6,000 to her TFSA account in 2020, which would also be an excess contribution.   [...]  Even though your TFSA excess contributions were unintentional, we do not consider misinterpreting your TFSA contribution limit to be a reasonable error.

Zazula v. Canada (Attorney General) - 2022 FC 1156 - 2022-08-02

The manager recommended that Mr. Zazula withdraw the excess contributions from his TFSA as soon as possible, as excess contributions are taxed at 1% for each month they remain in his TFSA. The CRA attached to the letter the TFSA contribution room statements from 2010 to 2018 for his reference.   [...]   of tax assessed on excess TFSA contributions, the tax must have arisen because of a reasonable error and the individual must have acted right away to remove the excess contributions from their TFSA. The Officer noted that Mr. Zazula did not remove the excess contributions from his TFSA over contributions for 2016 and 2017   [...]  [17] According to subsection 207.02 of the ITA, an individual over-contributing to his TFSA, has to pay a tax on this excess amount: Tax payable on excess TFSA amount

Gekas v. Canada (Attorney General) - 2019 FC 1031 - 2019-07-31

[3] In the 2016 taxation year, the Applicant had a TFSA contribution limit of $10,045.18. On January 8, 2016 he contributed $10,000 to his TFSA. He meant to make this contribution.   [...]  [9] In 2014, the Applicant’s TFSA contribution room was $5,500. On January 13, 2014, he contributed $5,500 to a TFSA account.   [...]  You were therefore previously notified of excess contributions. ... After a thorough review of the information submitted and the facts of your case, we have determined that you continued to make excess contributions to your TFSA in 2016, after you were notified by the Canada Revenue Agency about TFSA excess contributions

Keystone v. Canada (Attorney General) - 2023 FC 820 - 2023-06-09

[3] The Applicant, Mr. David Keystone, is a Canadian taxpayer who began contributing to his TFSA in 2014. [4] In 2015, the Applicant over-contributed to his TFSA. As a result, the CRA wrote to him in May 2016, notifying him that he had over-contributed to his TFSA and that he was required to withdraw the excess contribution  [...]  It explained that the Applicant had received the Education Letter in 2016 due to a previous over-contribution to his TFSA and that, upon notice, it is the taxpayer’s responsibility to withdraw any excess contributions and to keep and review accurate records to ensure they remain within their TFSA contribution room.   [...]   Applicant expressed his view that he was not at fault for his over-contribution. He reiterated that he was not aware that a contribution limit displayed in brackets signifies a negative amount (i.e., an excess) and that, upon learning of his over-contribution, he promptly removed the excess amount from his TFSA account.

Robitaille v. The Queen - 2019 TCC 200 - 2019-09-24

[21] Serious consequences flow from contributions to a TFSA in excess of the TFSA dollar limit for the year. In particular, section 207.02 of the Act imposes tax on an “excess TFSA amount”:   [...]  [22] An “excess TFSA amount” is defined in subsection 207.01(1) of the Act: • excess TFSA amount of an individual at a particular time in a calendar year means the amount, if any, determined by the formula   [...]  A is the total of all amounts each of which is a contribution made under a TFSA by the individual in the calendar year...; B is the individual’s unused TFSA contribution room at the end of the preceding calendar year;

Steinbach v. Canada (Attorney General) - 2022 FC 836 - 2022-06-07

[2] The Minister refused the Applicant’s request for a second review of his request for cancellation of tax on excess TFSA contributions he made for the 2019 tax year. II. Background Facts   [...]  [17] The question before this Court is whether the Minister’s decision to deny the Applicant’s request for relief of the tax on his excess TFSA contributions for 2019 was reasonable. [18] The Applicant argues that the 2019 excess contribution was an honest mistake, which he rectified immediately upon being notified of it.   [...]  [30] The Minister also acknowledged that although the Applicant’s TFSA excess contributions were unintentional, misinterpretation of the TFSA contribution limit is not considered a reasonable error.

Malcolm v. Canada (Attorney General) - 2023 FC 393 - 2023-03-22

The Income Tax Act gives us discretion to cancel all or part of any tax on excess TFSA situations. For such a cancellation to be granted, the tax must have arisen because of a reasonable error and the individual must have acted right away to remove the excess contributions of their TFSA.   [...]  [...] A review of your situation and our records show that the removal of all excess contributions did not occur. [...] Although you incurred losses in your TFSA, losses are not considered as withdrawals.   [...]  I have withdrawn the full excess of my TFSA, attach is a receipt of my withdrawal. I have no other funds or savings to help with the negative excess TFSA room.

Singh v. Canada (Attorney General) - 2022 FC 346 - 2022-03-14

[13] On January 1, 2016, the TFSA contribution limit was increased to $5,550. This change reduced the excess contribution amount in Ms. Singh’s TFSA to $11,302.42.   [...]  [14] Unaware of the excess contribution, Ms. Singh had contributed $10 per month to her TFSA by auto-debit during all of 2016.   [...]  [15] On January 1, 2017, the TFSA contribution limit for 2017 was again $5,500. This reduced the excess contribution amount of Ms. Singh to $5,922.42.

Rempel v. Canada (Attorney General) - 2021 FC 337 - 2021-04-19

It outlined the excess TFSA amounts and his penalty (at the time) at $1,099.97. [7] Between receiving the notice of assessment in July and October 25, 2019, Mr. Rempel withdrew the over contribution.   [...]  [23] The Respondent argued that the onus is on the taxpayer to know their contributions and limits, and the ITA does not put the onus on CRA. In 2017, Mr. Rempel contributed $18,762.50, resulting in an excess of $9,465.44 of contributions.   [...]  This then reduced his contribution room in the 2018 year to $3,944.44. Throughout 2018, his running excess in the TFSA ranged from $5,671.44 to $13.342.17 in various months, given his deposits and withdrawals.

Callahan v. The King - 2023 TCC 172 - 2023-12-20

[1] Michael Callahan (the “Appellant”) made excess contributions to his Tax-free savings account (“TFSA”) during the 2019 taxation year and, as a direct consequence of this, was assessed penalties and interest.   [...]  Since the contribution room for 2020 had increased to $6,000, he contributed that amount, thus inadvertently increasing his excess contributions to ($11,000).   [...]  [8] The Minister declined to do so, indicating that the Appellant had been notified about making excess contributions and the Assessment was ultimately confirmed. [9] At the hearing, the Appellant denied having been notified by CRA about excess contributions.