As part of its efforts to combat tax evasion, the Canadian government has recently released a revised Form T1135, ‘Foreign Income Verification Statement’. Taxpayers must include additional information on foreign property, starting taxation years ending after June 30, 2013. Examples of assets to be reported include amounts in foreign bank accounts, offshore brokerage accounts, and certain real estate situated outside Canada.
Globally mobile employees and employers should comply with the new requirements to avoid penalties and consider proactive actions. This may include gathering information upon initial entry into Canada that may be reportable in the following years.