Canadians with income from foreign assets are now obliged to report them in much more detail on Form T1135. It demands descriptions of all the foreign property, as well as the country of location, maximum cost base, exact income or loss generated, and the gain or loss from disposals. The new regime applies from tax year 2013 onwards.
The changes to Form T1135, announced in the 2013 federal budget, include:
- Revising the form by requiring taxpayers to provide more detailed information regarding each specified foreign property.
- Allowing the form to be electronically filed.
- Extending the normal reassessment period of the tax return if certain conditions are met.
- Improving the form filing process by reminding taxpayers, on their Notice of Assessment, of the obligation to file Form T1135, and by clarifying the filing instructions.
The updated and revised Form T1135 can be found on the CRA website.