Do you have to report to the Canada Revenue Agency the foreign property that you own?

If you own foreign property, remember your reporting obligations. You must file Form T1135, Foreign Income Verification Statement, on time.

The detailed reporting requirements on Form T1135 help combat international tax evasion and aggressive tax avoidance. The information gathered through this form strengthens the CRA’s ability to identify international tax non-compliance and ensure that everyone pays their fair share.

There are substantial penalties for failing to complete and file Form T1135 accurately and on time. The purpose of these penalties is to deter taxpayers from not reporting their obligations and to encourage them to give the CRA accurate information on the foreign assets they hold outside Canada.

The following information will assist you in meeting your obligations.

Threshold

You have to file Form T1135 if you are a Canadian resident and, at any time in the year, own specified foreign property costing more than $100,000.

Due date for filing Form T1135

You have to file Form T1135 on or before the due date of your income tax return or, in case of a partnership, the due date of the partnership information return, even if the income tax return (or partnership information return) is not required to be filed. For an overview of the filing due dates for the 2017 T1135, please go to canada.ca/cra-foreign-income-verification.

The T1135 form is comprised of two parts, Part A and Part B:

  • Part A – simplified reporting method: if the total cost of all your specified foreign property is more than $100,000 but less than $250,000 throughout the year, you have the option of completing either Part A or Part B. This reporting method allows you to tick the box for each type of property you held during the year, rather than providing details for each property.
  • Part B is a detailed reporting method that you have to use if, at any time during the year, you held specified foreign property with a total cost of $250,000 or more.

Under Part B, you must provide details of each specified foreign property in the appropriate category. However, if the property is held with a Canadian registered securities dealer or with a Canadian trust company as defined in subsection 248(1) of the Income Tax Act, you can report the aggregate amount of all specified foreign property on a country-by-country basis in Category 7, Property held in an account with a Canadian registered securities dealer or a Canadian trust company.

Information about specified foreign property is available on Canada.ca at Foreign Income Verification Statement. For more information on penalties relating to not filing the T1135 form, consult the Table of Penalties.

File online

If you are an individual or a corporation, you can file Form T1135 online for the 2014 and later tax years.

For those filing on paper, please note that the mailing address for your completed form has changed. The new address is:

Winnipeg Tax Centre
Data Assessment and Evaluation Programs
Validation and Verification Section
Foreign Reporting Returns
66 Stapon Road
Winnipeg MB, R3C 3M2

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