Federal Court judge slams ‘perpetual tax trap’ on TFSA overcontributions
If you accidentally overcontribute to your tax-free savings account (TFSA), you will face the dreaded overcontribution penalty tax, which is equal to one per cent per month for each month you’re accidentally over the limit. You can request that the Canada Revenue Agency waive or cancel the tax, which it has the power to do, if it can be established that the tax arose “as a consequence of a reasonable error” and the overcontribution is withdrawn from the TFSA “without delay.”
![Surrey, BC: OCTOBER 31, 2024 -- RCMP Federal Investigators announced the dismantling of a massive drug lab in Falkland, BC Friday, October 25, 2024 where they seized quantities of MDMA, cocaine, methamphetamine, and fentanyl, as well as dozens of guns seized in simultaneous raids in Surrey, BC. David Teboul, RCMP Assistant Commissioner Federal Policing Commander, Pacific Region, made the announcement at RCMP E Division HQ in Surrey Thursday. On display were quantities of seized drugs and cash as well as dozens of handguns, semi-automatic rifles and two high-powered bolt-action sniper rifles, including one that is .50-calibre. One person has been arrested and more are anticipated as the investigation continues. (Photo by Jason Payne/ PNG) (For story by Kim Bolan) [PNG Merlin Archive] Blackwell KG NP Fentanyl](https://smartcdn.gprod.postmedia.digital/winnipegsun/wp-content/uploads/2025/08/0801-falkland.jpg?quality=90&strip=all&w=232&sig=aM8qBJ9iS4RIJIjBbR-jTw)
