Income Tax Act

Marginal note:Tax payable on non-resident contributions

207.03 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.