In June 2013, the Canada Revenue Agency (CRA) issued a revised version of this form, which applies to tax years ending after June 30, 2013. The revised Form T1135 asks for more detailed information, including the names of specific foreign institutions and countries where offshore assets are located, the foreign income earned on those assets and the maximum cost amount of those assets during the year.
For the 2013 tax year only, the CRA will assist taxpayers to transition to the new requirements by permitting streamlined reporting for certain specified foreign property on Form T1135.
Specifically, a taxpayer who held specified foreign property in an account with a Canadian registered securities dealer (as defined in subsection 248(1) of the Income Tax Act) may now report the combined value of all such property at the end of the tax year, rather than reporting the details of each property. This combined value should be included in Category 6 of Form T1135, “Other property outside of Canada.” If a taxpayer chooses to use the 2013 transitional reporting method, the taxpayer must use this reporting method for all accounts with Canadian registered securities dealers.
In addition, unit trusts (as defined in subsection 108(2) of the Income Tax Act) now have the option to report the combined value of all of their specified foreign property in the same manner for their 2013 tax year.
The CRA is also extending the filing deadline for Form T1135 for the 2013 tax year to July 31, 2014, for all taxpayers, in order to provide further assistance in the transition to the new reporting requirements.