The TFSA Leverage Loophole: Borrow $1M, Park It in Covered Calls, Walk Away Rich?

A Reddit user proposes borrowing $1 million, depositing it into a TFSA, and investing in a covered-call ETF yielding ~30% annually to generate $300K in dividends while paying only 1% monthly over-contribution fees. The plan involves using the dividend income to service the loan during the year, then selling the shares to repay the principal after one year.

Why it matters: The post asks whether this strategy is feasible or constitutes tax fraud, noting the bank representative reacted with disbelief.