In June 2013, the Canada Revenue Agency (CRA) revised Form T1135 – Foreign Income Verification Statement, requiring Canadian residents to file accurate, detailed information about their foreign property.
As mentioned in a previous release, on February 26, 2014, the CRA announced a streamlined method for taxpayers required to file Form T1135.
This transitional reporting method was intended to ease the shift to the new form; however, it applies to the 2013 taxation year only.
On July 8, 2014, the CRA announced permanent relief for the 2014 and later taxation years. The revised form is an extension of the 2013 transitional method, with a few amendments.
Essentially, the changes will allow taxpayers to report aggregate amounts for specified foreign property held in accounts with registered securities dealers and Canadian trust companies rather than providing the detail of each property separately. Taxpayers are required to provide the aggregate value of the foreign property in these accounts by country. In addition, the reporting exception that excludes certain property from the detailed reporting requirement where the taxpayer has received a T3 or a T5 slip has been eliminated.
Form T1135 is required for all taxpayers who, at any time during the year, own foreign property with a total cost amount in excess of $100,000, excluding foreign property that is for personal use or held in the course of carrying on an active business. The deadline for submitting the T1135 is the same as the taxpayer’s deadline for filing an income tax return.
Please contact your FBL expert with any questions regarding Form T1135.