What is the tax penalty if an investment in the TFSA becomes non-qualified?

If property that is considered a ‘non-qualified investment’ is acquired or held in a TFSA, a tax of 50% of the fair market value of the property will be assessed by the CRA. Credential Direct will report the fair market value totals to the CRA and the affected client would file a corresponding TFSA return to pay the appropriate tax amount.

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