Principal Issues: 1. Whether a Canadian resident having an interest in an American life annuity is required to file Form T1135 (Foreign Income Verification Statement) in relation to the American life annuity? 2. How to determine whether the cost amount of the American life annuity exceeds $100,000 Canadian dollars?
Position: 1. General comments, yes if the cost exceeds $100,000. 2. Taking into consideration paragraphs (e) or (f) (as applicable) in the definition of the "cost amount" in subsection 248(1) of the Act, the taxpayer needs to obtain this information from the administrators of the American life annuity or an actuary.
Reasons: 1. subsection 233.3(1) of the Act. 2. Original American life annuity contract signed between the taxpayer's husband and the insurance company administering the American life annuity should stipulate the cost amount.