Refund of taxes paid

The TFSA holder could be entitled to a refund of the one-time 50% tax paid on non-qualified investments or prohibited investments held in the TFSA before the end of the calendar year following the calendar year in which the liability for the tax arose, or a later time as permitted by the Minister, if either of the following happens:

However, no refund will be issued if it is reasonable to expect that the holder knew, or should have known, that the investment was or would become a non-qualified or a prohibited investment.

The refund applies to the 50% tax on non-qualified or prohibited investments but not to the 100% tax on advantages.


If the 50% tax on non-qualified or prohibited investments and the entitlement to the refund of that tax arose in the same calendar year, then a remittance of the tax is not required. For example, no remittance of tax would be required if a TFSA trust acquired and disposed of a non-qualified investment in the same calendar year.

Claiming a refund

To claim a refund, you must:

The documents must contain the following:

If the disposition took place in the same year as the acquisition, enter the refundable amount on the line in Section 2 of the TFSA return, and attach the documents to your return. If the property disposed of was acquired in a previous year, send a letter and the documents to:

Canada Revenue Agency
TFSA Processing Unit
Sudbury Tax Centre
Post Office Box 20000 Station A
Sudbury ON  P3A 5C1


Canada Revenue Agency
TFSA Processing Unit
Winnipeg Tax Centre
Post Office Box 14000 Station Main
Winnipeg MB  R3C 3M2

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