Important Changes to Form T1135

The 2013 Federal Budget included a number of measures to combat international tax evasion and aggressive tax avoidance including changes to existing foreign reporting requirements. As part of these changes the Canada Revenue Agency (“CRA”) released a revised Form T1135, Foreign Income Verification Form. Taxpayers required to file this new Form T1135 will find they must now disclose significantly more information about their foreign investments to the CRA than previously required.

Who has to file Form T1135?

Canadian resident individuals, corporations, trusts and partnerships are required to file Form T1135 if they hold “specified foreign property” with a cumulative cost in excess of CAD $100,000 at any time in the year.