Foreign income verification statement

These pages provide information -- including frequently asked questions -- about Form T1135 Foreign Income Verification Statement:

• Who has to report?
• What property has to be reported?
• When does the statement have to be filed?

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Who has to report?

Form T1135 must be filed by:

• Canadian resident individuals, corporations, and trusts that -- at any time during the year -- own foreign investment property (called "specified foreign property") costing more than $100,000
• partnerships that hold more than $100,000 in foreign investment property and whose non-resident members' share of income or loss is less than 90% during the reporting period.

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What property has to be reported?

Foreign investment property that must be reported includes:

• amounts in foreign bank accounts
• shares in foreign companies
• interests in non-resident trusts
• bonds or debentures issued by foreign governments or foreign companies
• interests or units in offshore mutual funds
• real estate situated outside Canada
• other income-earning foreign property.

However, foreign investment property does not include:

• personal-use property, that is, any property used mainly for personal use and enjoyment, such as a vehicle, vacation property, jewellery, artwork, or any other such property
• assets used only in an active business, such as a business inventory or the equipment and building used in a business.

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When does the statement have to be filed?

The following reporting requirements apply only to tax years that start after 1997:

• Individuals and corporations: the statement is due on the same date as the income tax return.
• Partnerships: the statement is due on the same date as the partnership information return under section 229 of the Income Tax Regulations (or what would be the due date for this return if the partnership had to file one).