March 31, 2014

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For 2014, there are some changes to Form T1135 Foreign Income Verification Statement. This form is required where a taxpayer holds “specified foreign property” with a cost amount of more than $100,000 (Canadian) in total at any time during the year. The criteria for those who must file this form has not changed; however, the Form has been revised and may require more information to be disclosed to the Canada Revenue Agency.

For more information read full article below or contact one of our tax advisors here.

The CRA has also extended the filing deadline for Form T1135 for the 2013 tax year to July 31, 2014, however we would like to complete this filing together with your 2013 personal income tax return.

If you hold your foreign investments in a Canadian brokerage account, you should receive a T3 or T5 slip in respect of income earned on your foreign property. In these cases we should not require any additional information.

If you do not receive a T3 or T5 slip, please ensure that you include the following information when you provide your tax information to us, or provide contact information of your advisor or broker. The information should be provided on a property by property basis.

For Funds Held Outside Canada

  • Name of the bank or other entity holding the funds
  • Country where the funds are held
  • Maximum amount of funds held during the year
  • Funds held at December 31, 2013
  • Income earned

For Shares of Non-Resident Corporations (other than foreign affiliates)

  • Name of the corporation
  • Country of residence of the corporation
  • Maximum cost amount during the year
  • Cost amount at December 31, 2013
  • Income earned
  • Gains or losses on disposal

For Indebtedness Owed by Non-Residents

  • Description of the indebtedness
  • Country of residence of the non-resident
  • Maximum cost amount during the year
  • Cost amount at December 31, 2013
  • Income earned
  • Gains or losses on disposal

For Interest in Non-Resident Trusts

  • Name of the trust
  • Country of residence of the trust
  • Maximum cost amount during the year
  • Cost amount at December 31, 2013
  • Income earned
  • Gains or losses on disposal

For Rental Property Outside Canada
Please provide us with similar information as in previous years. If you acquired a new rental property outside Canada in 2013, please provide the following:

  • Description of the property
  • Country where the property is located
  • Maximum cost amount during the year
  • Cost amount at December 31, 2013
  • Income earned
  • Gains or losses on disposal

We do not need information on personal property which is not rented

For Other Types of Property Outside Canada

  • Description of the property
  • Country where the property is located
  • Maximum cost amount during the year
  • Cost amount at December 31, 2013
  • Income earned
  • Gains or losses on disposal

A copy of the new Form T1135 may be found in the Canada Revenue Agency’s online library here.  Please do not hesitate to contact us if you have any questions as to your required filing obligations.

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