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ARTICLE · 10 JULY 2014

T1135: 2013 Transitional Relief Is Permanent

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We previously reported that the Canada Revenue Agency developed transitioning rules which were welcomed relief to taxpayers.

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Kenneth Keung
Kenneth Keung
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In our blog "T1135 transitional guidance" we reported that the Canada Revenue Agency ("CRA") developed transitioning rules which were welcomed relief to taxpayers but applied only to the 2013 tax year reporting period.

On July 8, 2014 the CRA announced that these T1135 transitioning rules will become permanent for 2014 and thereafter, but there are a few significant twists:

  1. Availability of the "aggregate reporting method": the "aggregate reporting method" will be available only to property held in accounts of Canadian registered security dealers and federally or provincially regulated trust companies.
  2. T3/T5 exception: most notably, the CRA eliminated the transitional exception for income earned in the Canadian registered securities dealers' account that has been reported on T3/T5 slips. The previous transitional Form T1135 provided a reporting exclusion if the taxpayer received a T3 or T5 slip from a Canadian issuer in respect of a particular

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