Under the current taxation rules, if the total cost of all “specified foreign property” owned exceedes $100,000, owners are required to complete Form T1135, the “Foreign Income Verification Statement.”
Failure to complete and submit this form on time can incur some stiff penalties. The penalty is $25 per day, to a maximum of $2,500, which can increase if you knowingly or under circumstances amounting to “gross negligence” fail to file the form.
In an increased effort to combat international tax evasion by Canadians, the 2013 federal budget promised to retool and retool and re-release a “strengthened” Form T1135. The revised version of this form was released in June 2013 by the Canada Revenue Agency.
The new edition asks for more detailed information foreign real estate holdings, including the names of specific foreign institutions and countries where these assets are located, the income accrued, and the maximum cost amount of those assets during the year.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate