The Canadian government has made it a priority to “crack down on international tax evasion and aggressive tax avoidance” and has, in doing so, proposed several changes to the Foreign Income Verification Statement (Form T1135). As a bit of a background, Form T1135 must be filed by most Canadian-resident individuals, corporations or trusts that, at any time during a year, owned specified foreign property (including most types of income-earning property held outside of Canada, other than personal property and property used in carrying on an active business) costing in total more than $100,000. Form T1135 must also be filed by partnerships that hold more than $100,000 in foreign investment property and whose non-resident members’ share of income or loss is less than 90% during the reporting period. As we reported in the spring of this year, the changes to Form T1135 proposed in this year’s federal budget include:
- Revising the form by requiring taxpayers to provide more detailed information regarding each specified foreign property.
- Allowing the form to be electronically filed.
- Extending the normal reassessment period of the tax return if certain conditions are met.
- Improving the form filing process by reminding taxpayers, on their Notice of Assessment, of the obligation to file Form T1135, and by clarifying the filing instructions.
If you need help call us at 289-521-2181, or you can send an e-mail for a free consultation appointment to firstname.lastname@example.org
For frequently asked questions or examples, check CRA web site at: