Contribution rules for a popular tax shelter continue to perplex ordinary Canadians, despite a year-long information blitz by the Canada Revenue Agency and the big banks.
The agency sent out almost 103,000 letters to holders of tax-free savings accounts this month warning they likely over-contributed in 2010 — and now must pay additional tax.
That number is up sharply from the 72,000 letters issued on June 1 last year for the same excess contribution problem in 2009.
The tax shelter “is still a relatively new program and, naturally, some misunderstandings might still exist regarding the rules and may have led to inadvertent over-contributions,” said spokesman Noel Carisse. Read More…