Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

TFSA and Swap Transactions
Canadian Tax and
Financial Information Home

What's New

Links & Resources

Site Map

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!
What's New
Personal Tax
Sales Taxes
Financial Freedom
Financial Planning
Registered Accounts
Real Estate
US Tax Tips
British Columbia
Atlantic Provinces
Federal Budget
Prov/Terr Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources
RRSPs RRIFs and TFSAs  ->  Tax-free savings accounts (TFSAs) -> Asset transfer transactions

TFSA Asset Transfer (Swap) Transactions

Income Tax Act s. 146.2(1), s. 207.01

Asset transfer transactions, also known as swap transactions, are transactions where property is transferred out of an account, and cash or other property is transferred into the account.  These transfers, for instance between a TFSA and another registered account such as an RRSP, are not treated as a withdrawal and recontribution, but as a purchase and sale.

Amendments to the Income Tax Act which became law (Bill C-47) in December 2010 prohibit asset transfer transactions between registered or non-registered accounts and TFSAs.  The prohibition would apply to transfers between accounts of the same taxpayer or that of the taxpayer and an individual with whom the taxpayer does not deal at arm's length.

The amendments apply tax at a rate of 100% of the amount of the asset transfer transaction, for transactions occurring after October 16, 2009.

Where the asset transfer transaction has occurred inadvertently after October 16, 2009, the Minister of National Revenue may waive or cancel all or part of the tax payable, if the taxpayer promptly rectifies the situation by restoring each account to its position before the asset transfer occurred.

Note:  These rules do not apply to in kind contributions or withdrawals of property to or from a TFSA.  An in kind contribution or withdrawal is different from a swap transaction, because nothing is being transferred (swapped) out of or into the TFSA in return for the contribution or withdrawal.

Tax Tip:  Swapping investments between a TFSA and other accounts can be costly.


What is Better - TFSA or RRSP?

TFSA Contribution Rules and Limits / Leaving Canada

Don't Overcontribute!

Unused Contribution Room

TFSA Investments - qualified, non-qualified, and prohibited

TFSA Withdrawals


Taxes Payable re TFSA

Marital Breakdown

Death of the TFSA Holder

Back to TFSA main page.

Revised: October 26, 2023



Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  See What’s New, stay connected with by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.