What happens if Andrew, who is not a Canadian resident, tries to contribute to a TFSA?

When considering whether a non-resident, like Andrew, can contribute to a Tax-Free Savings Account (TFSA) in Canada, it's essential to understand the regulations that govern this tax-advantaged account.

A TFSA is designed specifically for Canadian residents, and contributions to this account are only permitted if the individual is considered a resident of Canada for tax purposes. Therefore, if Andrew is not a Canadian resident, he is not eligible to open a TFSA or to contribute to one at all.

This rule is in place to ensure that the tax benefits associated with a TFSA are only available to individuals who are subject to Canadian taxation. Allowing non-residents to contribute could lead to complications in tax reporting and enforcement. Consequently, Andrew cannot contribute to a TFSA, making his situation clear and straightforward based on the existing tax laws in Canada.

Options entailing tax penalties, unrestricted contributions, or specific contribution limits do not apply, as the fundamental issue is the ineligibility of non-residents to contribute to this type of account.