Quote:
Originally Posted by Muta
It's not irrelevant; I clearly identified an easy way to circumvent PP's $5K TFSA proposition. The only way to track that Canadians have invested in Canadian companies, and keep them Canadian without circumventing the system, is to have dedicated Canadian-only TFSA accounts (as you said) with registered Canadian companies. Right now you can invest in literally any financial product within your TFSA or RRSP.
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IMO this is actually easily solvable, in the same way that they don't let you double up on contributions by withdrawing at some point during a year. Essentially, your contribution room isn't valid again until the following tax year.
If you sell the canadian stock during the same year where you were given 5k extra room, the next year the 5k extra room is removed and you're charged tax on any overage unless you're still holding that 5k of canadian stock.