Accidentally contributed more than $5,000 to a TFSA? It may still be possible to avoid penalties for over-contributions. Paul Hickey, partner at KPMG’s national tax centre, (水城百事)

by For TFSA overcontribution penalty, Tuesday, June 15, 2010, 19:26

Accidentally contributed more than $5,000 to a TFSA? It may still be possible to avoid penalties for over-contributions. Paul Hickey, partner at KPMG’s national tax centre, suggested using CRA’s tax fairness provisions by submitting a Request For Taxpayer Relief form.

“Interestingly the TFSA provisions contain a special rule which allows the CRA to waive or cancel all or part of the penalty if you can establish “to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error,” and that the individual acts without delay to fix the problem,” Mr. Hickey said in an e-mail.