You're trading in the tax free compounding of the TFSA for the tax deferral RRSP and getting a refund.  Sounds like a plan to me if the RRSP is your ultimate goal.  Those at TFSA limits could simply take out in Dec so they can use their TFSA space right away the following year - not to mention they'd have another $5,500 of additional space from the next year's available space.