CRA has made, yet again, more changes to Form T1135 for 2015 and subsequent taxation years.
In a previous article, we wrote about the changes CRA made to the reporting requirements for 2014 and subsequent taxation years. More changes have been made.
The most recent changes apply to 2015 and subsequent taxation years. CRA will now permit taxpayers holding specified foreign property with a cost of less than $250,000, throughout the year, to report under a simplified method. This is a relief, considering the previous reporting requirements remained relatively exhaustive, even under the simplified reporting methods available at the time.
Taxpayers holding specified foreign property with a cost of $250,000 or more must continue reporting under the existing requirements.
Individuals will continue to be able to file Form T1135 electronically for 2014 and subsequent taxation years, while corporations and partnerships will be able to do so in the future.
The changes will simplify the reporting requirements for qualifying taxpayers to an extent, however, there remains several details CRA requires taxpayers to disclose.
It is reasonable to say that the reporting requirements are still very specific and it should not be forgotten that failure to file can result in penalties of up to $2,500 per year.
We would be pleased assist you with determining whether you are required to file Form T1135, under which reporting methods, and ensuring Form T1135 is properly filed with CRA.
Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.