- (i) that is made after the particular time under a TFSA of which the individual is the holder, and
- (ii) that the individual designates in prescribed manner to be a distribution in connection with the contribution and not in connection with any other contribution, and
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2009, c. 2, s. 69
Marginal note: Tax payable on prohibited or non-qualified investment
- 207.04 (1) The controlling individual of a registered plan that governs a trust shall pay a tax under this Part for a calendar year if, at any time in the year, the trust acquires property that is a prohibited investment, or a non-qualified investment, for the trust.
- Marginal note: Amount of tax payable (2) The amount of tax payable in respect of each property described in subsection (1) is 50% of the fair market value of the property at the time referred to in that subsection.
- Marginal note: Both prohibited and non-qualified investment (3) For the purposes of this section and subsections 146(10.1), 146.1(5), 146.2(6), 146.3(9), 146.4(5) and 207.01(6), if a trust governed by a registered plan holds property at any time that is, for the trust, both a prohibited investment and a non-qualified investment, the property is deemed at that time not to be a non-qualified investment, but remains a prohibited investment, for the trust.
- Marginal note: Refund of tax on disposition of investment (4) If in a calendar year a trust governed by a registered plan disposes of a property in respect of which a tax is imposed under subsection (1) on the controlling individual of the registered plan, the controlling individual is entitled to a refund for the year of an amount equal to
- (a) except where paragraph (b) applies, the amount of the tax so imposed; or
- (b) nil,
- (i) if it is reasonable to consider that the controlling individual knew, or ought to have known, at the time the property was acquired by the trust, that it was, or would become, a property described in subsection (1), or
- (ii) if the property is not disposed of by the trust before the end of the calendar year following the calendar year in which the tax arose, or any later time that the Minister considers reasonable in the circumstances.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2009, c. 2, s. 70
- 2010, c. 25, s. 58
- 2011, c. 24, s. 65
- 2013, c. 40, s. 75
- 2017, c. 33, s. 69
Marginal note: Tax payable in respect of advantage
- 207.05 (1) A tax is payable under this Part for a calendar year if, in the year, an advantage in relation to a registered plan is extended to, or is received or receivable by, the controlling individual of the registered plan, a trust governed by the registered plan, or any other person who does not deal at arm’s length with the controlling individual.
- Marginal note: Amount of tax payable (2) The amount of tax payable in respect of an advantage described in subsection (1) is
- (a) in the case of a benefit, the fair market value of the benefit;
- (b) in the case of a loan or an indebtedness, the amount of the loan or indebtedness; and
- (c) in the case of a registered plan strip, the amount of the registered plan strip.
- (a) is paid to the individual, from a RRIF or RRSP of the individual, on or before the later of April 2, 2013 and the day that is 90 days after the end of the taxation year; and
- (b) is not paid by way of transfer to another RRIF or RRSP of the individual.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2010, c. 25, s. 59
- 2011, c. 24, s. 66
- 2013, c. 40, s. 76
- 2017, c. 33, s. 70
Marginal note: Waiver of tax payable
- 207.06 (1) If an individual would otherwise be liable to pay a tax under this Part because of section 207.02 or 207.03, the Minister may waive or cancel all or part of the liability if
- (a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and
- (b) one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the total of
- (i) the amount in respect of which the individual would otherwise be liable to pay the tax, and
- (ii) income (including a capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).
- (a) whether the tax arose as a consequence of reasonable error;
- (b) the extent to which the transaction or series of transactions that gave rise to the tax also gave rise to another tax under this Act; and
- (c) the extent to which payments have been made from the person’s registered plan.
- (a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and
- (b) one or more distributions are made without delay under a FHSA of which the individual is the holder, the total amount of which is not less than the total of
- (i) the amount in respect of which the individual would otherwise be liable to pay tax, and
- (ii) the income (including any capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2009, c. 2, s. 71
- 2010, c. 25, s. 60
- 2011, c. 24, s. 67
- 2013, c. 40, s. 77
- 2022, c. 19, s. 52
Marginal note: Income inclusion
207.061 A holder of a TFSA shall include in computing the holder’s income for a taxation year under Part I any portion of a distribution made in the year that is described in subparagraph (a)(ii) of the definition in subsection 207.01(1) or subparagraph 207.06(1)(b)(ii) or that is specified by the Minister as part of an agreement to waive or cancel a liability for tax under this Part.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2010, c. 25, s. 61
- 2013, c. 40, s. 78
Marginal note: Special limit on tax payable
207.062 If an individual is liable to pay an amount of tax under section 207.05 and under sections 207.02 or 207.03 in respect of the same contribution for the same calendar year, the tax payable under section 207.05 for the year shall be reduced by the amount of the tax payable under section 207.02 or 207.03, as the case may be, for the year.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2010, c. 25, s. 61
Marginal note: Return and payment of tax
- 207.07 (1) A person who is liable to pay tax under this Part for all or any part of a calendar year shall before July of the following calendar year
- (a) file with the Minister a return for the year under this subsection in prescribed form and containing prescribed information including
- (i) an estimate of the amount of tax payable under this Part by the person in respect of the year, and
- (ii) an estimate of the amount of the person’s allowable refund, if any, for the year; and
- (a) a payment by any of the holders, or any of the subscribers, on account of that tax liability shall to the extent of the payment discharge the joint liability; and
- (b) a return filed by one of the holders, or one of the subscribers, as required by this Part for the year is deemed to have been filed by each other holder, or each other subscriber, in respect of the joint liability to which the return relates.
- (a) may, on sending the notice of assessment for the year, refund without application any allowable refund of the person for the year, to the extent that it was not applied against the person’s tax payable under paragraph (1)(b); and
- (b) shall, with all due dispatch, make the refund referred to in paragraph (a) after sending the notice of assessment if an application for it has been made in writing by the person within three years after the sending of an original notice of assessment for the year.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 2008, c. 28, s. 31
- 2010, c. 25, s. 62
- 2013, c. 40, s. 79
- 2017, c. 33, s. 71
PART XI.1 Tax in Respect of Deferred Income Plans and Other Tax Exempt Persons
- 207.1 (1) [Repealed, 2011, c. 24, s. 68]
- Marginal note: Tax payable by trust under deferred profit sharing plan (2) Where, at the end of any month, a trust governed by a deferred profit sharing plan holds property that is neither a qualified investment (within the meaning assigned by section 204) nor a life insurance policy (referred to in paragraphs 198(6)(c) to 198(6)(e) or subsection 198(6.1)), the trust shall, in respect of that month, pay a tax under this Part equal to 1% of the fair market value of the property at the time it was acquired by the trust of all such property held by it at the end of the month, other than
- (a) property in respect of the acquisition of which the trust has paid or is liable to pay a tax under subsection 198(1); and
- (b) property acquired by the trust before August 25, 1972.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 207.1
- 1994, c. 8, s. 31
- 1999, c. 22, s. 73
- 2005, c. 30, s. 16
- 2007, c. 35, s. 58
- 2011, c. 24, s. 68
- 2017, c. 33, s. 72
- (a) file with the Minister a return for the year under this subsection in prescribed form and containing prescribed information including