Moore v. The Queen1
Canadian residents2 who own specified foreign
property (SFP) that has a cost of over $100,000 during the year
must complete form T1135, "Foreign Income Verification
Statement". SFP includes foreign property including real
estate, cash in bank accounts located outside Canada and intangible
property such as foreign insurance policies, interests in offshore
mutual funds, shares in non-resident corporations, or debt owed by
a non-resident. Not included is property owned primarily for
personal use or used to carry on an active business.
The Canada Revenue Agency (CRA) imposes penalties for late
filing form T1135 of $25 per day for a maximum of $2,500 as well as
additional penalties of $500 or $1,000 per month where the taxpayer
knowingly, or through gross negligence, fails to comply.
