Tax-Free Savings Account (TFSA), Guide for Individuals (2024)

From: Canada Revenue Agency

RC4466(E) Rev. 23

The CRA's publications andpersonalized correspondence are available in braille, large print, e-text, or MP3for those who have a visual impairment. For more information, see About multiple formatsor call 1-800-959-8281.

La version française de ce guide est intitulée Guide du compte d'épargne libre d'impôt (CELI) pour les particuliers.

Unless otherwise stated, all legislative references are to the Income Tax Actor, where appropriate, the Income Tax Regulations.

Table of Contents

• Find out if this guide is for you
• Definitions
• What is a TFSA
• Types of TFSAs
• Who can open a TFSA
• How to open a TFSA
• Self-directed TFSA
• Contributions
• TFSA contribution room
• Where to find your TFSA contribution room information
• How to authorize a representative
• How to find your online mail
• How to know your TFSA contribution room
• How we receive your TFSA information
• Types of permitted investments
• Losses incurred within a TFSA investment
• Foreign funds
• "In kind" contributions
• Transfers from your RRSP
• Withdrawals from a TFSA
  • Making withdrawals
  • Replacing withdrawals
• Non-residents of Canada
• Impact on your government benefits and credits
• Qualifying transfers
  • Transfers between your own TFSAs
  • Transfers upon breakdown of marriage or common-law partnership
• Death of a TFSA holder
• Types of beneficiaries
• Successor holder
  • Excess TFSA amount at the time of death
  • Designated beneficiaries
  • General rules – Deposit or annuity contract
  • General rules – Arrangement in trust
  • Designation of an exempt contribution by a survivor
  • Donation to a qualified donee
• Management fees
• Tax payable on TFSAs
• Tax payable on excess TFSA amount
• Tax payable on non-resident contributions
• Tax payable on prohibited investments
• Tax payable on non-qualified investments
• Refund of taxes paid on non-qualified or prohibited investments
  • How to claim a refund
  • Obligations of the TFSA Issuer
• Tax payable on an advantage
• TFSA payment of taxes
  • Excess TFSA amount correspondence explained
  • Excess TFSA amount letter
  • The proposed TFSA return package
  • Responding to the proposed return package
• Waiver or cancellation of the TFSA taxes
• What to do if you disagree with your assessment
• Digital services
  • Digital services for individuals
  • My Account
  • MyCRA mobile web app
  • Receiving your CRA mail online
  • My Payment
• Related Forms and Publications
  • Forms
  • Information circulars and Income Tax Folios
  • Pamphlet
• For more information
  • If you need help
  • Direct deposit
  • Forms and publications
  • Electronic mailing lists
  • Tax Information Phone Service (TIPS)
  • Teletypewriter (TTY) users
  • CRA Service Feedback Program
    • Service complaints
    • Formal disputes (objections and appeals)
    • Reprisal complaint
• Due dates
• Cancel or waive penalties or interest

Find out if this guide is for you

This guide is for individuals who have opened or who are considering opening a tax-free savings account (TFSA). It gives general information on this investment opportunity including who is eligible to open a TFSA, what the contribution limits are, possible tax situations, non-resident implications, transfers on marriage or relationship breakdown, what happens when a TFSA holder dies, and various other topics. For more information on the TFSA, go to Tax-Free Savings Account.

This guide does not deal with every tax situation. It is not intended to cover all possible situations or to replace professional financial, tax, or estate planning services.

As with other important investment decisions, you should speak with your financial advisor or a representative at your financial institution to be sure you are aware of any conditions, limitations, or administrative fees that can apply.

We have included definitions of some of the terms used in this guide in theDefinitions section. You may want to read this before you start.

What's new

TFSA dollar limit

The annual TFSA dollar limit for 2023 is $6,500. The annual dollar limit is indexed to inflation.

Advantage – an advantage is any benefit or debt that is conditional on the existence of the TFSA, subject to certain exceptions for normal investment activities and conventional incentive programs.

An advantage also includes any benefit that is an increase in the total fair market value (FMV) of the property of the TFSA that is reasonably attributable to any one of the following:

• a transaction or event (or series) that would not have occurred in a normal commercial or investment context between arm’s length parties acting prudently, knowledgeably, and willingly, and one of the main purposes of which is to benefit from the tax exempt status of the TFSA
• a payment received in substitution for a payment for services rendered by the holder (or non-arm’s length person) or for a return on investment on non-registered property
• a swap transaction
• specified non-qualified investment income that has not been paid from the TFSA within 90 days of the holder receiving a notice from CRA requiring removal

An advantage also includes any benefit that is income or a capital gain that is reasonably attributable to one of the following:

• a prohibited investment
• a deliberate over-contribution to a TFSA

For more information on advantages, see Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, and TFSAs.

Arm's length –refers to a relationship or a transaction between personswho actin their separate interests. An arm's length transaction is generally a transaction that reflects ordinary commercial dealings between parties acting in theirseparate interests.

For more information see Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm's Length.

Common-law partner –a person who is not your spousewith whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. The person:

• has been living with you in a conjugal relationship and this current relationship has lasted at least 12 continuous months;

• is the parent of your child by birth or adoption
• has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support

Deliberate over contribution –a contribution that an individual makes tothe TFSA that results in, or increases, an excess TFSA amount, unless it is reasonable to conclude that the individual neither knew nor ought to have known that the contribution could result in liability for apenalty or tax. Income that is reasonably attributable, directly or indirectly, to a deliberate over-contribution is an advantage subject to the special tax on advantages.

Excess TFSA amount – the total of all contributions made by the holder to all their TFSAs at or before a particular time in the calendar year, excluding a qualifying transfer or an exempt contribution.

Minus all of the following amounts:

• the holder's unused TFSA contribution room at the end of the preceding calendar year
• the total of all withdrawals from the holder's TFSA in the preceding calendar year, other than a qualifying transfer or a specified distribution
• for a resident of Canada at any time in the year, the TFSA dollar limit for the calendar year; for any other case, nil
• the total of all withdrawals made in the calendar year from all of the holder's TFSAs, other than a qualifying transfer or a specified distribution, or the portion of the withdrawal that ismore thanthe excess TFSA amount determined at that time

For more information, see the definition Qualifying portion of a withdrawal.

Exempt contribution –a contribution made during the rollover period and designated as exempt by the survivor on prescribedForm RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA), in connection with a payment received from the deceased holder's TFSA.

Exempt period – period that begins when the holder dies and that ends at the end of the first calendar year that begins after the holder's death, or when the trust ceases to exist, if earlier.

Fair market value (FMV) – is generally considered to mean the highest price expressed in terms of money that can be obtained in an open and unrestricted market between informed and prudent parties, who are dealing at arm's length and under no compulsion to buy or sell.

For information on the valuation of securities of closely-held corporations, see Information Circular IC89-3, Policy Statement on Business Equity Valuations.

Holder – the individual who entered into the TFSA arrangement and, after the death of the holder, the individual's spouse or common-law partner (the survivor) if designated as the successor holder of the TFSA. The surviving spouse or common-law partner can designate a subsequent survivor as their successor holder.

Issuer –a trust company, a licensed annuities provider, a person who is, or is eligible to become, a member of the Canadian Payments Association, or a credit union with which an individual has a qualifying arrangement.

Non-arm's length – generally refers to a relationship or transaction between persons who are related to each other.

However, a non-arm’s length relationship might also exist between unrelated individuals, partnerships or corporations, depending on the circ*mstances. For more information, see the definition of Arm’s length.

For more information, see Income Tax Folio SI-F5-C1, Related Persons and Dealing at Arm's Length.

Non-qualified investment – any property that is not a qualified investment for the trust. For more information, see Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Prohibited investment – this is property to which the TFSA holder is closely connected. It includes any of the following:

• a debt of the holder
• a debt or share of, oran interest in, a corporation, trust or partnershipinwhich the holder has a significant interest (generally a 10% or greater interest, considering non arm's length holdings)
• a debtor share of, oraninterest in, a corporation, trust or partnershipwith which the holder, does not deal at arm's length

A prohibited investment does not include a mortgage loan that is insured by the Canada Mortgage and Housing Corporation or by an approved private insurer. It also does not include certain investment funds and certain widely held investments which reflect a low risk of self-dealing. For more information see Income Tax Folio S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Qualified donee – the Income Tax Actpermits qualified donees to issue tax receipts for donations they receive from individuals or corporations. Some examples of qualified donees are registered charities, Canadian municipalities, registered Canadian amateur athletic associations, the United Nations or one of their agencies, or universities outside Canada that accept Canadian students.

Qualified investment – an investment in properties, (except real property) including money, guaranteed investment certificates, government and corporate bonds, mutual funds, and securities listed on a designated stock exchange. The types of investments that qualify for TFSAs are generally similar to those that qualify for registered retirement savings plans. For more information, see Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs

Qualifying arrangement – an arrangement that is entered into after 2008 between an issuer and an individual (other than a trust) who is at least 18 years of age that is any of the following:

• an arrangement in trust with an issuer that is authorized in Canada to offer to the public its services as a trustee
• an annuity contract with an issuer that is a licensed annuities provider
• a deposit with an issuer that is a person who is a member, or is eligible to be a member, of the Canadian Payments Association, or a credit union that is a shareholder or member of a "central" for the purposes of the Canadian Payments Act

Qualifying portion of a withdrawal– the portion of a withdrawal from the TFSA (excluding a qualifying transfer ora specified distribution), made in the year, that was required to reduce or eliminate a previously determined excess TFSA amount.

Qualifying transfer –a direct transfer between a holder's TFSAs, or a direct transfer between a holder's TFSA and the TFSA of their current or former spouse or common-law partner if the transfer relates to payments under a decree, order, or judgment of a court, or under a written agreement relating to a division of property in settlement of rights arising from the breakdown of their relationship and they are living separate and apart at the time of the transfer.

Rollover period – the period that begins when the TFSA holder dies and ends at the end of the calendar year that follows the year of death.

Self-directed TFSA –a vehicle that allows you to build and manage your own investment portfolio by buying and selling various types of investments.

Specified distribution –a distribution fromthe TFSA to the extent that it is, or is reasonably attributable to, an amount that is any of the following:

• an advantage
• specified non-qualified investment income
• income that is taxable in a TFSA trust
• income earned on excess contributions or non-resident contributions

A specified distribution does not create or increase unused TFSA contribution room in the following year, nor does it reduce or eliminate an excess TFSA amount.

Specified non-qualified investment income – income (excluding the dividend gross-up), or a capital gain that is reasonably attributable, directly or indirectly, to an amount that is taxable for any TFSA of the holder (for example, subsequent generation income earned on non-qualified investment income or on income from a business carried on bythe TFSA).

Spouse –a person to whom you are legally married.

Successor holder – in provinces or territories that permitthe TFSA beneficiary designation, a successor holder is a spouse or common-law partner of the holder at the time of death, named by the deceased as the successor holder of the TFSA, who acquires all of the rights of the holder under the arrangement including the right to revoke any beneficiary designation. This spouse or common-law partner becomes the new account holder.

Survivor – an individual who is, immediately before the TFSA holder's death, a spouse or common-law partner of the holder.

Survivor payment –a payment received by a survivor during the rollover period, as a consequence of the holder's death, directly or indirectly out of or under an arrangement that ceased to be a TFSA because of the holder's death.

Swap transaction – is any transfer of property between the TFSA and its holder (or non-arm's length person). Exceptions are provided for contributions to and distributions from the TFSA, purchase and sale transactions between the TFSA and another TFSA of the holder, and transactions relating to insured mortgages. For more information on swap transactions, and applicable transitional rules, see Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, and TFSAs

Unused TFSA contribution room – the amount, either positive or negative, at the end of a particular calendar year after 2008, determined by the holder's unused TFSA contribution room at the end of the year preceding the particular year.

Plus:

• The total amount of all withdrawals made from the holder's TFSA in the preceding calendar year, excluding a qualifying transfer or a specified distribution.
• The TFSA dollar limit for the particular year if, at some point in that year, the individual is at least 18 yearsof ageand a resident of Canada. In all other cases, the amount is nil.

Minus:

• The total of all TFSA contributions made by the holder in the particular year excluding a qualifying transfer or an exempt contribution.

What is a TFSA

The TFSA program began in 2009. It is a way for individuals who are 18 years of age orolder and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime.

Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.

Administrative or other fees in relation to a TFSA and any interest on money borrowed to contribute to a TFSA are not tax-deductible.

Types of TFSAs

There are three types of TFSAs that can be offered: a deposit, an annuity contract, and an arrangement in trust.

Banks, insurance companies, credit unions, and trust companies can all issue TFSAs.

For more information about a certain type of TFSA, contact a TFSA issuer.

Who can open a TFSA

Any individual that is a resident of Canada who has a valid SIN and who is 18 years of age or older is eligible to open a TFSA.

Any individual that is a non-resident of Canada who has a valid SIN and who is 18 years of age or older is also eligible to open a TFSA. However, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account. For more information, see “Non-residents of Canada”.

You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you will be able to contribute up to the full TFSA dollar limit for that year.

How to open a TFSA

You can have more than one TFSA at any given time, butthe total amount you contribute to your TFSAs cannot be more than your available TFSA contribution room for that year.

To open a TFSA, you must do both of the following:

1. Contact your financial institution, credit union, or insurance company (issuer).

2. Provide the issuer with your SIN and date of birth so the issuer can register your qualifying arrangement as a TFSA. Your issuer could ask for supporting documents.

Self-directed TFSA

You can set up a self-directed TFSA if you prefer to build and manage your own investment portfolio by buying and selling different types of investments. For more information, contact a TFSA issuer.

Contributions

You do not need to have earned income to contribute to a TFSA. The maximum amount that you can contribute to your TFSA is limited by your TFSA contribution room.

All TFSA contributions made during the year, including the replacement or re-contribution of withdrawals made from a TFSA, will count against your contribution room.

At any time in the year, if you contribute more than your available TFSA contribution room you will have to pay a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount stays in your account. For more information, see Tax payable on excess TFSA amount.

As the account holder, you are the only person who can do the following with your TFSA:

• make contributions
• make withdrawals
• determine how funds are invested

You can give your spouse or common-law partner money so that they can contribute to their own TFSA, and this amount or any earned income from that amount will not be allocated back to you. The total contributions you each make to your own TFSAs cannot be more than your TFSA contribution room. For more information, see TFSA contribution room.

Management fees related to a TFSA trust and paid by the holder are not considered to be contributions to the TFSA. The payment of investment counsel, transfer, or other fees by a TFSA trust will not result in a distribution (withdrawal) from the TFSA trust.

TFSA contribution room

Your TFSA contribution room is the maximum amount that you can contribute to your TFSA.

Only contributions made under a valid SIN are accepted as TFSA contributions.

If you were 18 or older in 2009, your TFSA contribution room grows each year even if you do not file an income tax and benefit return or open a TFSA.

If you turned 18 after 2009, your TFSA contribution room starts in the year you turned 18 and your TFSA contribution room accumulates every year after that year.

Investment income earned by, and changes in the value of your TFSA investments will not affect your TFSA contribution room for current or future years.

The annual TFSA dollar limit for each of the years from 2009 to 2023 are:

Where to find your TFSA contribution room information

Your TFSA contribution room information can be found by using one of the following services:

• My Account for Individuals.
• MyCRA at Mobile apps – Canada Revenue Agency.
• Represent a Clientif you have an authorized representative.
• Tax Information Phone Service (TIPS) at 1-800-267-6999.

In addition, if you want to receive a TFSA Room Statement, call us. You can also ask for a TFSA Transaction Summary that shows the information that we received from your TFSA issuer(s) about your contributions and withdrawals.

If the information that we have about your TFSA transactions is not complete or if you have made contributions to your TFSA this year, use Form RC343, Worksheet – TFSA contribution room, to calculate your TFSA contribution room for the current year. If we have deemed your unused TFSA contribution room to be a specific amount, do not use this form; call us for more information.

Youmust keep records about your TFSA transactions to make sure that your contributions do not go over your TFSA contribution room. We will keep track of an individual's contribution room and determine the available TFSA contribution room for each eligible individual based on information provided annually by the TFSA issuers.

How to authorize a representative

You can authorize a representative (such as your spouse or common-law partner, tax preparer, or accountant) to get information about your tax matters and give us information on your behalf. We will accept information from and/or provide information to your representative only after we are satisfied that you have authorized us to do so through My Account for IndividualsorRepresentative authorization.

Your authorization will stay in effect until any one of the following situations applies:

• it is cancelled by you or your representative
• it reaches the expiry date you choose
• we receive notification of your death

You or your representative can cancel the consent you gave by telephone or in writing.

If you were the legal representative of a deceased person, see Guide T4011, Preparing Returns for Deceased Persons, to know what documents are required.

Learn more about representatives by going toRepresentative authorization.

How to find your online mail

Some Tax-Free Savings Account letters are available for online mail. Once you are registered for online mail, the CRA will send you an email notification when you have new mail to view in your secure online account. Correspondence available through online mail will no longer be printed and mailed through Canada Post. To learn more, go to Email notifications for individuals.

How to know your TFSA contribution room

The TFSA contribution room is the total amount of all of the following:

• the TFSA dollar limit of the current year
• any unused TFSA contribution room from previous years
• any withdrawals made from the TFSA in the previous year

The TFSA contribution room will not accumulate for any year during which the individual is a non-resident of Canada throughout the entire year.

The TFSA dollar limit is not prorated in the year when an individual meets any one of the following conditions:

• turns 18 years of age
• dies
• becomes a resident or a non-resident of Canada

How we receive your TFSA information

By the last day of February of the following year, all issuers are required to electronically send a TFSA record to us for each individual who has a TFSA.

If you disagree with any of the information on your TFSA Room Statement, or TFSA Transaction Summary, including dates or amounts of contributions or withdrawals which your TFSA issuer has provided to us, contact your TFSA issuer. If any information initially provided by the issuer about your account is incorrect, the issuer must send us a revised record so that we can update ourrecords.

You can view your TFSA Transaction Summary online. Go to My Account for Individuals to see all the contributions and withdrawals made to your TFSA.

Types of permitted investments

Generally, the types of investments that are permitted in a TFSA are the same as those permitted in a registered retirement savings plan (RRSP). These would include the following types:

• cash
• mutual funds
• securities listed on a designated stock exchange
• guaranteed investment certificates
• bonds
• certain shares of small business corporations

Losses incurred within a TFSA investment

Depending on the type of investment held in your TFSA, you could incur a loss in your original investment. Any investment losses within a TFSA are not considered a withdrawal and therefore are not part of your TFSA contribution room.

Foreign funds

You can contribute foreign funds to a TFSA. However, yourissuer will convert the funds to Canadian dollars using the exchange rate on the date of the transaction when reporting this information to us. The total amount of your contribution, in Canadian dollars, cannot be more than your TFSA contribution room.

If dividend income from a foreign country is paid to a TFSA, the dividend income could be subject to foreign withholding tax.

"In kind" contributions

You can also make "in kind" contributions (for example, securities you hold in a non-registered account) to your TFSA, as long as the property is a qualified investment.

You will be considered to have disposed of the property at its FMV at the time of the contribution. If the FMV is more than the cost of the property, you will have to report the capital gain on your income tax and benefit return. However, if the cost of the property is more than its FMV, you cannot claim the resulting capital loss. The amount of the contribution to your TFSA will be equal to the FMV of the property.

Transfers from your RRSP

If you transfer an investment from your RRSP to your TFSA, you will be considered to have withdrawn the investment from the RRSP at its FMV. That amount will be reported as an RRSP withdrawal and must be included in your income in that year. You can claim the tax withheld on the withdrawal at line 43700 of your income tax and benefit return. If the transfer into your TFSA takes place immediately, the same value will be used as the amount of the contribution to the TFSA. If the contribution to the TFSA is deferred, the amount of the contribution will be the FMV of the investment at the time of that contribution.

Except in certain circ*mstances, you cannot exchange securities for cash, or other securities of equal value, between your accounts, either between two registered accounts or between a registered and a non-registered account (swap).

Withdrawals from a TFSA

A qualifying transfer from one TFSA to another isnot considered to be a withdrawal.

Making withdrawals

Depending on the type of investment held in your TFSA, you can generally withdraw any amount from the TFSA at any time. Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year.

Withdrawals, excluding qualifying transfers and specified distributions, made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.

Replacing withdrawals

If you decide to replace or re-contribute all or a part of your withdrawals into your TFSA in the same year, you can only do so if you have available TFSA contribution room. If you re-contribute but do not have contribution room, you will have over-contributed to your TFSA in the year. You will be subject to a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount stays in your account. For more information on withdrawing amounts from your TFSA, contact your TFSA issuer.

Non-residents of Canada

You may be considered a non-resident for tax purposes ifyou meet any of the following conditions:

• you normally, customarily, or routinely live in another country and are not considered a resident of Canada
• you do not have residential ties in Canada, and either one of the following situations applies:
  • you live outside Canada throughout the tax year
  • you stay in Canada for less than 183 days in the tax year

Even if you no longer live in Canada, you may have residential ties in Canada that are enough for you to be considered a factual or deemed resident of Canada. In these cases, the regular rules for opening a TFSA still apply.

Residential ties include:

• a home in Canada
• a spouse or common-law partner or dependants in Canada
• personal property in Canada, such as a car or furniture
• social ties in Canada

Other ties that may be relevant include:

• Canadian driver's license
• Canadian bank accounts or credit cards
• hospitalization and medical insurance coverage from a province or territory of Canada

For more information on residential ties, see Income Tax Folio: S5-F1-C1, Determining an Individual's Residence Status, or call the International Enquiries for Individuals and Trusts at one of the following numbers:

• 1-800-959-8281 (from anywhere in Canada and the United States)
• 613-940-8495 (from outside Canada and the United States)

We accept collect calls by automated response. You may hear a beep and experience a normal connection delay.

If you become a non-resident of Canada, or are considered to be a non-resident for income tax purposes:

• you will be allowed to keep your TFSA and you will not be taxed in Canada on any earnings in the account or on withdrawals from it
• no TFSA contribution room will accrue for any year throughout which you are a non-resident of Canada
• any withdrawals made during the period that you were a non-resident will be added back to your TFSA contribution room in the following year, but will only be available if you re-establish your Canadian residency status for tax purposes

You can contribute to a TFSA up to the date that you become a non-resident of Canada. The annual TFSA dollar limit is not pro-rated in the year of emigration or immigration.

If you make a contribution, except for a qualifying transfer or an exempt contribution, while you are a non-resident, you will be subject to a 1% tax for each month the contribution stays in the account. You may also be liable for other taxes. For more information, see Tax payable on non-resident contributions.

Impact on your government benefits and credits

Your federal income-tested benefits and credits such as Old Age Security (OAS) benefits, the Guaranteed Income Supplement (GIS), or Employment Insurance (EI) benefits will not be reduced as a result of the income you earn in your TFSA or the amount you withdraw from your TFSA.

The income earned in the account or amounts withdrawn from a TFSA will also not affect your eligibility for federal credits, including the Canada child benefit (CCB), the Canada workers benefit (CWB), the goods and services tax/harmonized sales tax (GST/HST) credit, or the age amount. You can withdraw money from the TFSA at any time, forany reason, with no tax consequences, and without affecting your eligibility for federal income-tested benefits and credits.

You can use My Account for Individuals or the MyBenefits CRA Mobile apps to securely access your benefit information.

Qualifying transfers

Transfers between your own TFSAs and those completed upon the breakdown of a marriage or common law partnership are considered qualifying transfers. All qualifying transfers must be completed by a financial institution.

Transfers between your own TFSAs

If you want to transfer funds from one TFSA to another or from one issuer to another, there will be no tax consequences if your issuer completes a direct transfer on your behalf. For more information, contact your issuer.

Transfers upon breakdown of marriage or common-law partnership

When there is a breakdown in a marriage or common-law partnership, an amount can be transferred directly from one individual's TFSA to the other's TFSA without affecting either individual's contribution room. The transfer must be completed directly between the TFSAs by the issuer.

If you are in this situation, you must meet both of the following conditions:

• you and your current or former spouse or common-law partner were living separate and apart at the time of the transfer
• you are entitled to receive, or required to pay, the amount under a decree, order, or judgment of a court, or under a written separation agreement to settle rights arising out of your relationship on or after the breakdown of your relationship

When these conditions are met, the transfer is a qualifying transfer and will not reduce the recipient's eligible TFSA contribution room. Since this transfer is not considered a withdrawal, the transferred amount will not be added back to the transferor's contribution room at the beginning of the following year.

Also, the transfer will not remove any excess TFSA amount, if applicable, in the payer's TFSA.

Death of a TFSA holder

After the holder of a TFSA dies, possible tax implications can vary depending on one or more of the following factors:

• the type of TFSA
• the type of beneficiary(ies)
• whether any income was earned after the date of death
• how long, after the date of death, before amounts are distributed to beneficiaries

Depending on the factors that apply, the following can be affected:

• whether the deceased's TFSA continues to exist or is considered to have ceased
• how income earned after the date of death can be reported and taxed
• whether a beneficiary can contribute amounts received to their own TFSA, within certain limits, and whether such a contribution would affect their unused TFSA contribution room

Types of beneficiaries

The types of beneficiaries for TFSA purposes are:

• a survivor who has been designated as a successor holder
• designated beneficiaries (for example, a survivor who has not been named as a successor holder), former spouses or common-law partners, children, and qualified donees

Determining the type of beneficiary is the first important step. The type of beneficiary can be affected by:

• designations which could have been made in the deceased holder's TFSA contract
• the terms of the deceased holder's will, if there is one
• provincial or territorial succession legislation

Successor holder

In provinces or territories that recognize a TFSA beneficiary designation, the survivor can be designated as a successor holder in the TFSA contract or in the deceased holder's will.

A survivor can be named in the deceased holder's will as a successor holder to a TFSA, if the terms of the will state that the successor holder receives all of the holder's rights including the unconditional right to revoke any beneficiary designation, or similar direction imposed by the deceased holder under the arrangement or relating to property held in connection with the arrangement.

If named as the successor holder, the survivor will become the new holder of the TFSA immediately upon the death of the original holder.

This rule applies for all three types of TFSAs: deposit, annuity contract, and trust arrangement.

The deceased holder is not considered to have received an amount from the TFSA at the time of death if the holder named their survivor as the successor holder of the TFSA. In this situation, the TFSA continues to exist and the successor holder assumes ownership of the TFSA contract and all of its contents. However, where the TFSA contract is a trust arrangement, the trust continues to be the legal owner of the property held in the TFSA.

The TFSA continues to exist and both its value, at the date of the original holder's death, and any income earned after that date continue to be sheltered from tax under the new successor holder.

Except in cases where an excess TFSA amount remained in the deceased holder's TFSA at the time of their death, the successor holder's unused TFSA contribution room is unaffected by their having assumed ownership of the deceased holder's account.

The issuer will notify us of this change in ownership.

The successor holder, after taking over ownership of the deceased holder's TFSA, can make tax-free withdrawals from that account. The successor holder can also make new contributions to that account, depending on their own unused TFSA contribution room.

If the successor holder already had their own TFSA, then they would be considered as the holder of two separate accounts. If they wish, they can directly transfer part or all of the value from one to the other (for example, to consolidate accounts). This would be considered as a qualifying transfer and would not affect available TFSA contribution room.

In certain cases, a survivor, designated as the successor holder of a TFSA, could not have a valid Canadian social insurance number (SIN), which is one of the eligibility requirements for opening a TFSA. If the survivor is a Canadian resident, they should apply to Service Canada to get a valid Canadian SIN.

If the survivor is a non-resident, they should ask for an individual tax number from the CRA by completing Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents.

Excess TFSA amount at the time of death

If, at the time of death, there is an excess TFSA amount in the deceased holder's TFSA, a tax of 1% per-month applies to the deceased holder on the highest excess TFSA amount for each month in which the excess stays in the TFSA, up to and including the month of death.The legal representativemust file Form RC243, Tax-Free Savings Account (TFSA) Return, and Form RC243-SCH-A, ScheduleA– Excess TFSA Amounts, for that period.

Also, the successor holder is deemed to have made, at the beginning of the month following the date of death, a contribution to their TFSA equal to the amount by which the excess TFSA amount is more than the total FMV, at the date of the holder's death, of all property under any arrangements that ceased to be a TFSA because of the holder's death. If that contribution creates an excess TFSA amount in the successor holder's TFSA, they will be subject to a tax of 1% per month on the highest amount for each month they have an excess contribution.

Designated beneficiaries

Designated beneficiaries can include a survivor who has not been named as a successor holder, former spouses or common-law partners, children, a designated subsequent survivor holder who is the new spouse or common-law partner of the successor holder, and qualified donees.

A designated beneficiary will not have to pay tax on payments made out of the TFSA, as long as the total payments do not exceed the FMVof all the property held in the TFSA at the time of the holder's death.

Beneficiaries (other than a survivor) can contribute any of the amounts they receive to their own TFSA as long as they have unused TFSA contribution room available.

A survivor who is a beneficiary has the option to contribute and designate all or a portion of a survivor payment as an exempt contribution to their own TFSA. As long as they meet certain conditions and limits, this transaction will not affect their own unused TFSA contribution room. For more information, see Designation of an exempt contribution by a survivor.

If, at the time of death, there was an excess TFSA amount in the deceased holder’s TFSA, a tax of 1% per month is payable on the highest excess amount for each month the excess stayed, up to and including the month of death. The legal representative must file Form RC243, Tax-Free Savings Account (TFSA) Return, and Form RC243-SCH-A, Schedule A– Excess TFSA Amounts.

If no successor holder or beneficiary is designated in the TFSA contract or will, the TFSA property is directed to the deceased holder's estate and distributed in accordance with the terms of the deceased holder's will.

General rules– Deposit or annuity contract

If there is no successor holder, the TFSA ceases to exist when the holder of a deposit or an annuity contract under a TFSA dies. The holder is considered to have disposed of the contract or the deposit immediately before the time that the TFSA ceased to exist for an amount equal to the FMV of all the property held in the TFSA at the time of death.

After the holder's death, the deposit or annuity contract is considered to be a separate contract and is no longer considered as a TFSA. All earnings that grow after the holder's death will be taxable to the beneficiary.

The normal rules apply for reporting income or gains accrued after the date of death, depending on the specific characteristics of the deposit or annuity contract. For example, interest earned would be reported on a T5, Statement of Investment Income.

General rules– Arrangement in trust

If there is no successor holder, a TFSA that is an arrangement in trust is deemed to continue and it stays a non-taxable trust until the end of the exempt period.

All income earned during the exempt period and paid to the beneficiaries, will be included in their income, while earnings that accrued before death remain exempt. In other words, any amount up to the FMV of the deceased holder's TFSA as of the date of death can be paid to beneficiaries, without them having to report any amount as income. Any amount paid to beneficiaries that represents an increase in the FMV after the date of death is taxable to the beneficiaries and has to be reported by them as income. Such payments will appear in box 134, "Tax-Free Savings Account (TFSA) taxable amount" in the "Other information" section of a T4A, Statement of Pension, Retirement, Annuity, and Other Income.

The trust has the exempt period within which to distribute both the taxable and non-taxable amounts. The trustee will assign the part of each payment that represents non-taxable FMV at the date of death with the rest being taxable.

Payments of amounts earned above the FMV made by the trust to a non-resident beneficiary, including a non-resident survivor, from a deceased holder's TFSA during the exempt period are reported on an NR4 slip, Statement of Amounts Paid or Credited to Non-Residents of Canada. These payments are subject to non-resident withholding tax.

If the trust continues to exist beyond the end of the exempt period (for example, not all amounts from the deceased's TFSA have been paid to beneficiaries), it will be taxable from that point forward. It becomes a taxable inter vivos trust with a tax year beginning January1st of the following calendar year. The trust will be treated as having disposed of and immediately reacquired its property for its FMV at that time. For as long as it continues to exist, the trust would itself be taxable on any undistributed income (including, for its first tax year, any undistributed income or gains during the exempt period) and required to annually file a T3RET, T3 Trust Income Tax and Information Return. The trust will also be required to prepare a T3, Statement of Trust Income Allocations and Designations in that year or later years for any distributions of taxable amounts to beneficiaries.

Designation of an exempt contribution by a survivor

If designated as a beneficiary, the survivor has the option to contribute and designate all or a portion of a survivor payment as an exempt contribution to their own TFSA, without affecting their own unused TFSA contribution room, subject to certain conditions and limits.

Beneficiaries (other than the survivor) who receive a payment from the deceased holder's TFSA cannot contribute and designate any amount as an exempt contribution.

For the survivor to designate an exempt contribution, the amount must be received and contributed to their TFSA during the rollover period. Also, the survivor must designate their survivor payments as an exempt contribution on Form RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA), and send the designation within 30 days after the day the contribution is made or at a later time as permitted by the Minister of National Revenue.

The total exempt contributions designated during the rollover period cannot exceed the FMV of the deceased holder's TFSA at the time of death.

Generally, if the TFSA of the deceased holder includes an excess TFSA amount at the time of death, if payments are being received by more than one survivor, or if the survivor payment and/or the contribution is made after the rollover period, no amount of the survivor payment can be designated as an exempt contribution. If any of these circ*mstances are present, call us to find out whether a designation can still be made.

Donation to a qualified donee

If a qualified donee was named as a beneficiary of the deceased holder's TFSA, the transfer of funds to the qualified donee must generally occur within the 36-month period after the holder's death. If necessary, once the donation has been completed, it is possible to ask to have the deceased's income tax and benefits return for the year of death changed to claim the charitable donation tax credit.

Management fees

Management fees related to a TFSA trust and paid by the holder are not considered to be contributions to the TFSA. The payment of investment counsel, transfer, or other fees by a TFSA trust will not result in a distribution (withdrawal) from the TFSA trust.

Tax payable on TFSAs

Generally, interest, dividends, or capital gains earned on investments in a TFSA are not taxable—either while held in the account or when withdrawn.

There are, however, certain circ*mstances under which one or more taxes could be payable with respect to a TFSA. The following sections provide information and examples of when and how these taxes are payable, and by whom.

Normally, in most TFSA situations, there is no tax payable, and therefore, a TFSA return is not required; however, where one or more of TFSA taxes are payable, a TFSA return must be filled out and sent by June 30 of the year following the calendar year in which the tax arose.

Tax payable on excess TFSA amount

You have an excess TFSA amount at any time in a year as soon as the total of all TFSA contributions you made in the year (other than a qualifying transfer or an exempt contribution) exceeds the total of your TFSA contribution room at the beginning of the year, plus any qualifying portion of a withdrawal made in the year up to that time.

The qualifying portion of the withdrawal is the amount of the withdrawal or the previously determined excess TFSA amount, whichever is less.

For more information, see the definition Qualifying portion of a withdrawal.

Any portion of a withdrawal that does not reduce or remove a previously determined excess TFSA amount is not a qualifying portion of the withdrawal and cannot be used to reduce or remove any future excess TFSA amount that can be created. For more information, see examples 1, 2 and 3 that follows.

If, at any time in a month, you have an excess TFSA amount, you are liable to a tax of 1% on your highest excess TFSA amount in that month. For more information, see example 4 that follows.

For any year in which tax is payable by the holder of a TFSA on an excess TFSA amount in their account, it is necessary to fill out and sendForm RC243, Tax-Free Savings Account (TFSA) Return, and Form RC243-SCH-A, ScheduleA – Excess TFSA Amounts.

For contributions made after October16,2009, a benefit that is income or a capital gain, that is reasonably attributable to deliberate over contributions will be considered an advantage and treated accordingly. For more information, see Tax payable on an advantage.

Tax payable on non-resident contributions

If, at any time during the year, your TFSA contains contributions (other than a qualifying transfer or an exempt contribution) you made while a non-resident of Canada, you will be subject to a tax of 1% per month on these contributions.

For any year in which tax is payable by the holder of a TFSA on contributions made while a non-resident, it is necessary to fill out and send Form RC243, Tax-Free Savings Account (TFSA) Return, and Form RC243-SCH-B, Schedule B– Non-Resident Contributions to a Tax-Free Savings Account (TFSA).

Tax payable on prohibited investments

If the TFSA trust acquires a prohibited investment, or if previously acquired property becomesprohibited, the investment will be subject to a special tax equal to 50% of the FMV of the investment, and the holder must fileForm RC243, Tax-Free Savings Account (TFSA) Return.

The tax is refundable in certain circ*mstances. For more information, see Refund of taxes paid on non-qualified or prohibited investments.

If the prohibited investment ceases to be a prohibited investment while it is held by the TFSA trust, the TFSA trust is considered to have disposed of and immediately re-acquired the property at its FMV.

The holder is also liable for the 100% advantage tax on income earned and capital gains realized on prohibited investments.

The 100% advantage tax applies to income earned, and the portion of any realized capital gain that accrued, regardless of when the prohibited investment generating the income or gain was acquired.

For more information, see Income Tax Folio S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs.

Tax payable on non-qualified investments

If the TFSA trust acquired a non-qualified investment, or if a previously acquired property becomes non-qualified investment, the investment will be subject to a special tax. The tax is equal to 50% of the FMV of the property at the time that it was acquired or that it became non-qualified, and the holder must file Form RC243, Tax-Free Savings Account (TFSA) Return.

The tax is refundable in certain circ*mstances. For more information, see Refund of taxes paid on non-qualified or prohibited investments.

Each person who is a holder is also liable for the 100% advantage tax on specified non-qualified investment income if this income is not withdrawn promptly.

For more information, see IncomeTax FolioS3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs.

Refund of taxes paid on non-qualified or prohibited investments

You could be entitled to a refund of the 50% tax on non-qualified or prohibited investments if the investment was disposed of, or ceased to be a non-qualified or prohibited investment, before the end of the calendar year after the year in which the tax arose (or such later time as is permitted by the Minister of National Revenue).

However, no refund will be issued if it is reasonable to expect that the holder knew, or should have known, that the investment was or would become a non-qualified or a prohibited investment.

The refund applies to the 50% tax on non-qualified or prohibited investments but not to the 100% tax on advantages.

How to claim a refund

To claim a refund, you must:

• send your request in writing (you can attach it to Form RC243)
• attach the appropriate documents detailing the information relating to the acquisition and disposition of the non-qualified or prohibited property (you can attach the written request and supporting documents to FormRC243)

The documents must contain the following:

• name and description of the property
• number of shares or units
• date the property was acquired or became non‑qualified or prohibited property
• date of the disposition or the date that the property became qualified or ceased to be prohibited

If the disposition took place in the same year as the acquisition, enter the refundable amount on the line in Section 2 of the TFSA return, and attach the documents to your return. If the property disposed of was acquired in a previous year, send your request and the documents to:

TFSA Processing Unit
Canada Revenue Agency
Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

Or

TFSA Processing Unit
Canada Revenue Agency
WinnipegTax Centre
Post Office Box14000, Station Main
WinnipegMBR3C 3M2

Obligations of the TFSA issuer

The issuer of a TFSA must exercise the care, diligence and skill of a reasonable prudent person to minimize the possibility that a trust governed by the arrangement holds a non-qualified investment.

If the issuer fails to comply with this obligation, the issuer is liable to a penalty under the Income Tax Act (ITA).

The issuer is also required to notify the holder of the TFSA in prescribed Form and manner before March of a calendar year, if at any time in the preceding year the TFSA trust acquired or disposed of a non-qualified investment, or if an investment became or ceased to be a non-qualified investment.

Tax payable on an advantage

If the holder or a person not dealing at arm’s length with the holder (including the TFSA itself) was provided with an advantage in relation to their TFSA during the year, a 100% tax is payable which is:

• in the case of a benefit, the FMV of the benefit
• in the case of a loan or a debt, the amount of the loan or debt

For more information, see Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs RDSPs, and TFSAs.

TFSA payment of taxes

Most TFSA holders have no tax payable related to their TFSA investments, and no TFSA tax return has to be filed. However, when TFSA taxes are applicable for a year, Form RC243, Tax-Free Savings Account (TFSA) Return, must be filed by June 30, of the following year. Any tax owing must also be paid by that date.

Form RC243-SCH-A, Schedule A – Excess TFSA Amounts, and Form RC243-SCH-B, Schedule B – Non-Resident Contributions to a Tax-Free Savings Account (TFSA), will assist you in determining your tax liability.

If a TFSA return is required but has not been filed, we can use information provided by your issuers to calculate any tax payable by you.

You can view filed TFSA returns and schedules online at My Account for Individuals.

Excess TFSA amount correspondence explained

The CRA cansend out a letter or a proposed TFSA return to Canadians who, under certain situations, may have over contributed to their TFSA. You can also receive a proposed TFSA return if you made contributions to your TFSA while you were not a resident of Canada.

Excess TFSA amount letter

If you receive an excess TFSA amount letter and you have already removed the excess TFSA amount, you do not have to do anything else. If you have not removed the excess, it should be removed immediately. For information on your current year room limit, go to My Account (for your room limit as of January 1) or complete Form RC343, Worksheet – TFSAcontribution, if you have contributed to your TFSA in the current year.

The proposed TFSA return package

The proposed TFSA return package normally includes the following:

• Cover letter – It provides general information about TFSA rules and instructions regarding what you need todo to respond to the proposed return.
• RC243-P, Proposed Tax-Free Savings Account (TFSA) Return – This proposed TFSA return shows the taxes wehave calculated and is based on the information we received from your issuers. The proposed TFSA return is not a formal assessment of tax.

Responding to the proposed return package

This proposed return does not represent a formal assessment of tax. Although you cannot file a notice ofobjection on a proposed TFSA return, the following options are available to you:

1. If you agree with the information on the TFSA return, sign, date, and include your social insurance number. You can make your payment electronically, by going to Pay now with My Payment. We will issue an assessment based on this return.

2. If you do not agree with the TFSA return and you would like us to review your situation, send a letter to the address indicated below. Include a detailed explanation and any additional documentation you have about the excess contributions along with proof that your excess TFSA amount has been corrected.

TFSA Processing Unit
Canada Revenue Agency
Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

Or

TFSA Processing Unit
Canada Revenue Agency
WinnipegTax Centre
Post Office Box14000, Station Main
WinnipegMBR3C 3M2

We will review your request and send you a letter explaining our decision. If we do not receive a response from you, we will issue anassessment based on the information on file. This assessment will include any penalties and interest that could apply.

Waiver or cancellation of the TFSA taxes

We can waive or cancel all or part of the taxes if we determine it is fair to do so after reviewing all factors, including whether:

• the tax arose because of a reasonable error
• the extent to which the transaction or series of transactions that gave rise to the tax also gave rise to another tax under the Income Tax Act
• the extent to which payments have been made from the person’s TFSA

The waiver is limited to tax paid under Part XI.01 and not taxes paid under any other Part of the Income Tax Act.

To consider your request, we need a letter that explains why the tax liability arose, and why it would be fair to cancel or waive all or part of the tax. Send your letter to one of the following addresses:

TFSA Processing Unit
Canada Revenue Agency
Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

Or

TFSA Processing Unit
Canada Revenue Agency
WinnipegTax Centre
Post Office Box14000, Station Main
WinnipegMBR3C 3M2

What to do if you disagree with your assessment

If you disagree with the assessment or reassessment of your TFSA tax payable, contact us for more information. If you still disagree, you can make a formal objection by sending a filled out Form T400A, Notice of Objection– Income Tax Act, or a signed letter to the Chief of Appeals at your tax services office or tax centre within 90 days of the date of the notice of assessment or notice of reassessment.

For more information, see Pamphlet P148, Resolving your Dispute: Objections and Appeal Rights under the Income Tax Act.

Digital services

Digital services for individuals

The CRA’s digital services are fast, easy, and secure!

My Account

My Account lets you view and manage your personal income tax and benefit information online. Find out how to register at My Account for Individuals.

MyCRA mobile web app

The MyCRA mobile web app lets you access key portions of your tax information. Access the app at Mobile apps – Canada Revenue Agency.

Use My Account or MyCRA to:

• view your benefit and credit information
• view your notice of assessment
• change your address, direct deposit information, marital status, and information about children in your care
• manage notification preferences and receive email notifications when important changes are made on your account
• check your TFSA contribution room and RRSP deduction limit
• check the status of your tax return
• make a payment to the CRA online with My Payment or a pre-authorized debit (PAD) agreement, or create a QR code to pay in person at Canada Post
• view uncashed cheques and request a duplicate payment

You can use My Account to:

• view and print your proof of income statement
• submit documents to the CRA
• authorize a representative
  
• submit an audit enquiry
• link between your CRA My Account and Employment and Social Development Canada (ESDC) My Service Canada Account

Receiving your CRA mail online

You will receive email notifications when your CRA mail, like your notice of assessment, is available in your account. You can manage your notification preferences in My Account or MyCRA.

For more information, go to Email notifications from the CRA – Individuals.

My Payment

My Payment is an electronic payment service offered by the CRA that allows individuals and businesses to make payments directly to the CRA online using their bank access cards Interac Online®, Visa Debit®, or Debit MasterCard®.

Use this service to make a payment to one or more CRA accounts in one simple transaction.

For more information, go to Pay now with My Payment.

Related forms and publications

Forms

• RC240, Designation of an Exempt Contribution– Tax-Free Savings Account (TFSA)
• RC243, Tax-Free Savings Account (TFSA) Return
• RC243-SCH-A, Schedule A– Excess TFSA Amounts
• RC243-SCH-B, Schedule B– Non-Resident Contributions to aTax-Free Savings Account (TFSA)
• RC343, Worksheet – TFSA contribution room
• T400A, Objection – Income Tax Act
• T1261,Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents

Information circulars and Income Tax Folios

• IC18-1 Tax-Free Savings Accounts
• IC89-3, Policy Statement on Business Equity Valuations
• S1-F5-C1, Related persons and dealing at arm's length
• S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs
• S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs
• S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, and TFSAs
• S5-F1-C1, Determining an Individual's Residence Status

Pamphlet

• P148, Resolving your Dispute: Objection and appeal rights under the Income Tax Act

If you need help

If you need more information after reading this guide, go toTaxes or call 1-800-959-8281.

Direct deposit

Direct deposit is a fast, convenient, and secure way to get your CRA payments directly into your account at a financial institution in Canada. For more information and ways to enrol, go toDirect deposit – Canada Revenue Agency or contact your financial institution.

Forms and publications

If you need a paper version of the CRA's forms and publications, go to Forms and publications or call one of the following numbers:

• 1-800-959-8281,from Canada and the United States
• 613-940-8495, from outside Canada and the United States. The CRA only accepts collect calls made through telephone operators. After your call is accepted by an automated response, you may hear a beep and notice a normal connection delay.

Electronic mailing lists

The CRA can notify you by email when new information on a subject of interest to you is available on the website. To subscribe to the electronic mailing lists, go to Canada Revenue Agency electronic mailing lists.

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA's automated service, TIPS, by calling 1-800-267-6999.

Teletypewriter (TTY) users

If you have a hearing or speech impairment and use a TTY, call 1-800-665-0354.

If you use an operator-assisted relay service, call the CRA's regular telephone numbers instead of the TTY number.

CRA Service Feedback Program

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the CRA. For more information go toTaxpayer Bill of Rights.

If you are not satisfied with the service you received:

1. Try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the correspondence you received from the CRA. If you do not have contact information for the CRA, go toContact the Canada Revenue Agency.
2. If you have not been able to resolve your service-related issue, you can ask to discuss the matter with the employee's supervisor.
3. If the problem is still not resolved, you can file a service-related complaint by filling out FormRC193, Service Feedback. For more information and how to file a complaint, go to Submit a service feedback.

If you are not satisfied with how the CRA has handled your service-related complaint, you can submit a complaint to the Office of the Taxpayers' Ombusperson.

Formal disputes (objections and appeals)

If you disagree with an assessment, determination, or decision, you have the right to file a formal dispute.

For more information about objections or formal disputes, and related deadlines, go to Service feedback, objections, appeals, disputes, and relief measures.

Reprisal complaints

If you have previously submitted a service complaint or requested a formal review of a CRA decision and feel you were not treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint.

For more information about complaints and disputes, go to Service feedback, objections, appeals, disputes, and relief measures.

Due dates

When a due date falls on a Saturday, Sunday, or a public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day.

For more information, go to Duedatesand payment dates.

Cancel or waivepenalties or interest

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA discretion to cancel penalties or interest when taxpayers cannot meet their tax obligations due to circ*mstances beyond their control.

The CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later.

You or your authorized representative can make a request to cancel penalties or interest online using the CRA My Account, My Business Account or Represent a Client services by selecting “Request relief of penalties and interest” under “Related services.” Alternatively, you can also fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, and send it online using My Account, My Business Account or Represent a Client by selecting the “Submit documents” service; or by mail to the designated office, as shown on the last page of the form, based on your place of residence.

For more information about how to submit documents online, go to Submit documents online. For more information about relief from penalties or interest and the related forms and publications, go to Cancel or waive penalties or interest.

Date modified:

2023-01-06