The CRA is Targeting Canadian TFSA Investments

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DISCLAIMER: This video is intended to be used for entertainment purposes only, and is not to be interpreted as advice, financial, investing, legal or otherwise. Any decision or action made by any viewer of this video is entirely at the discretion of that individual. Russell Matthews does not warrant or represent that any information is accurate. This description contains affiliate links, and if you purchase an item, a portion of the sale will go towards supporting the channel, at no additional cost to you.

[christopherlenahan]

They'll look back in time on TFSA, but won't pursue the 10's of billion in business CERB fraud.

[cszulu]

There is definitely something wrong because I was audited for a 10k medical expense (legitimate) and passed with flying colours, but they still came after me for the that small amount which they ended up giving me more money back as I found more medical bills I had not found. To hear that they are not going after 15 billion means someone in office politically benefited from it. It makes no sense.

[linusvfj]

From what I can tell, the CRA bullying 1 guy to pay taxes is easier, than it is for the CRA to challenge another corporation with its own lawyers and administration that can fight against them. I think that's why the CRA is saying corporate collection is too hard, and instead opting to bully individuals instead

[spelunkerd]

If he had lost all that money, I wonder how CRA would have responded if he wanted to claim that as a loss. Of course they wouldn't accept it. It seems they are trying to have their cake and eat it too. In my experience, this is typical of CRA behavior.

[siyar]

Why CRA does not make it clear that the number of trades are allowed in TFSA account yearly to remain tax-free. It's all BS to call it TFSA, and once they see one made some profits, they want a peace of it.

[luisfigueroa]

After watching the video, I am still wondering what is the CRA basing its decision on. This is a TAX-FREE account. How can the CRA show its face 5 years later and say, hey you made a lot of income, I want my cut? This is unbelievable, it should be easy to proof wrongdoing from the CRA in tax court.

[big_red_machine]

What pricks. The individual takes all the risk and should be able to keep it. The CRA just steals from anyone who’s trying to get ahead in life

[jamesverday]

Why is CRA not going after big business and is instead targeting individual investors? The answer is quite simple. Corruption.

[ForceFedFetusFillet]

The government is not there to help the people.

[bradstoybox]

The whole point of investing is to make money. This person, used their skills to maximize their investments and now they are getting screwed by the CRA. There are no guidelines to tell you how often you can trade or how long you must hold an investment. This is a vicious trap set by the CRA to cherry pick victims.

[kevinmcboyle]

from the aritcle it implied the guy only made one trade, but the CRA still deemed it day trading. notice how it said their 15k grew to 615k, then when the it dropped in value, they decided to sell (1 transaction). The cra saw that 615k and investigated his account and deemed it as day trading. The amount the value grew is what caused the red flag and not the frequency. Also they make it vague as possible because then they can say the account is "day trading" whenever they want.

[RenosVids]

TFSA should simply be tax free. Why should the government question my style of investing!

[GulfTooWon]

TFSA: you don't pay taxes on the earnings of your investments, just don't be too active in managing your investments because then we might call it a business and take your money. This is the dumbest thing I have ever heard although it isn't too far off from the policy on crypto.

[krissyschmidt]

The CRA’s priorities seem more geared towards individuals. I worked full time, bought a home for the first time and was paying tuition so they audited me. That was in 2016, I have been audited every year since ( even though there were no issues in 2016).

[carbonunit]

In short it always works in favour of the CRA. If it doesn’t then they change the rules so it works in favour of the CRA.

[cpwong]

CRA will tax you because you have many daily transactions in the stock market; this is wrong!
To be fair, CRA will not tax you no matter how much money you made from the TFSA accounts, if you follow the rules of the TFSA.
People easily made mistakes in contributing to their TFSA accounts!
For TFSA the contribution room of each year is very important! If you contribute more than you are allowed, the excess contribution will be taxed by 1% per month which is more than 12% per year because it’s a compounded interest! Usually the one who made the mistake will not find out until the following year when she files the tax return. One important issue is when you withdraw some money from your TFSA account to a normal account on a certain year you should not put that money back to the TFSA account of that year because CRA will consider that amount is an excess contribution, again it will be taxed by 1% per month!
I hope this article is helpful to Canadian tax payers!

[TwinworldGameReviews]

I wonder how long 'briefly' is. If the investor was buying mainly penny stocks and holding those stocks over the years, it's not a business if a stock jumps in price and the investor cashes out. If the investor determined that a stock's price became overvalued and they sold it because of this, that is different from day trading or swing trading within the account. There appears to be some information missing from this case. An example could be with Gamestop or AMC. If someone bought Gamestop at $5 and sold it at $200 because it's now overvalued, that doesn't mean you should be taxed on that lucky gain.

[Bullish]

I can only imagine how much more difficult they are going to make it for the average investor to get ahead in the future, given the current trajectory of Canada's economy.

[ddnsolution]

So I was in the heat of trading at the time when the TFSA account got introduced back in 2009. At that time, CRA has not made it clear what kind of trading activities were permitted within the TFTA (Tax free trading account) only that Canadian securities can be held within these accounts. It's very ambiguous to deem what is considered speculative trading and what is investing trading. If I buy CIBC stocks one day and in 2-3 weeks they announce a deal and it rockets 30% in a day, why would I not cash in? This is very subjective as to what is considered active business trading and what is actively managing your investments. This person should be contacting a lawyer or accountant to deal with CRA.

[twilatharp]

Thanks, Russ. This government is disgusting.