CRA implies that complete T1134s must be filed in a voluntary disclosure for failure to report FAPI

A taxpayer had failed to report foreign accrual property income or file T1134s. Headquarters stated that to have a valid voluntary disclosure "the taxpayer must provide complete and exact information and documents for all taxation years" and that, "in the context of a voluntary disclosure respecting the declaration of FAPI, the working papers calculating the surplus accounts of the FA also can be requested for all the affected years."  The summary implies that "complete documents" include complete T1134 filings (whose informational requirements are exacting and which generally are exigible after 1995).  No problem!  All this data doubtless will be at hand.

Headquarters also noted that the penalties under ss. 162(10) or (10.1), or s. 163(2.4), which could be engaged for failure to file T1134s only in circumstances of gross negligence etc., generally could be imposed without time limitation (i.e., in the absence of a valid voluntary disclosure).  It did not suggest that failure to file T1134s was presumptively gross negligence.

Neal Armstrong. Summaries of 14 July 2014 Memo 2014-0537701I7 F under s. 220(3.1) and s. 152(4)(a)(i).