Tax free savings account - social insurance starting w/ 9

[Guillermo]

i'm in canada on a Temporary Resident Permit and have had a tax free savings account in the past. however, i just tried to open another one with RBC and they are telling me I can't open one because my social insurance number begins with a 9. (it's weird that they let me open one before.) They looked up the CRA website for me, and there it only says you need to be a resident with a valid SI number - both of which I am.

Can anyone tell me where to get more information on this?

Thanks!

[Xtrema]

http://www.cra-arc.gc.ca/tx/nnrsdnts.../nnrs-eng.html

If you fit their resident criteria, you should be able to buy TFSA.

But I can see banks deny all "9" to save themselves from issues later on.

[Dilmah]

So if and when to become a Canadian citizen do you get a new SIN beginning with a different number?

[Xtrema]

Originally posted by Dilmah
So if and when to become a Canadian citizen do you get a new SIN beginning with a different number?

Yes you do.

[Guillermo]

well it's stupid, because I once had a TFSA at RBC, and took all the money out and now they said I have to start a new one, so they started it but called me the next day and said they couuldn't do it. so basically i have 10k sitting in there making no interest, and they are making all the interest on it. i hate those fuckers.

[Guillermo]

oh, and i might be needing the money within the next few months, which is why i'm not looking for a long-term investment. what other short-term options do I have? i might call them back and try and argue it with them, and then move the money to another bank if they are unwilling to give me a TFSA.

[Sailz]

A SIN number beginning with a 9 is a temporary SIN that is why you cannot get a TFSA your SIN number has an expiration date on it. It is not a permanent valid SIN as you have not fully applied for PR (Permanent Resident) or Canadian Citizen.

[ReasonOne]

They do this because a lot of recent immigrants return to their country of origin before becoming a permanent resident (that's usually when you get your new SIN assigned to you). The immigrant who leaves can have the taxes they deferred in a TFSA "clawed back"... so to speak... by CRA.

So in short. If you're not a permanent resident and you DO manage to open a TFSA and you leave Canada for good the feds will want their cut. And how easy would it be for the feds to recoup their taxes when you've left the country? That's why the banks do it this way.

You usually have to be a Canadian citizen or permanent resident at the age of majority or greater.

[codetrap]

Originally posted by ReasonOne
They do this because a lot of recent immigrants return to their country of origin before becoming a permanent resident (that's usually when you get your new SIN assigned to you). The immigrant who leaves can have the taxes they deferred in a TFSA "clawed back"... so to speak... by CRA.

So in short. If you're not a permanent resident and you DO manage to open a TFSA and you leave Canada for good the feds will want their cut. And how easy would it be for the feds to recoup their taxes when you've left the country? That's why the banks do it this way.

You usually have to be a Canadian citizen or permanent resident at the age of majority or greater.

Really? This makes no sense at all since there's no tax implications tied to a TSFA, and in reality, it's mouse nuts to the CRA. IF it was taxable, assuming a 7% pure interest, a 40% marginal rate, you're talking about a tax liability of $420. I think you're either wrong, or making shit up.

[ReasonOne]

Originally posted by codetrap


Really? This makes no sense at all since there's no tax implications tied to a TSFA, and in reality, it's mouse nuts to the CRA. IF it was taxable, assuming a 7% pure interest, a 40% marginal rate, you're talking about a tax liability of $420. I think you're either wrong, or making shit up.

http://www.cra-arc.gc.ca/tx/ndvdls/t...tcntn-eng.html

examples that clarify the tax rate:

http://www.cra-arc.gc.ca/tx/ndvdls/t...eng.html#xmpl1

It's not much, but a penny in the bank is a penny in the bank to the CRA.....and if it's owed to them they'll find a way to get it back.

[codetrap]

Originally posted by ReasonOne



http://www.cra-arc.gc.ca/tx/ndvdls/t...tcntn-eng.html

examples that clarify the tax rate:

http://www.cra-arc.gc.ca/tx/ndvdls/t...eng.html#xmpl1

It's not much, but a penny in the bank is a penny in the bank to the CRA.....and if it's owed to them they'll find a way to get it back.

Damn! Though, the two examples are relating to making contributions while they're non-residents. It doesn't say anything specific about becoming a non-resident, and then having to pay taxes on contributions made while you were a resident.