CRA Releases Transitional Reporting Method: 2013 for T1135 – Foreign Income Verification Statement
In June 2013, the Canada Revenue Agency (CRA) launched a revised T1135 form requiring Canadian taxpayers to increase disclosure regarding specified foreign property with an aggregate cost exceeding $100,000.
For the 2013 taxation year only, the Canada Revenue Agency has announced a transitional reporting option available to taxpayers who have specified foreign property. Taxpayers required to complete Form T1135 – Foreign Income Verification Statement, will be granted the option to report under the Transitional Reporting Method.
The Transitional Reporting Method permits taxpayers who held specified foreign property in an account in the taxpayer's name (or jointly with another taxpayer) with a Canadian registered securities dealer, to report the aggregate amount of all such property held in that particular account, rather than on a security by security basis. Taxpayers who choose this method must use it for all accounts with Canadian registered securities dealers.
The taxpayer must disclose the name, account number, and registered securities dealer, the cost of the property at the end of the year, and any income, gains, or losses earned in the portfolio for the 2013 taxation year.
It is important to note that the CRA has allowed the Transitional Reporting Method as a one year relief to assist taxpayers with compliance. It is not expected that this reporting method will be available to taxpayers in the future.
For more information, please visit the Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135_whtsnw-eng.html