Chris Baek & Co., Ltd.

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News

The launch of a strengthened Foreign Income Verification Statement (Form T1135)

 

Starting with the 2013 taxation year, taxpayers who hold foreign property over $100,000 are required to provide additional information to CRA.

 

Specified foreign property that must be reported includes:

 

- Funds held outside Canada

- Shares of non-resident corporations (other than foreign affiliates)

- Indebtedness owed by non-residents (other than from foreign affiliates)

- Interests in certain non-resident trusts

- Real property situated outside Canada (other than real property used for personal use or in an active business)

- Other types of foreign property

 

Penalties that are applicable for failure to file Form T1135 by the reporting deadline:

 

- Failing to file a return: $25 per day for up to 100 days (minimum $100 and maximum $2,500)

- Failure to file done knowingly or under circumstances amounting to gross negligence: $500 per month for up to 24 months (maximum $12,000)

- After 24 months, the penalty becomes 5% of the cost of the foreign property

- Make false statements or omissions: the greater of either $24,000 or 5% of whichever of the foreign property

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Tel: 604-421-5888

 

Fax: 604-421-5885

 

Email: info@tax247.ca

 

330 - 9940 Lougheed Hwy.

Burnaby,  BC  V3J 1N3