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The following News Release or Speech has just been posted on the Finance Canada Site.

Ottawa, January 2 2009
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Ottawa (Ontario), January 2, 2009. The Honourable Jim Flaherty, Minister of Finance, the Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture), and Mr. Peter Aceto, President and CEO of ING DIRECT Canada, today welcomed the availability of the new Tax-Free Savings Account (TFSA) introduced by the Government of Canada in the 2008 Budget.

“The Tax-Free Savings Account is the single most important personal savings vehicle since the introduction of the RRSP,” said Minister Flaherty. “It will give Canadians more flexibility than ever in saving for the future. Effective January 1, Canadians 18 years of age and older can set aside up to $5000 every year in a variety of savings options and never pay tax on the income earned or on withdrawals.”

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The following is available on the Canada Newsroom:

Ottawa, June 18, 2008
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The Honourable Jim Flaherty, Minister of Finance, today welcomed the support of the Senate and the House of Commons for the passage of Bill C-50, legislation that will help strengthen the Canadian economy. The bill received Royal Assent today, allowing for the implementation of important elements of Budget 2008. Key measures in the bill include the Tax-Free Savings Account, initiatives to modernize Canada’s immigration system, increased funding for more front-line police officers and public transit across Canada, and increased support for post-secondary students.

“Our government is providing responsible leadership in challenging times by focusing on the priorities of Canadians, cutting taxes, and investing in people, knowledge and communities,” said Minister Flaherty. “Bill C-50 is a balanced, focused and prudent bill that will strengthen our economic fundamentals and better position Canada to compete in this highly competitive global economy.”

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The proposed TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of contributions and earnings from the account are not taxable. The February 26, 2008 Budget proposed that this starts January 1, 2009.

What Is This TFSA?

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