CRA TFSA Audit 2025 — Defend Your Investments, Stop Over-Contribution Penalties, and Protect Your Savings

In 2025, CRA’s TFSA (Tax-Free Savings Account) Audit Program is aggressively reviewing Canadian investors for over-contributions, frequent trading, and suspected business activity inside TFSAs. CRA’s digital audit algorithms now track account activity across all financial institutions, automatically flagging anyone with multiple deposits, high trading frequency, or large gains. Even honest savers and retirees are facing unexpected reassessments, retroactive taxes, and 1% monthly over-contribution penalties. At Mackisen CPA Auditors Montreal, we defend investors, retirees, and business owners against CRA TFSA audits and reclassifications. Our CPA auditors and tax lawyers prepare a complete defense to prove compliance, remove penalties, and restore your tax-free status. We don’t let CRA turn your savings strategy into a tax nightmare — we protect your right to grow tax-free.

Legal and Regulatory Framework

Income Tax Act (Canada)

• Section 207.02: Imposes a 1% monthly tax on TFSA over-contributions until withdrawn or corrected.

• Section 207.05: Applies additional penalties for non-resident or ineligible contributions.

• Section 146.2(6): Defines qualified investments and prohibited transactions within a TFSA.

• Section 220(3.1): Allows CRA to cancel or reduce penalties and interest through the Taxpayer Relief Program.
  CRA TFSA Policy Guidance
  CRA may audit TFSAs suspected of carrying on a business, especially those engaged in active day trading or lending transactions. Mackisen ensures your investment activity is properly documented as personal, not commercial.

Key Court Decisions

Bédard v. The Queen (2022): CRA must prove intent to run a business before taxing TFSA activity.
Thibault v. The Queen (2022): Proper recordkeeping and separation of personal and business funds protect TFSA status.
Guindon v. Canada (2015): Penalties cannot apply when the taxpayer acted in good faith and followed professional advice.
Dorsman v. The Queen (2021): CRA must demonstrate that trading activity exceeded reasonable personal investing.
These precedents confirm that CRA cannot arbitrarily penalize or reclassify TFSAs without clear proof of commercial intent or negligence.

Why CRA Targets TFSA Holders

CRA audits TFSA holders to recover tax revenue from excessive contributions and high-yield strategies. Common 2025 triggers include:

• Exceeding the annual or cumulative TFSA limit.

• Day trading or frequent stock transactions.

• Using borrowed funds or margin inside a TFSA.

• Holding prohibited or private company investments.

• Making contributions while a non-resident of Canada.
  CRA assumes profit motive — Mackisen proves personal investing.

Mackisen’s TFSA Audit Defense Strategy

1. Audit File Review: Examine CRA’s reassessment notice and determine whether the issue is contribution or activity-related.

2. Evidence Compilation: Gather transaction records, contribution confirmations, and professional advice documentation.

3. Intent Analysis: Prove that the TFSA was used for personal investment, not business activity.

4. Legal Representation: File a Notice of Objection and negotiate directly with CRA Appeals to reverse penalties.

5. Penalty & Interest Relief: Apply under Section 220(3.1) to eliminate over-contribution taxes and late fees.
   Our defense restores your TFSA’s integrity and preserves your right to tax-free growth.

Real Client Experience

A Montreal investor was reassessed $68,000 for “day trading in a TFSA.” Mackisen demonstrated personal investment intent and secured full reversal of the CRA assessment.
A Quebec retiree was fined for over-contributing $22,000 across two institutions. Mackisen filed a taxpayer relief request and CRA refunded all penalties and interest.

Common Questions

Can CRA audit my TFSA? Yes — CRA audits all accounts flagged for frequent trading, high returns, or over-contributions. Mackisen ensures your activities remain compliant.
What happens if I over-contributed? Mackisen can file for immediate withdrawal and relief to cancel the 1% monthly tax.
Can CRA tax my TFSA profits? Only if proven to be business income — Mackisen builds a legal defense to prevent that classification.
Can I appeal a CRA TFSA reassessment? Absolutely. Mackisen files formal objections and taxpayer relief applications to overturn CRA decisions.

Why Mackisen

At Mackisen CPA Auditors Montreal, we are Canada’s leading defenders of investor rights and CRA audit relief. Our deep understanding of CRA audit policy, tax law, and financial compliance allows us to protect your TFSA from overreach and penalties. We act fast, argue effectively, and win consistently — because your retirement savings should grow, not shrink under audit pressure. When CRA audits your TFSA, Mackisen audits their reasoning.
Call Mackisen CPA Auditors Montreal today for your 2025 TFSA Audit Defense Consultation. The first meeting is free, and your protection starts immediately