OTTAWA A tricky rule keeps tripping up thousands of Canadians who make withdrawals from their tax free savings accounts, and replace the money too early.
Some 54,700 taxpayers got warning packages from the Canada aOlernKienOP air jordan spizike gym red Notre Dame advances with strong finish Revenue Agency earlier this year about the problem affecting the 2013 taxation year, and were told they face a penalty.
The number has air jordan 6 black infrared 2014 black black infrared been dropping steadily from a peak of 103,000 Air Jordan CDP in 2010, but still represents a persistent misunderstanding of TFSA rules even as the agency air jordan fusion 4 and financial institutions step up education aOlernKienOP air jordan 7 french blue white french blue flint grey Microsoft launches Xb measures.
The regulations say that account holders can put back the amounts they withdraw from a TFSA air jordan 1 retro dmp bulls celtics only in a later aOlernKienOP air jordan 9 retro barons white black neutral grey Sheraton offers free nig calendar year. Doing so in the same air jordan fusion 4 black varsity red stealth calendar year exposes them to a tax hit for overcontributions, even though they only replacing the withdrawn funds.
By the end of 2013, some 10.7 million Canadians had opened a TFSA, a savings vehicle introduced by the Conservative government in 2009 that allows money to grow inside tax free with no income tax hit on withdrawal.
The popular savings tool cost the federal treasury some $410 million in air jordan 9 retro white french blue grey forgone taxes in 2013, or air jordan 1 retro 2001 white white midnight navy more than a billion dollars over its first five years.
Some taxpayers are apparently slow to absorb the finicky withdrawal rule: this year 11,260 of aOlernKienOP air jordan 13 retro white grey red Fun Shoebox Crafts them got the same warning package from air jordan 5 v retro white patent dark army del sol the Canada Revenue Agency last year as well, figures provided by aOlernKienOP air jordan 11 xi retro cool greys October 2012 carapace CRA show.
As of the end of last month, the agency had waived penalties for more than 17,000 Canadians who aOlernKienOP air jordan 9 photo blue black Promote Chinese patriotism in face of Western broke the rule in 2012. The average penalty waived was $516, or a total of air jordan 1 retro white university blue almost $9 million.
And for the 2013 aOlernKienOP Jordan Pro Strong Team picks up 2 more prep recruits taxation year, more than 20,000 Canadians have already paid their penalties.
Taxpayers who received a TFSA warning package in the mail this summer were given 60 days to respond. Those who don respond get a notice of assessment, imposing a aOlernKienOP air jordan 1 ko high og chicago How to Play Indoor Soccer penalty.
A spokesman for the agency said the onus is on Canada banks and other financial institutions to make sure their customers know the aOlernKienOP air jordan 14 retro white black red Nike and Reebok settle NY fight over Te rules.
with any financial or investment product, financial institutions have a responsibility to inform their clients of the details and restrictions relating to TFSAs, said Philippe Brideau.
CRA continues to work very closely with the financial institutions to ensure that CRA information related to TFSA is well understood and known by the Canadian financial sector. noted that fewer air jordan 5 oreo 2013 than half a per cent of TFSA holders ran afoul of the rules in 2013.
The current maximum annual contribution to a tax free savings account is $5,500, though Prime Minister Stephen Harper has promised to double the maximum once the federal books are balanced, aOlernKienOP air jordan 11 legend blue white black legend blue Different Types Of Online expected next year in advance of the scheduled 2015 federal election.
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