Income Tax Act

Marginal note:Waiver of tax payable

• 207.06 (1) If an individual would otherwise be liable to pay a tax under this Part because of section 207.02 or 207.03, the Minister may waive or cancel all or part of the liability if

  • (a) the individual establishes to the satisfaction of the Minister that the liability arose as a consequence of a reasonable error; and

  • (b) one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the total of

    • (i) the amount in respect of which the individual would otherwise be liable to pay the tax, and

    • (ii) income (including a capital gain) that is reasonably attributable, directly or indirectly, to the amount described in subparagraph (i).

• Marginal note:Waiver of tax payable

  (2) If a person would otherwise be liable to pay a tax under this Part because of subsection 207.04(1) or section 207.05, the Minister may waive or cancel all or part of the liability where the Minister considers it just and equitable to do so having regard to all the circumstances, including

  • (a) whether the tax arose as a consequence of reasonable error; and

  • (b) the extent to which the transaction that gave rise to the tax also gave rise to another tax under this Part.

• Marginal note:Waiver of tax payable — advantage

  (3) The Minister shall not waive or cancel a liability imposed under subsection 207.05(3) on an individual unless one or more distributions are made without delay under a TFSA of which the individual is the holder, the total amount of which is not less than the amount of the liability waived or cancelled.

• Marginal note:Other powers of Minister

  (4) The Minister may notify the holder of a TFSA that the holder must cause a distribution to be made under the TFSA within 90 days of receipt of the notice, the amount of which is not less than the amount of the specified non-qualified investment income.