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Income Tax Act

Version of section 207.03 from 2009-01-01 to 2009-03-11:


Marginal note:Tax payable on non-resident contributions

 If, at a particular time, a non-resident individual makes a contribution under a TFSA, the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of

  • (a) the first time after the particular time at which the amount of the contribution is equalled or exceeded by the total of all amounts each of which is a distribution

    • (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

  • (b) the time at which the individual becomes resident in Canada.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2008, c. 28, s. 31

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