Question: An individual has ( $ 5 , 2 0 0 ) to invest. He can choose to invest the funds in either

An individual has

\ (\

5, 200 \)

to invest. He can choose to invest the funds in either an RRSP or a TFSA. If either investment will yield the same return, under which scenario would the TFSA lead to an overall permanent reduction in income taxes payable on the investment?

.

In no scenario will the TFSA lead to an overall permanent reduction in taxes payable on the investment.

.

In any scenario, the TFSA will lead to an overall permanent reduction in taxes payable on the investment.

.

Tax rates are lower in the year of withdrawal from the plan than the year of contribution.

.

Tax rates are higher in the year of withdrawal from the plan than the year of contribution.

$An individual has \ ( \ $ 5 , 2 0 0 \ ) to$

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