Last updated: March 13 2014
On February 28, 2014, CRA – recognizing the difficulties of meeting the filing requirements necessary for the completion of form T1135 – Foreign Income Verification Statement required by Canadian Taxpayers – eased the reporting requirements and extended the filing due date to July 31, 2014.
This provides three important tax filing dates to note this tax filing year:
The T1135 compliance changes have at least somewhat eased the tax migraine that has been pounding in the heads of tax professionals and investment advisors for the past three months.
For 2013 only, taxpayers can now choose to report an aggregation of all specified properties held with a securities dealer/mutual fund trust, but if you do so, you’ll be required to use that method with all registered securities dealers you deal with. If you choose that method:
Take special note of Section 2 of the T1135 required to report holdings in “Shares of non-resident corporations, other than foreign affiliates” in detail. Using the transitional method of reporting, go to Part 6, rather than Part 2 and list:
Other “must-know information” about Form T1135:
While these changes do not eliminate the need to pay attention to form T1135, it does ease the compliance burden for the current year. Financial professionals now have a year to get information and reports in order for clients because for 2014, form T1135 is back in all its original required detail.
This is just another reason not to rush tax filings until all the information is available from financial firms. Preparing annual Personal Net Worth Statements with tax filings is a good way to ensure there are no missing links.
Thanks to Alan Rowell, MFA, DFA-Tax Services Specialist, and President of The Accounting Place for filing this report, together with notes from Knowledge Bureau’s research department .