TFSA Implications:

If you are a Canadian Resident (for income tax purpose) who
has been 18 years or older since 2009, you’d have a TFSA limit of $46,500
today.  TFSA is an important tool for
your long term savings. There are a few things you must keep in mind while
operating a TFSA account.
Over-contribution: Over-contribution could be
very costly, any amount that you over-contribute is subject to 1% tax every
month until you withdraw the over-contribution. To put this into perspective,
if you have over-contributed $10,000 in January of a given year, and you have
not withdrawn the over-contribution throughout the year, you will have a TFSA
tax of $1,200. And it does not end here, if you do not file the TFSA return and
pay the taxes, you may become subject to other fines, penalties and
interests.  There are several reason for
this mistake:
a.       You
simply over contribute without calculating your TFSA limit
b.      You
calculated an amount in your limit where in that year you were not eligible to
get TFSA limit:
If you are under age of 18, you do not
accumulate TFSA limit
If you are non-resident of Canada in any given
year, you do not accumulate TFSA limit.
c.       You
withdraw an amount from your TFSA in the year that only gets restored in the
next calendar year. Therefore, if you re-contribute that same amount in the
same year and you have already reached your contribution limit, it will be
considered as over-contribution.
Naming beneficiary instead of successor holder:
As a successor holder that person becomes the new holder of your TFSA and its
tax free status is automatically preserved, on the other hand as a beneficiary
there will be no tax implication in case of death but there will be extra paper
work and any income earned after the death and increase in FMV or income will
be subject to tax.
Foreign Income: 
Foreign dividend paid to a TFSA is subject to withholding tax, a
non-registered account is a better choice for foreign dividend paying
investment.  A non-registered account
will enable taxpayer to claim foreign tax credit to offset the withholding tax
Market loss: Market losses can impact your
contribution room. If there is a change in the value of your entire TFSA
account, it will impact your withholding, and you can recontribute only what
you withhold excluding the new limits. Fortunately, the opposite is true for
gains; therefore, if you close all your accounts, and open a new one, ensure
that you are only contributing up to your limit. You should contact your tax
specialist to ensure the proper limit.
TFSA investment must be eligible: You need to
make sure the investment you are putting in your TFSA is eligible for TFSA
investment.  The securities that are not
traded through recognized stock exchange will not be eligible for TFSA
investment. This may result in tax implications.