What are Foreign Reporting Requirements for Canadian Taxpayers?

By ed
Income Tax Minimization, Tax, Tax Alert, Uncategorised, US Tax
February 22, 2016

If you are a Canadian taxpayer including individual, corporation or trust, you are required to report any specified foreign property owned during the tax year if the cost base of all foreign property exceeds $100,000 at any point during the year, along with the income earned during the year from that property[i].  Such property includes bank accounts, stocks, bonds and real estate.

Form T1135, Foreign income verification statement, must be filed by the due date for filing your income tax return for the particular year.  Penalties of $25 per day, up to $2,500 per taxpayer, are payable for non-disclosure or late filing[ii].

Effective 2013 and subsequent years, Canada Revenue Agency (“CRA”) amended T1135 to include significantly more information about your foreign property as follows:

  • A description of the property;
  • The country where the property is located;
  • The maximum cost of the property held during the year, as well as its cost at year-end;
  • Any income or loss from the property; and
  • Any capital gain or loss from the disposition of the property.

If you own foreign property, contact us at 705-722-4272 to help determine how the foreign reporting requirements affect you or fill out the contact form on the right.

Resources:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/menu-eng.html

http://www.cra-arc.gc.ca/E/pbg/tf/t1135/README.html

[i] http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

[ii] http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/pnlts_grd-eng.html