Canadian taxpayers with an interest in a partnership that holds
specified foreign property (as defined in subsection 233.3(1)) may
face uncertainty when assessing their form T1135 ("Foreign
Income Verification Statement") filing obligations. Depending
on the partnership's structure, either (1) the taxpayer may be
required to file form T1135 in respect of its partnership interest,
or (2) the partnership may be required to file form T1135 in
respect of its property.
Section 233.3 requires a specified Canadian entity whose total
cost amount of specified foreign property exceeds $100,000 at any
time in the year to file form T1135 by the entity's filing-due
date. A specified Canadian entity includes a taxpayer resident in
Canada and a partnership if the income attributable to non-resident
partners is less than 90 percent of the total income of the
partnership. A specified foreign property includes an interest in a
partnership that holds specified foreign property, but does
