RESOURCES

You may find the sites listed below useful resources. Hendry Warren LLP has no control over these sites. Our privacy policies do not apply to them. Hendry Warren LLP offers no guarantee as to the accuracy of information found on these sites.

Canada Revenue Agency
Finance Canada
Ontario Ministry of Finance
Revenu Quebec
Bank of Canada
Canada Business

Major Tax Changes Affecting Small Businesses Ahead - Make Your Voice Heard!

Providing your Feedback on Major Changes Affecting Private Corporations

If you have heard about recent changes proposed by the Liberal Government or have read our July Newsletter “Major Tax Changes Affecting Private Corporations”, you may be wondering how to provide your feedback.

The Government has invited Canadian taxpayers to submit comments by October 2, 2017. Feedback can be submitted via email to fin.consultation.fin@canada.ca. We will be submitting feedback as tax and business advisors of private corporations and we encourage the small business community to reach out and provide their feedback as well. 

It should be noted that the Department of Finance Canada has stated that they may make public some of the responses received or may provide summaries in its public documents. Parties making submissions are asked to clearly indicate the name of the individual or the organization that should be identified as having made the submission. Submissions should be provided electronically in PDF format or in plain text to facilitate posting.

To ensure your privacy and confidentiality, the Department of Finance Canada is asking that the following items be included in the submission:

  • consent to the disclosure of your submission in whole or in part
  • request that your identity and any personal identifiers be removed prior to publication
  • wish any portions of your submission to be kept confidential (if so, clearly identify the confidential portions)

In addition, please note that information received throughout this submission process remains subject to the Access to Information Act and the Privacy Act.

The Department of Finance has provided a list of questions, here, on items for which they specifically seek feedback.

While these questions invite specific feedback, we propose that Canadian taxpayers should express any other feedback or suggestions that may have with regards to the proposed legislation. Hendry Warren LLP can assist you in understanding these rules and navigating a path for the future or assist you in organizing and understanding your feedback for Finance. Please contact us for more information.

The 2017 CPA Canada Federal Budget Commentary

2016 PERSONAL TAX CHECKLIST, IMPORTANT TAX HIGHLIGHTS AND FORMS

To assist with personal income tax preparation, Hendry Warren's 2016 Tax Highlights, Personal Income Tax Return Checklist and consent forms are available below:

The 2016 CPA Canada Federal Budget Commentary

2015 PERSONAL TAX CHECKLIST, IMPORTANT TAX HIGHLIGHTS AND FORMS

To assist with personal income tax preparation, Hendry Warren's 2015 Tax Highlights, Personal Income Tax Return Checklist and consent forms are available below:

 

The 2015 CPA Canada Federal Budget Commentary

Released April 21, 2015

2014 PERSONAL TAX CHECKLIST, IMPORTANT TAX HIGHLIGHTS AND FORMS

February 17, 2015

To assist with personal income tax preparation, Hendry Warren’s 2014 Tax Highlights, Personal Income Tax Return Checklist and consent forms are available below:

2013 PERSONAL TAX CHECKLIST, IMPORTANT TAX HIGHLIGHTS AND FORMS

February 19, 2014

To assist with personal income tax preparation, Hendry Warren’s 2013 Tax Highlights, Personal Income Tax Return Checklist and consent forms are available below:

Foreign Income Verification Statement (Form T1135)

February 7, 2014

In recent years, there have been increased measures implemented to ensure that taxpayers are disclosing and reporting international income. Form T1135 - Foreign Income Verification Statement is required to be filed by Canadian taxpayers who hold specified foreign property with a cumulative cost in excess of $100,000 (Canadian) at any time during the yearSpecified foreign property includes the following;

  • Funds held outside Canada
  • Shares of non-resident corporations
  • Indebtedness owed by non-residents
  • Interest in certain non-resident trusts
  • Real property situated outside Canada (other than personal use property and real property used in active business)
  • Other types of foreign property such as intangible property not used in business and certain rights under contract.
  • While the form is not a new requirement, the form has been updated for taxation years ending after June 30, 2013 to include significant additional reporting requirements. The 2013 taxation year will be the first year that the new form will be applicable to personal taxpayers. The broad scope of reporting will include many taxpayers and will require extremely detailed reporting.

An example that would apply to many taxpayers would be an investment portfolio which holds shares of non-resident corporations. If the aggregate cost of investment in non-resident corporations exceeded $100,000 (Canadian) at any point in the year, the taxpayer would be required to file Form T1135. The reporting is determined on a share by share basis, unless income from the specific share is reported on a T-slip. Taxpayers would be required to report the country, maximum cost during the year, cost at the end of the year, income (loss) and gain (loss) on a share by share basis. We encourage you to contact your investment advisor to obtain this information. Please note that registered investments (RRSP, TFSA, etc) are exempt for T1135 reporting purposes.     

Other examples can be found at http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135_fq-eng.html.

You are responsible to file your T1135 Form. The form must be filed with the CRA by the income tax filing deadline for the particular year. The penalty for non-compliance is $25 per day to a maximum of $2,500 per year, for each year that a taxpayer in non-compliant. This form cannot be electronically filed and must be signed and sent to the CRA in paper form.     

Please carefully consider your property in determining whether you hold specified foreign property, and whether you would be required to file a T1135. We would be happy to assist you in determining whether this form is applicable to you. As described, the changes will considerably increase the time and information required to accurately complete the form. If you require our assistance in preparing this form, we will require you or your investment advisor to provide the information necessary to complete the form, based on the type of foreign property held. We have attached a blank T1135 form at the link in the first paragarah, to illustrate the type of information required to complete the form.

For more information, please contact our office or refer to our website under resources “2013 Personal Income Tax Return Checklist and Forms”.