I cannot afford to pay a $500 penalty for a misunderstanding. The penalty is 10% of my total investment for 2009, which is a huge percentage especially when you consider the penalty would be paid with after tax dollars.
I feel this penalty is unfair and takes advantage of a technicality.
My papers show a withdrawal of $5,000 on March 24th 2009, and a redeposit on March 26th, 2009. It took two days for the transaction to process. It would have taken the same amount of time to do a bank-to-bank transfer.
I am not sure why this TFSA rule is in place, but I am sure that the rule was not intended to punish or take advantage of people who made the mistake I did.
You can forgive the misunderstanding, or based on timing you may consider my withdrawal and deposit a “qualified transfer”, or you can understand that the program is new and the rules need to be a little clearer, or you can be lenient with me based on compassionate grounds.
In the name of fairness and humanity, please forgive this penalty which I feel is cruel and unjust.