CRA wants every person holding foreign properties above specified value to submit each year information regarding the foreign assets and income earned on those assets with a view to plug tax evasion and tax avoidance. Each year a form needs to be filled through which CRA gets all the information about the foreign properties for the persons residing in Canada. CRA has given the first-year relaxation to the new immigrants where they have the option to submit this information in the specified form or not. From the second year, it is mandatory for them also.
Which is the form for reporting?
FORM T1135 is used to report information on the various specified foreign properties held during the year if the cost value of the assets in total is more than $100K. The asset report will be detailed in the form if the cost value of specified foreign properties held during the year is more than $250K.
Who needs to fill T1135?
It is mandatory for every Canadian resident individual, trust, corporation and on many partnerships.
What is the time limit for submission of T1135?
Form T1135 Shall be submitted timely as delay in submission attracts penalty which starts with $100 and goes up to a maximum of $2500 for each year’s form T-1135. Below are the due dates for filing Form 1135.
| Taxpayer | Filing due date |
| Individuals other than Self Employed | April 30 |
| Individuals -Self Employed | June 15 |
| Corporations | With in 180 days from the end of fiscal period |
| Trusts other than testamentary trust | 90 days from Dec 31 |
| Trust- Estate trusts | If the date of death occurs in between Jan to Oct, due date to submit is following April 30; If the date of death occurs in between Nov and Dec, due date is 6 months from the date of death. |
| Partnership -where all the partners are individuals | Following March 31 from the partnership fiscal period end |
| Partnership -where all the partners are corporations | 5 months from the end of the partnership fiscal period. |
| Partnership- any other | Whichever is earlier of following. – Following March 31 from the partnership fiscal period end or -5 months from the end of the partnership fiscal period |
What are the specified properties that need to be reported in T1135?
Foreign investment property that must be reported in T1135 includes but not limited to
What does not count specified property?
There are certain assets which are kept outside of the specified property list like
What if the assets are held jointly?
If the assets are held by more than one person jointly, then the share of the respective person is to be ascertained and if the adjusted cost base (ACB) exceeds $100K, the person is required to submit the form T1135.
Whether T1135 can be e-filed, or paper filed?
You have both the options to submit T1135. It can be filed electronically, or you can send in a paper form with your tax return.
Make sure even if you are filing your taxes through the accountant, the ultimate responsibility lies with the taxpayer, and he shall give proper and timely information to the accountant. Ask in specific whether the form is submitted along with the return or separately.
Note: The information is not intended to constitute professional advice and may not be appropriate for a specific individual or fact situation. It is written by the author solely in their personal capacity and cannot be attributed to the accounting firm with which they are affiliated. It is not intended to constitute professional advice, and neither the author nor the firm with which the author is associated shall accept any liability in respect of any reliance on the information contained herein. Readers should always consult with their professional advisors in respect of their particular situations.
-Raman Nagpal
B.Com, CA, CMA, DISA
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CRA wants every person holding foreign properties above specified value to submit each year information regarding the foreign assets and income earned on those assets
