Section 207.03 — Income Tax Act: Tax payable on non-resident contributions

If, at a particular time, a non-resident individual makes a contribution under a TFSA (other than a contribution that is a qualifying transfer or an exempt contribution), the individual shall pay a tax under this Part equal to 1% of the amount of the contribution in respect of each month that ends after the particular time and before the earlier of the first time after the particular time at which the amount of the contribution is equalled or exceeded by the total of all amounts each of which is a distribution that is made after the particular time under a TFSA of which the individual is the holder, and that the individual designates in prescribed manner to be a distribution in connection with the contribution and not in connection with any other contribution, and the time at which the individual becomes resident in Canada.