Frequently Asked Questions
What is the purpose of CRA’s form T1135 Foreign Income Verification Statement?
When foreign investment property (specified foreign property) costing more than $100,000
Canadian is owned at any time in the year, Form T1135, Foreign Income Verification Statement,
must be filed. This form must be filed by Canadian resident individuals, corporations and trusts,
as well as many partnerships.
What are Specified Foreign Property?
Specified Foreign Property is defined in the Income Tax Act subsection 233.3(1). It includes but
is not limited to:
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funds or intangible property (patents, copyrights, etc.) situated, deposited or held
outside Canada;
tangible property situated outside of Canada;
a share of the capital stock of a non-resident corporation held by the taxpayer or by an
agent on behalf of the taxpayer;
an interest in a non-resident trust that was acquired for consideration, other than an
interest in a non-resident trust that is a foreign affiliate for the purposes of section
233.4 of the Act;
shares of corporations resident in Canada held by you or for you outside Canada;
an interest in a partnership that holds a specified foreign property unless the
partnership is required to file Form T1135;
an interest in, or right with respect to, an entity that is a non-resident;
a property that is convertible into, exchangeable for, or confers a right to acquire a
property that is specified foreign property;
a debt owed by a non-resident, including government and corporate bonds,
debentures, mortgages, and notes receivable;
an interest in a foreign insurance policy; and
precious metals, gold certificates, and futures contracts held outside Canada.
Specified foreign property does not include:
 a property used or held exclusively in carrying on an active business;
 a share of the capital stock or indebtedness of a foreign affiliate;
 an interest in a trust described in paragraph (a) or (b) of the definition of "exempt
trust" in subsection 233.2(1) of the Act;
 a personal-use property as defined in section 54 of the Act; and
 an interest in, or a right to acquire, any of the above-noted excluded foreign property.
Speak with your tax advisor to whether your specific assets are considered Specified Foreign
Property.
Are MD and MDPIM mutual funds considered Specified Foreign Property?
MD and MDPIM mutual funds are not considered to be Specified Foreign Property for T1135
reporting purposes. Although some MD and MDPIM mutual funds do hold underlying foreign
investments, these mutual funds are Canadian registered mutual funds and therefore do not meet
the definition. Therefore these funds are not reportable on the T1135.
Does Specified Foreign Property held in registered plans, such as RRSPs and TFSAs have
to be reported on form T1135?
Specified foreign property held in an RRSP or a TFSA is excluded from form T1135 reporting
requirements.
Are there penalties for failure to file form T1135 or for omitting any information on the
form?
Certain penalties apply for failing to file form T1135 by the reporting deadline, and for making a
false statement or omission about the required information. For more information, go to the
Canada Revenue Agency’s Table of penalties.
Help in regard to completing the T1135?
As the completion of the T1135 is a personal tax requirement that encompasses all Specified Foreign
Property including assets not held with us, we cannot provide tax advice with regards to whether or not
a T1135 is required. In addition, we cannot aid clients in determining which of their investments may or
may not meet the definition of Specified Foreign Property. These types of questions would be best
served by an accountant or tax specialist. However useful material such as duplicate copies of account
statements, which detail investment costs and fair market values at a specific point in time, can be
provided if requested.
CRA T1135 Frequently Asked Questions
For additional general T1135 questions please see the Canada Revenue Agency’s Questions and answers
about Form T1135.