CRA confirms that taxpayers paying U.S. taxes through a Canadian trust or partnership are relieved from documenting support for their FTC claim (if T3 or T5013 issued)

At the 2016 STEP Roundtable, Q.9 (and later, at the 2016 annual CTF Conference, Q.12), CRA indicated that it had ceased exempting claims for U.S. foreign tax credits from the approach, which it already had been applying to FTC claims for other jurisdictions, of requiring a copy of the foreign tax return as well as a copy of the foreign notice of assessment (or other equivalent document) from the foreign tax authority – but that, in response to feedback on this change, it had begun to accept proof of payment to (or refund from) the foreign tax authority, rather than insisting on something like a notice of assessment.

As it turns out, CRA was also asked about this a month earlier at the May 2016 Alberta CPA Roundtable and, in addition to the other points, also stated that “Canadian information slips [e.g., T3s or T5013s] continue to be acceptable supporting documents for the FTC.”

Neal Armstrong. Summary of May 2016 Alberta CPA Roundtable, Q.10 under s. 126(1).