[ZTWsugardaddy]

paolo,Feb 25 2009, 10:16 PM Wrote:I never got taxed...  how are some people getting taxed on their Savings Accounts from their banks? is this not the same Savings Account I'm thinking about?
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Whever you earn interest, the banks send you a T5 for the interest amount which you must declare on your income tax as "income from investments". Sometimes it's a sizeable amount (several thousand) which when added to your regular T4 income means additional taxes payable. A lot of banks don't send you one for small petty amounts such as a few dollars. As Steve pointed out, legally, you're supposed to declare all interests even if no T5 was issued.

Steve, be careful with your investments. As far as I know (I may be wrong) since you don't pay tax on your gains, on the flip side, when you lose, unlike outside of the TFSA , you can't write off losses either.