Form T1135 issues: Room to improve

Find out how CPA Canada is working to reduce the red tape and challenges associated with form T1135 filing requirements.

Form T1135, Foreign Income Verification Statement, has created significant challenges for taxpayers, tax preparers and members of the investment community. Although the Canada Revenue Agency (CRA) has made progress in relieving some of the filing burden, serious issues remain.

The CRA has confirmed that, for 2014 and after, a streamlined reporting method will be available for property held in the accounts of Canadian registered securities dealers, and federally or provincially regulated trust companies. The CRA presented these and several other improvements — which are summarized in a recent Tax blog — at a June 2014 stakeholder meeting organized by CPA Canada.

Since then, CPA Canada has taken part in developing two follow-up submissions to the government on outstanding Form T1135 issues:

  • A submission to the Department of Finance Canada, developed jointly with the Investment Industry Association of Canada, makes a compelling case for raising the current $100,000 threshold for foreign asset reporting to $250,000.
  • A second submission from CPA Canada sets out specific, practical questions related to Form T1135 filings for 2014 and raises some more general issues and recommendations in the interests of taxpayers and the CRA that should be addressed.

CPA Canada will continue collaborating with the federal government, investment community and other stakeholders to determine how the CRA can meet its enforcement objectives while further reducing the red tape created by the current T1135 filing requirements.