The Canadian Minister of National Revenue announced enhancements to Form T1135, Foreign Income Verification Statement, that require more detailed reporting requirements for Canadians holding foreign property with a cost of over $100,000 (CAD). While the criteria for who must file this Form T1135 have not changed, the taxpayer meeting this new threshold must report:
- the name of the specific foreign institution or other entity holding funds outside Canada
- the specific foreign country to which the foreign property relates and
- the income generated from the foreign property
These changes are only one of several proposed measures in the Economic Action Plan 2013 that seek to combat international tax evasion. The Minister also announced a $30 million investment to oversee these new measures.
Additional proposals from the Economic Action Plan 2013 include a new Stop International Tax Evasion Program, the mandatory reporting to CRA of electronic funds transfers over CAD $100,000 and streamlines the judicial process that provides CRA authorization to obtain information from third parties.
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