INTRODUCTION – TAX PENALTY AND INTEREST RELIEF FOR OVERCONTRIBUTIONS TO A TFSA As of 2009, Canadian tax residents over 18 years old have been entitled to establish a tax-free savings account (“TFSA”). Unlike a Registered Retirement Savings Plan (“RRSP”), you are not entitled to deduct your contributions to a TFSA against your income. In turn, the withdrawals made from a TFSA will be tax-free. Thus, a Canadian taxpayer does not pay tax on interest, dividends, capital gains or other income that accumulates within a TFSA. The TFSA is a powerful tax planning tool for families and individuals to begin saving for retirement or significant life purchases, like a family home.…