On this page…

• How do you report foreign income and other amounts?
• Foreign property
  • Shares of a non-resident corporation
• Loans and transfers to non-resident trusts
• Beneficiaries of non-resident trusts

If you were a deemed resident of Canada in 2005, you have to report your income you received in 2005 from all sources, both inside and outside Canada.

How do you report foreign income and other amounts?

If you were a deemed resident of Canada in 2005, report foreign income and other amounts (such as expenses and taxes paid) in Canadian dollars. Use the exchange rate that was in effect on the day you received the income or paid the expense. If the amount was paid at various times throughout the year, you can visit the Bank of Canada Web site at www.bankofcanada.ca, or contact the International Tax Services Office to get an average annual rate.

Tax Tip
If you were a deemed resident of Canada in 2005 and you paid foreign taxes on foreign income you received, do not reduce the amount you report by the amount of tax the foreign country withheld. However, you may be able to claim a foreign tax credit when you calculate your federal tax (see lines 431 and 433).

Foreign property

If you were a deemed resident of Canada in 2005, there is a question for you to answer on page 2 of your return, about owning or holding foreign property at any time in 2005. This refers to:

• foreign property you owned; and
• your share of foreign property in which you had an interest.

Check "Yes" if the total cost of all these properties was more than CAN$100,000 in 2005. Attach a completed copy of Form T1135, Foreign Income Verification Statement, to your return.

Note
Foreign property does not include:

• property in your registered retirement savings plan (RRSP), registered retirement income fund (RRIF), or registered pension plan (RPP);
• mutual funds registered in Canada that contain foreign investments;
• property you used or held exclusively in the course of carrying on your active business; or
• your personal-use property.

Form T1135, Foreign Income Verification Statement, contains more information about filing and a complete list of the different kinds of foreign property.

Shares of a non-resident corporation

If you (either alone or with related persons) held 10% or more of the shares of a non-resident corporation, you may have to file an additional return. For more details, get Form T1135, Foreign Income Verification Statement, or contact us.

Loans and transfers to non-resident trusts

In 2005 or a previous year, you may have loaned or transferred funds or property to a non-resident trust. If so, and you were a deemed resident of Canada, you may have to complete and file Form T1141, Information Return in Respect of Transfers or Loans to a Non-Resident Trust.

Beneficiaries of non-resident trusts

In 2005, you may have received funds or property from, or been indebted to, a non-resident trust under which you were a beneficiary. If so, and you were a deemed resident of Canada, you may have to complete and file Form T1142, Information Return in Respect of Distributions from and Indebtedness to a Non-Resident Trust.

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