Cancelling individual records
After filing your TFSA annual information return, you may need to fully remove an individual record. If so, you will have to submit a cancelled individual record for that contract number to remove the information for that year. When submitting a cancelled record, the XML file must show it is a report type code “C,” and must be identical to the most current record (original or amended).
Use report type code “C” for the following scenarios:
- You need to correct a contract or TFSA identification number previously submitted in error.
- A record was filed that we cannot accept as valid. A cancelled record should be filed to acknowledge that this contract is not a TFSA.
- The wrong year was established as the election year (there can only be one election year established for a particular contract). For example, a record was filed and accepted as the election year for 2025; however, the contract was actually opened in 2024.
- The election was established under the wrong social insurance number (SIN) or temporary tax number (TTN) and there is an accepted record(s) for years subsequent to the election year under the same SIN or TTN. For example, an original record was accepted, and the election was established in 2023 under the wrong SIN or TTN; subsequent year records for 2024 and 2025 have also been filed and accepted under the same number. In order to correct this situation, cancelled records would be required to be submitted for the 2024 and 2025 reporting years. Once accepted, an amended record for 2023 should be filed reporting the correct holder’s SIN or TTN.
- Once the 2023 amended record is accepted and the election is established under the correct SIN or TTN, new original records should be submitted for the 2024 and 2025 reporting years.
- After discussing with the TFSA Processing Unit, it was determined that a cancelled record is required.
A cancelled record applies to a particular reporting year. When we receive a cancelled record for a particular year, we will eliminate the contributions and withdrawals for that particular year and recalculate the contribution room and taxes for that year.
To cancel records for the same contract for more than one year, you have to submit the cancelled record for the last year first. Once we have accepted that cancelled individual record, submit the cancelled individual record for the next affected year. This process will help to avoid further rejections of records to financial institutions or referrals to the TFSA Processing Unit.
Never use report type code “C” when:
- an amended record can correct the mistake in the previous record
- you want to cancel previously submitted and valid records in order to refile them with other records that were not previously submitted. (the records that were not previously submitted should be sent in a separate file)
Use an amended record for any other data element you want to modify.
Change to a TFSA contract number
A TFSA contract consists of the combination of both the contract number and the TFSA ID number. If either number or both are changed, it represents a change to a holder’s contract. The issuer must report the old contract on the TFSA annual information return as a “TFSA account closed this year” with the “closing date” and report the new contract as a “new TFSA account this year for this holder.”
Example
If a qualifying arrangement set up for specimen plan A (TFSA ID 3456789) is transferred to specimen plan B (TFSA ID 1234567) as of June 30, 2025 (the closing date), all transactions that occurred on or before the date of the transfer must be reported under specimen plan A (TFSA ID 3456789). Select the “Y” indicator for the “TFSA account closed this year” and enter the “TFSA close date.” Any transactions that occur after the June 30, 2025, closing date must be reported under specimen plan B (TFSA ID 1234567) with the “Y” indicator selected for a “New TFSA account this year for this holder.”
A TFSA with a new TFSA ID number, a new contract number, or both is considered a new contract with a presumed opening date of January 1 of the year of the election[MC1] .
The original contract will have an accumulated FMV up to the year-end preceding the transfer. This accumulated FMV will be reflected in the year end FMV of the new contract.
If you have questions after reading this information, please contact the Registered Plans Directorate.