Changes to the Reporting Requirements for Form T1135 “Foreign Income Verification Statement”

The Canada Revenue Agency (“CRA”) has once again made changes to Form T1135 “Foreign Income Verification Statement” (“T1135”) for reporting requirements. For 2015 and subsequent years, taxpayers with specified foreign property[i] with a total cost of less than $250,000 will be able to report using a new simplified method.

Under the new simplified method the taxpayer will indicate what types of specified foreign assets are owned, provide the country codes of the top three countries based on maximum cost, and any gains or losses reported from the disposition of all specified foreign property.

Taxpayer’s who hold specified foreign property with a cost of $250,000 or more will still be required to report using the current detailed method of reporting.