On December 3, 2015, CRA has implemented changes to Form T1135, Foreign Income Verification Statement for the 2015 and subsequent tax years. The changes will allow taxpayers, who held specified foreign property with a total cost amount of less than $250,000, throughout the year, to report under a new simplified reporting method rather than providing the detail of each such property.
Part A is a new simplified reporting method for taxpayers who held specified foreign property with a total cost of more than $100,000, but less than $250,000, throughout the year. The taxpayers check the box for each type of property they held. Part B, the current detailed reporting method, will continue to apply to those taxpayers who, at any time during a year, held specified foreign property with a total cost of $250,000 or more. If you complete Part B, do not complete Part A (and vice versa).
Amending the previously filed return
As long as the total cost of all specified foreign property in that previous period was more than $100,000, but less than $250,000 throughout the year, you can amend the previously filed return using the simplified reporting method.
Filing prior period returns
As long as the total cost of all specified foreign property in that previous period was more than $100,000, but less than $250,000 throughout the year, you can file the prior period using the simplified returns.
Made a tax mistake or did not file your tax return
You may be liable to penalty if you provided incomplete information, omitted information or did not file the returns. But you can use the Voluntary Disclosures Program (VDP) to waive the penalty provided that certain conditions are met. Contact us if you need help with the VDP or filing your returns.
