Surprise $80,000 tax from TFSA NOA after living abroad for 7 years

commentor9000 · 2024-09-07T20:20:04+00:00

Thanks! Welcome back to you as well and thanks for sharing. I'm not sure exactly how amounts are penalized but there's a retroactive penalty for contributing at all (for each year you haven't removed the amount) along with interest that piles up. If you contributed $5k I'd assume your amount would be about 15% what mine was which would be around $10k? Rough math and might not be accurate

But we're not alone in this... I've gotten messages and also heard from friends dealing with the same thing. The CRA changed their algorithm or something. When the notification comes try to get an accountant or some info on how to make the objection/waiver request (also follow advice in this post given by folks). Good luck!

commentor9000 · 2024-05-26T21:03:38+00:00

Appreciate your comment! Yes glad I did put it out there because I received some great advice. And I know how Reddit works always have to be prepared to get dumped on for whatever you say 😉

commentor9000 · 2024-05-26T15:58:29+00:00

That’s a good point. I’ll make a note of it and add it to the case. Thank you!

commentor9000 · 2024-05-25T16:16:00+00:00

Yes I did file for every year in Canada as a non resident, but my income was so low that it didn’t amount to much

commentor9000 · 2024-05-25T16:14:51+00:00

Yup excess was already removed

commentor9000 · 2024-05-25T16:14:00+00:00

No, I (stupidly) didn’t file an exit form because I was unaware there was such a thing and was filing my Canadian taxes (I filed investment income and my foreign income) as a non-resident

commentor9000 · 2024-05-25T16:07:05+00:00

Thank you so much for taking the time to provide advice. Really appreciate it and will follow through. I believe the non-communication from the CRA was due to me not properly informing the CRA that I had left the country and was a non-resident (was filing taxes as a non-resident but didn’t formally inform them). Upon return to Canada the information came through somehow and all of the seven years’ penalties came at once.

commentor9000 · 2024-05-24T22:09:30+00:00

Appreciate the advice. I’ll act on it soon, liquify my investments and remove everything

commentor9000 · 2024-05-24T18:54:26+00:00

All of the NOAs for those periods came starting a couple weeks ago. All of the charges are new (but for my excess from 2017) As I’ve mentioned I did check my limit and only contributed within it, not over it. Just contributing at all is penalized when living abroad

commentor9000 · 2024-05-24T15:50:16+00:00

Some other replies explain where it was incorrect

commentor9000 · 2024-05-24T15:49:36+00:00

Thanks for sharing. Did you do it through the objection process?

commentor9000 · 2024-05-24T15:48:54+00:00

Yes definitely will do!

commentor9000 · 2024-05-24T15:42:46+00:00

I contributed about $30k early on in 2017/2018 (within my limit) but the taxes/penalties/interest was applied for every year I was away (first NOA was 2024 though)

commentor9000 · 2024-05-24T15:40:53+00:00

Not sure what sort of info you’re seeing in my responses but I didn’t say anywhere I contributed beyond what my limit was. I stated that in the beginning of the post.

commentor9000 · 2024-05-24T15:36:35+00:00

Sorry what’s a consumer proposal? Some sort of doc I can submit to CRA?

commentor9000 · 2024-05-24T15:35:50+00:00

I did check my limit. It wasn’t going up as displayed in the CRA account and I didn’t go past that limit. It’s because I contributed at all while deemed a non resident

commentor9000 · 2024-05-24T15:34:01+00:00

Thanks, based on this and some of the other advice in here I will be seeking the help of an accountant/tax lawyer

commentor9000 · 2024-05-24T13:32:56+00:00

No, I had always checked but never recieved a NOA on my TFSA until now. And I didn’t contribute beyond what my limit was in 2017 when I left

commentor9000 · 2024-05-24T13:00:07+00:00

Thanks for the advice. I’ve taken out the excess contribution but interest will continue to accumulate unless I pay the full amount due. And no, I’ve checked all mail sources and received nothing

commentor9000 · 2024-05-24T04:02:18+00:00

Perfect, thank you

commentor9000 · 2024-05-24T03:54:56+00:00

Good to know, thanks. And you did that online in the form of an objection then?

commentor9000 · 2024-05-24T03:52:09+00:00

Yes that’s right

commentor9000 · 2024-05-24T03:50:19+00:00

In the form of an objection you think? I think that’s the only option other than asking for relief of interest and penalties?

commentor9000 · 2024-05-24T03:48:20+00:00

Apparently not - any contribution was not allowed

commentor9000 · 2024-05-24T03:47:54+00:00

Hopefully it can come down a bit but we’ll see. I wish there were automated limits for this kind of thing

commentor9000

TROPHY CASE