Subsection 233.3(1) - Definitions
Reporting Entity
Administrative Policy
24 February 2017 External T.I. 2016-0669081E5 - T1135 reporting
In 2015-0610641C6, two spouses jointly acquired a specified foreign property with a cost amount of $150,000, with Mr. A contributing $75,000 cash...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(3) | attribution rules ignored | 67 |
7 October 2011 Roundtable, 2011-0399441C6 F - T1135 - coût indiqué d'une assurance-vie
Is the cost amount of an interest in a life insurance policy the adjusted cost basis ("ACB”) as defined in s. 148(9), or the premiums paid?...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (f) | adjusted cost basis of policy is generally its “cost” under para. (f) | 121 |
31 July 2002 Internal T.I. 2002-0136937 F - Placement Français "Assurance-salaire-vie
The holder in France of an "assurance-salaire-vie," which is similar to a registered retirement savings plan except that a withdrawal from it is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 18 | withdrawal from French employee-contribution plan (assurance-salaire-vie) was not a “pension” | 99 |
Specified Canadian Entity
Administrative Policy
27 June 2016 External T.I. 2014-0532601E5 - Paragraph 94(3)(f) electing trust and form T1135
S. 94(3)(f) provides for an election which effectively permits a (s. 94) deemed non-resident trust to elect to bifurcate itself into a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(f) | no T1135 filing required by non-resident portion trust (or by particular trust if it has no foreign property) | 164 |
13 March 2015 External T.I. 2014-0547721E5 - T1135 reporting for a trust
A trust whose sole beneficiaries are exempt under 149(1)(c) does not have to file a T1135 as per s. (a)(viii) of the definition of "specified...
19 July 2000 External T.I. 1999-0009695 - Foreign reporting requirements
In a situation where a Canadian partnership held 99.99% of a US partnership which, in turn, held 99% of a second US partnership, the second US...
Specified Foreign Property
Administrative Policy
Foreign Income Verification Statement April 14, 2021
Specified foreign property is defined in subsection 233.3(1) of the Income Tax Act and includes:
- funds or intangible property (patents,...
9 December 2016 External T.I. 2016-0639481E5 - Specified foreign property-jointly held property
Does a taxpayer with a joint interest in specified foreign property but who did not contribute to its acquisition, e.g., a child who was added as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | "property of" a taxpayer applies to a beneficial (or legal?) co-owner who made no financial contribution | 187 |
1 March 2016 Internal T.I. 2016-0631181I7 - Specified foreign property - mineral rights
After noting that 2014-0522241I7 indicated that a right to mine for minerals in a mineral resource outside Canada falls within s. (b)(ii) of...
5 October 2015 Internal T.I. 2014-0522241I7 - T1135: Mineral rights situated outside of Canada
Is the right to mine minerals situated outside of Canada considered “real property” for T1135 reporting purposes, and if so how is the “cost...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount | nil cost amount for foreign resource property | 39 |
16 April 2015 External T.I. 2014-0561061E5 - Specified Foreign Property
A Canadian corporation invests in a foreign partnership which, in turn, invests in digital currency (e.g. Bitcoins) and uses currency...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 122.1 - Subsection 122.1(1) - Non-portfolio Property | digital currency holdings of a foreign partnership not used in active business | 77 |
12 May 2014 External T.I. 2014-0517021E5 - 233.3 - Definition of Specified Foreign Property
An individual ("Mr. X"), resident in Canada owns all the shares of Canco, having a cost amount higher than $100,000. Canco owns all the shares of...
24 February 2014 Internal T.I. 2013-0484461I7 - specified foreign property
A Canadian resident makes a loan to a general partnership of which he is member and non-residents also are members. CRA stated that "the rule in...
12 September 2007 External T.I. 2006-0211121E5 F - Fiducie non-résidente
Regarding the reporting obligations of a Canadian resident beneficiary of a non-resident trust that was not itself deemed resident in Canada, CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 94 - Subsection 94(1) - Resident Contributor | must generally consider whether the mooted resident contributor was resident in Canada at the trust’s year end and had made a contribution thereto then or prior thereto | 210 |
Paragraph (a)
See Also
Chan v. The Queen, 2022 TCC 87 (Informal Procedure)
The taxpayer was assessed a penalty under s. 162(7)(a) for failure to file T1135 forms regarding a bank account with the Bank of China (BofC),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | due diligence defence where taxpayer reasonably believed that he was not the beneficial owner of a Bank account in China | 305 |
| Tax Topics - General Concepts - Ownership | taxpayer did not have the beneficial ownership of a bank account which he did not use | 121 |
Administrative Policy
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 1, 2022-0936241C6 F - T1135 and situs of cryptocurrencies
Prior to the October 10, 2022 release by the OECD of its Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard, CRA...
17 May 2022 IFA Roundtable Q. 7, 2022-0926451C6 - Cryptocurrency reporting
At the 2021 APFF Financial Strategies and Instruments Roundtable, Q.11, CRA stated:
The question of where a cryptocurrency is located, deposited...
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 11, 2021-0896021C6 - APFF Q.11 - T1135 and situs of cryptocurrencies
In the U.K., HMRC's guidance states that for as long as persons are resident in the U.K., the exchange tokens they hold as beneficial owner will...
14 January 2004 External T.I. 2003-0026011E5 F - Contrat à terme sur indice boursier
Regarding foreign currency "variable margin" accounts held by registered plans with dealers, CCRA stated:
With respect to variable margin...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | unrealized gains or losses on stock index futures contracts not included in the ACB of such property | 100 |
Articles
William Musani, Ashvin Singh, "Foreign Property Reporting: Where Is Your Crypto?", Tax for the Owner-Manager, Vol. 21, No. 4, October 2021, p. 6
Test of situs of private key (p. 6)
- What is stored in a digital wallet is not the actual cryptocurrency but rather one or both of the owner’s...
Paragraph (c)
Articles
David H. Sohmer, "Do Shares of an American Company Credited to an Account with a Canadian Broker constitute ‘Specified Foreign Property’?", The Canadian Taxpayer, August 10, 2018. Vol. xl, No 16, p. 121
Adoption in Canada of UCC securities account and securities entitlement concepts (p. 123)
The Official Comment to Section 8-503 of the Uniform...
Paragraph (k)
Administrative Policy
3 November 2021 CTF Roundtable Q. 14, 2021-0911951C6 - Failure to properly file a T1135
The shares of NRco are held by Cansub, a wholly-owned subsidiary of (Canadian) Parent. Although Form T1135 states that taxpayers are not to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Foreign Affiliate | s. 95(1) FA definition is broader than under s. 233.4 | 167 |
Paragraph (n)
Administrative Policy
4 June 2020 External T.I. 2018-0753611E5 - Form T1135 and US pension plan
There was no adverse impact on the exclusion in para. (n) for a Canadian beneficiary where, following an asset insufficiency in a US qualified...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.2 - Subsection 233.2(1) - Exempt Trust - Paragraph (b) | assumption of US pension payments by Pension Benefit Guaranty Corp. did not affect exempt trust status | 179 |
12 April 2016 External T.I. 2015-0595461E5 - Australian Super Fund & T1135
An Australian Superannuation Fund is a trust that has been registered and approved by the Australian Government, is funded by compulsory and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (e) | cost amount of pension rights includes future amounts to which legal entitlement | 184 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | no penalty for reasonably estimating an unknown amount, e.g., the “cost amount” of a pension interest | 172 |
| Tax Topics - Income Tax Act - Section 233.2 - Subsection 233.2(1) - Exempt Trust | Australian Superannuation Fund not an exempt trust due to taxability | 107 |
12 August 2010 External T.I. 2010-0360171E5 F - Déclaration T-1135 et biens étrangers
A Canadian resident, who had lived in Switzerland for a number of years before returning, now holds a pension account in Switzerland known as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.2 - Subsection 233.2(1) - Exempt Trust | exempt foreign trust definition contains strict conditions | 155 |
Subsection 233.3(3) - Returns respecting foreign property
Administrative Policy
S5-F3-C1 - Taxation of a Roth IRA
No T1135, T1141, T1142 or T1134 reporting re Roth IRA if no contribution while Cdn resident]
1.22 If an Election has been filed and no Canadian...
24 February 2017 External T.I. 2016-0669081E5 - T1135 reporting
CRA considers that the attribution rules should be ignored for T1135 purposes so that, for example, an individual who received a spousal gift of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Reporting Entity | attribution rules disregarded | 196 |
17 March 2015 External T.I. 2014-0529371E5 - T1135 reporting for emigrant
An individual emigrates July 1, 2013 owning shares of non-resident corporations (that are not foreign affiliates) with a total cost amount of...
21 August 2014 External T.I. 2014-0527611E5 - T1135 for Deceased Individual
An individual died on July 1, 2013, owning shares of non-resident corporations (that were not foreign affiliates) with a cost amount of $500,000....
10 June 2013 STEP Roundtable, 2013-0485761C6 - 2013 STEP CRA Roundtable Question 3
The extension of the normal reassessment period under draft s. 152(4)(b.2) - where (a) there has been a failure to file the T1135 as and when...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b.2) | 83 |
Articles
Maureen Vance, "T1135 – The Saga Continues", Tax Topics, Wolters Kluwer, Number 2248, April 9, 2015, p. 1.
Difficulties in preparing T1135s with brokerage-provided information (p. 2)
Investment dealers have made considerable efforts to put systems in...
Forms
T1135, Foreign Income Verification Statement: As indicated in a news release on the CRA website dated 26 June 2013, the CRA is instituting...