CRA T1135 Foreign Property Reporting: Official Reference

What the CRA publishes about T1135

The Canada Revenue Agency maintains a dedicated section for international tax matters. There it publishes form T1135, the Foreign Income Verification Statement, along with the instructions, the definition of specified foreign property and the rules for who must file. This is the authoritative reference for determining whether foreign holdings must be reported.

The published material explains which assets count as specified foreign property, how to report each category on the form, what records to keep, and what penalties apply for late or incomplete filing. Because the rules are rooted in the Income Tax Act, the agency's guidance is the reference point used by taxpayers, accountants and tax preparers.

The guidance does not depend on current events. The core rules change only when legislation or administrative policy changes, so the same source remains the correct reference year after year. Always read the version published on the agency's own page rather than a summary.

Who must file form T1135

You generally must file T1135 if you are a resident of Canada for tax purposes and you owned specified foreign property during the year with a total cost amount above the threshold. The threshold and the meaning of cost amount are set out on the agency's page; check the current figures there rather than relying on a remembered number.

The test looks at the total cost amount of all specified foreign property combined, not just the largest holding. A group of smaller accounts, shares or interests can push a taxpayer over the threshold even when no single asset appears significant on its own.

Certain taxpayers are excluded from the requirement, and certain assets are excluded from the definition of specified foreign property. The agency lists both categories. Confirm your own situation against the current guidance and, where the rules are unclear, seek advice from a qualified tax professional.

What counts as specified foreign property

Specified foreign property generally means property held outside Canada that the Income Tax Act requires residents to report. The categories are described individually on the agency's page, and each has its own conditions.

Some assets are excluded. Personal-use property, such as a home you use personally, and property held in certain registered plans are commonly discussed examples, but the list is specific. Read the agency's definition rather than assuming an account type is covered or exempt.

• Funds held in a foreign bank account
• Shares of foreign corporations
• Interests in non-resident trusts
• Real property located outside Canada
• Bonds and debentures issued by foreign entities
• Interests in foreign partnerships

How T1135 relates to everyday international transfers

Sending money abroad from Canada is not itself the trigger for T1135. The form reports ownership of specified foreign property at a point in time, not the transfers you made during the year. A single transfer to a family member is a different matter from holding an account or asset abroad.

The connection appears when a transfer creates or adds to property you own outside Canada. Money moved into a foreign account in your name, or used to buy foreign shares or property, may become reportable. The question is what you own, not how the funds left Canada.

Separately, money services businesses in Canada must meet anti-money-laundering obligations, including record-keeping and reporting for certain transactions. Those obligations sit with the provider, not with the sender, and they do not replace your own reporting duties.

How to file and what records to keep

Form T1135 is filed with your income tax return for the year. It is organized by category of property, and for each category you report amounts such as the maximum cost during the year, the cost at year end, income earned, and any gain or loss on disposition.

Keep supporting records: account statements, trade confirmations, property valuations, and the exchange rates you used. Amounts in foreign currency are converted to Canadian dollars, and the Bank of Canada publishes daily exchange rates that can be used for that purpose.

The agency also publishes penalties for failing to file, filing late, and making false statements or omissions, including an additional penalty where gross negligence applies. The specific amounts and conditions are described in the official guidance, so read that page before relying on any figure.

How often the guidance is updated

The agency updates its international tax pages when legislation, forms or administrative positions change. There is no fixed publication schedule, so a page can remain unchanged for long periods and then be revised. Treat the live page as the current version.

To verify figures yourself, open the form, the instructions and the international tax guidance directly on the agency's site. Confirm the threshold, the exclusions and the filing date each year. For conversion rates, use the Bank of Canada's published daily rates.

If you are transiting or travelling while managing foreign holdings, travel advisories from Global Affairs Canada are a separate but useful reference. They do not affect tax reporting, but they are relevant to holding assets or accounts in another country.

Confirming current figures at the source

Never rely on a number quoted in a summary, including this one. Thresholds, penalty amounts, prescribed forms and filing dates are stated in the official guidance and can be amended. Open the source and read the current wording.

For general information on how transfers work, including your rights when using a transfer service, the Financial Consumer Agency of Canada publishes consumer guidance. For fraud awareness and reporting, the Canadian Anti-Fraud Centre is the public resource.

Neither replaces the tax guidance. Use them alongside it: one explains the transfer, the other explains the reporting obligation that may follow from what you own.