Millionaires Paying 0 Taxes Getting Hit Real Hard With New Audits in Canada

[Economy 52,837]

.http://www.moneysense.ca/save/investing/tfsa/taxman-after-your-tfsa-unlikely/

 

In 2009 Canada introduced an account called TFSA (Tax Free Savings Account). You start building contribution room each year after your 18th birthday. Right now your annual contribution limit increases by $5500 each year. The intention was to help average joes save for retirement or a downpayment on a home

 

It has come to the Government's attention that there are many accounts now with $1 Million or more in assets in these accounts

 

Day traders have been using it to day trade, make huge profits and never pay a cent in taxes

 

The Government is getting tougher now and auditing TFSAs. If you trade very frequently, hold very large balances or have any other circumstance suggesting you are a day trader you may get some heavy tax penalties

 

It is determined if you are to be taxed as a trader or running a business on a case by case basis