US & Canada - Tax
Lily Lo CPA Professional corporation
Foreign Income Verification Statement
Do you have to file this form
All Canadian resident taxpayers (including non-resident trusts deemed
resident in Canada by section 94 of the Act) are required to file the Form T1135, Foreign Income Verification Statement if at any time in the year the total cost amount of all specified foreign property to the taxpayer was more than $100,000 (Canadian).
An individual (other than a trust) does not have to file Form T1135 for the year in which the individual first becomes a resident of Canada (section 233.7 of the Act).
How to complete this form
If the total cost of all specified foreign property held at any time during the year exceeds $100,000 but was less than $250,000, the form has been designed to provide you with the option of completing either Part A or Part B.
Due dates for filing this form
Form T1135 must be filed on or before the due date of your income tax return
or, in the case of a partnership, the due date of the partnership information
return, even if the income tax return (or partnership information return) is not
required to be filed.
Penalties - Failing to file
The penalty for failing to file a return is $25 per day for up to 100 days (minimum $100 and maximum $2,500). When failing to file is done knowingly or under circumstances amounting to gross negligence, the penalty is $500 per month for up to 24 months (maximum $12,000), less any penalties already levied. This penalty does not apply to Form T1142. After 24 months, the penalty is 5% of whichever of the following resulted in the requirement to file the information return, less any penalties mentioned above already levied.
The CRA may issue a demand to file a return to a person or partnership under subsection 233(1) of the Income Tax Act. If so, and if the person or partnership knowingly or under circumstances amounting to gross negligence fails to comply with the demand, the penalty is $1,000 per month for up to 24 months (maximum $24,000), less any penalties already levied.
Penalties - False statements or omissions
A penalty applies to people who knowingly or under circumstances amounting to gross negligence make false statements or omissions in an information return.
The penalty is the greater of either:
US & Canada Tax - Lily Lo CPA Professional Corporation - Edmonton, Alberta