Posted by & filed under Personal Tax, Student life.

Description: A Tax Free Savings Account (TFSA) allows Canadians to save using a wide variety of investment vehicles. Young investors are finding out, however, that using their TFSAs for frequent trades may draw unwanted attention from the Canada Revenue Agency (CRA). RBC Direct Investing has advised its users “that TFSAs are registered accounts intended for investing and growing your savings over time.” Trading too frequently may prompt CRA to consider you as carrying out an investment business, making your investment gains subject to tax.

Date:  November 23, 2021

Source:  globalnews.ca

 Link: https://globalnews.ca/news/8392920/trading-tfsa-cra/

Discussion points:

1) Do you know any students on your campus using TFSAs for frequent trading?

2) Does your university community have an investment club?

3) Chapter one of Wiley’s Auditing: A Practical Approach, describes several types of audits or assurance engagements. Which one of these audits would the CRA likely be conducting if it was examining a citizen’s TFSA activity?

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