Canadians Continue to Break TFSA Rules -So Why not Help Them?

Last week it was widely reported by several media outlets that thousands of Canadians have once again broken the TFSA rules. More specifically, they have breached the over-contribution rules. Dean Beeby of the Canadian Press notes in this


that the Canada Revenue Agency (“CRA”) sent out 76,000 letters (down from the 103,000 letters last year) informing Canadians they have over-contributed to their TFSAs and are subject to penalties of 1% per month on the excess over-contribution (The CRA may waive a penalty if they consider there to be a genuine misunderstanding and the over-contribution is removed within a reasonable period of time).

Generally, I believe blame should start and stop with yourself. However, where thousands of people are making the same mistake, it is obvious the CRA and the institutions administering TFSAs are still not enunciating and communicating the rules clearly to Canadians, despite their good intentions in some cases.

In general, there are two ways over-contributions arise in a TFSA:

1. Individuals contribute an amount greater than their yearly contribution limit.

As described in this CRA

document on TFSA contributions

, your yearly TFSA contribution room is made up of the following:

  • your TFSA dollar limit ($5,000 per year plus indexation, if applicable);
  • any unused TFSA contribution room from the previous year; and
  • any withdrawals made from the TFSA in the previous year, excluding qualifying transfers or specified distributions.

2. Withdrawn TFSA contributions are “put back” in the wrong year

As described in this CRA


, TFSA withdrawals can only be returned to your TFSA in the year after you have made a TFSA withdrawal. This is because in the contribution room formula noted above, your contribution room increases for any withdrawals made only in the

previous year, not the current year


For example: if you withdrew $3,000 from your TFSA in February, 2012 and you put back any portion of that $3,000 (assuming you have no other contribution room) at anytime in 2012, you will have over contributed in 2012. The over-contribution results because the $3,000 withdrawal should not be added to your contribution room until 2013.

So, after several years of thousands of Canadians misunderstanding the withdrawal rules for TFSAs, why doesn’t the CRA request, or financial institutions on their own volition, take the simple step of requiring its representatives to ask the following two questions before a TFSA contribution is accepted?

1. Have you confirmed your yearly TFSA contribution room to your income tax assessment or with the CRA through your online account or any other means?

2. Does your contribution include an amount put back on account of funds withdrawn during the current calendar year? If so, do you understand the current year withdrawal does not increase your contribution room until next year and unless you have other contribution room, you will have an over-contribution subject to penalties?

I would suggest that if these two simple common sense questions were mandatory questions financial institutions asked its customers before they made TFSA contributions, the CRA would have no need for 76,000 letters next year and taxpayers would have no one to blame, but themselves.

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Dog Teeth Cleaning – Methods For Removing Tartar

Cleaning dog’s teeth is important for many reasons. The most obvious reason is to help the dog avoid the dreaded “doggie breath” so many suffer from. Another reason is to prevent the unsightly look of plaque build-up on the teeth. A happy smile with pearl white teeth is what every dog owner wants for their canine. However, there is another reason for cleaning dogs’ teeth which is far more important. Just like in humans, if plaque is allowed to build up on your dog’s teeth, there is a significant chance for infection of the gums. This infection can often lead to bleeding gums. The fact that the gums are bleeding signifies that there is a direct access there in the gums to the blood supply. Therefore, the bacteria associated with the plaque build-up can then have direct entry into the blood stream. The blood can then carry the bacteria to other parts of the body and actually infect various organs. The byproducts given off by the bacteria can be very harmful. Illness and even death in dogs have been attributed to such infections. With respect to cleaning dogs’ teeth, always remember it is far easier to keep the plaque from building up in the first place than it is to remove it once the deposit is heavy. Oftentimes, a vet will consider the plaque such a threat to the dog’s health that he or she will suggest scaling. Cleaning dog teeth in this way requires general anesthetic. Putting a dog under anesthetic can be dangerous. This is especially true in older dogs. Owners should understand that the death rate with adverse reactions to anesthetic is much higher in dogs than in humans. Questions about the risks of the procedure should always be asked before scaling is used to cleaning dog teeth. Again, it is far easier to keep dog teeth free from tartar than it is to remove it once the build up is great. There are products such as dog toothpaste and other cleaners which can be used. In fact, there are even “dog tooth brushes” which can be used with the gel or paste in order to keep the dog’s teeth clean. Although it may be difficult at first to get the dog used to the idea of cleaning his or her teeth, with some work and good dog psychology it is possible to have the dog relaxed and open to the act of brushing. If the plaque is not built up too heavily, brushing a dog’s teeth is only required 3 or 4 times a week. If the build-up on the teeth is heavy, daily or even twice daily brushing for several months may be required. Most of the gels and toothpastes available have a lingering effect which continues to work beyond the actual brushing. The products tend to help dissolve the plaque simply by being in contact with it. Therefore, it is important not to allow the dog to eat or drink anything for an hour or so after the teeth brushing. At night, just before bedtime is an excellent time to clean dogs’ teeth. Cleaning your dog’s teeth is important part of maintaining his or her good health. It’s important not to overlook that aspect of canine hygiene. Steve Weber has more articles about canine health and cleaning dog teeth at his website. Article Source:

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Dog Insurance – Plan A Healthy Life for Your Dog

Nowadays, almost everybody is taking some or the other dog insurance policy, so that they can gift a healthy life to their precious pet. Such services not only preserve a good amount of monetary assistance for your dog but also ensure an instant source of help whenever required. Most of the insurance providers are associated with numerous veterinarian and medical centers, so that the pet owners can directly approach them at times of urgency. Various pet insurance policies are now available in the finance market for providing economic assistance to the pet owners. However, there are few mandatory steps that must be considered before finalizing any dog insurance deal. First of all check for all the services and facilities that your insurance policy covers. Like any other human being, even dogs need the regular medical check ups. Hence, make sure that your preferred insurance program does have substantial monetary scope to bear the expenses of these important check ups. Moreover, dogs easily catch infections and other seasonal problems. In fact, contagious health problems are severely prominent with dogs. And for this clause also, most of the insurance companies have made special financial arrangements. Other than all these expenditures, the policy must also cover for some very common problems such as medical bills, foreign body ingestion, bone fractures, accidents, allergic reactions and first time sickness. These insurance policies also pay for advertising expenses, if your dog gets lost or missing. Hence, do not wait any more and immediately settle for a good dog insurance policy. On the other hand, even the insurance companies follow some important specifications before offering the various services of the insurance policy. First of all they check the health condition and the age of the dog. Most of the insurance providers are interested in young dogs, as they have less chances of sickness. However, with an adult dog, it gets tougher to obtain a beneficial insurance program as they are more likely to catch infections and diseases. In addition to this, your pet is also required to go through a medical check up, so that if your dog is suffering from any fatal disease, it can be easily detected. Therefore, it would not be incorrect to state that insurance package for an old dog is somehow an expensive deal. Hence, if you have recently bought a dog then this could be the most apt time to buy a decent dog insurance program. You can easily inquire about the various insurance companies that are offering dog insurance through the medium of Internet. All leading insurance providers are available on the web with their websites that display each and every detail about the insurance policy. Any interested pet owner can also directly apply for their services through the online procedure. However, make sure that you read all the clauses and objectives carefully so that you can insure an appropriate insurance deal for your most valued pet. So, if you have a dog and wish for his long life then immediately select an insurance policy. Robert Scott is a veterinary doctor and through ages having been dealing in pet insurance. If you want to know more about Pet insurance, Pet insurance Online, Dog insurance, Cat insurance, Veterinary pet insurance. you can visit Article Source:

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