Mr. Pierre LeBlanc at the Human Resources, Skills and Social Development and the Status of Persons with Disabilities Committee

On October 18th, 2016. See this statement in context.

October 18th, 2016 / 10:35 a.m.

Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance

Okay.

I said they would be more beneficial than RRSPs.

In the case of RRSPs, contributions are deductible. In addition, contributions and investment income are not taxed at the time, but are taxed during retirement. They are also included in the income used to calculate income-tested benefits such as the GIS.

In the case of TFSAs, the opposite is true. The reason they are more appealing to low-income individuals is that neither the investment income earned in a TFSA nor withdrawals from it are included in the calculation of income-tested benefits.

See context to find out what was said next.