Penalties and interest

Various penalties may be applied on a TFSA annual information return.

A TFSA annual information return consists of TFSA individual records and the related TFSA return summary. A summary alone is not a TFSA annual information return. You have to fill out a TFSA annual information return if you prepare one or more TFSA individual records.

We will issue a notice of assessment for the TFSA annual information return only if we apply a penalty.

On this page

• Late-filing penalty and failure to file the TFSA annual information return
• Failure to provide information on a return
• Cancel or waive penalties or interest

Late filing penalty and failure to file the TFSA annual information return

The minimum penalty for late filing the TFSA annual information return is $100 and the maximum penalty is $7,500. For the complete penalty structure, go to Penalty for failure to file information returns over the internet.

Failure to provide information on a return

Anyone who prepares a TFSA annual information return has to make a reasonable effort to get the necessary information, including the SIN or TTN and date of birth of the individual. If you fail to comply with this requirement, you may have to pay a $100 penalty for each offence.

Make sure that the SIN or TTN you enter on each TFSA individual record matches the TFSA holder’s SIN or valid TTN. You must also make sure that the name and date of birth match the information in our records.

If you have to prepare a TFSA annual information return, or if you are an officer, employee, or agent of a person who does, you cannot use or communicate an individual’s SIN or TTN, or allow it to be communicated, other than as required or authorized by law, or for the purpose for which it was provided.

If you use an individual's SIN/TTN for unauthorized purposes, you may be guilty of an offence and liable, if convicted, to a maximum fine of $5,000 or imprisonment of up to 12 months, or both.

Cancel or waive penalties or interest

We charge interest, compounded daily at a prescribed rate, on the total amount of penalties and interest outstanding. Interest and penalties are payable to the Receiver General of Canada.

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA discretion to cancel or waive penalties or interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA's discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2022 must relate to a penalty for a tax year or fiscal period ending in 2012 or later.

You or your authorized representative can make a request to cancel penalties or interest online using the CRA My Account, My Business Account or Represent a Client services by selecting "Request relief of penalties and interest" under "Related services." Alternatively, you can fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, and send it online using My Account, My Business Account or Represent a Client by selecting the "Submit documents" service; or by mail to the designated office, as shown on the last page of the form, based on your place of residence.

For more information about how to submit documents online, go to Submit documents online. For more information about relief from penalties or interest and the related forms and publications, go to Cancel or waive penalties or interest.

Forms and publications

• Information Circular, IC07-1, Taxpayer Relief Provisions
• Information Circular, IC82-2R2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips