For taxpayers required to file Form T1135, ‘Foreign Income Verification Statement,’ changes announced on July 8, 2014, by the Canada Revenue Agency (CRA):
Canadian investors who hold specified foreign property with a cost amount exceeding $100,000, at any time in the year, are required to file Form T1135, ‘Foreign Income Verification Statement’ for that year.
The CRA had announced that, starting for taxation years ending after June 30, 2013, taxpayers required to file Form T1135 must include additional information on foreign property.
For more information, see our Tax Insights ‘More details needed on Foreign Income Verification Statement (Form T1135): Ensure you comply.’
On February 26, 2014, the CRA allowed taxpayers to transition to the new requirements by permitting streamlined reporting for certain foreign property, for the 2013 taxation year. The transitional measures are discussed in our Tax Insights ‘Foreign Income Verification Statement (Form T1135): Transitional rules announced’ at www.pwc.com/ca/taxinsights.
The CRA had announced that, for the 2013 taxation year only, taxpayers who hold specified foreign property in an account with a Canadian registered securities dealer could report the combined value of this property, rather than the details of each property.
A taxpayer choosing this reporting method must use it for all accounts with Canadian registered securities dealers.