Canadian government cracks down on foreign assets
The form – which requires Canadian taxpayers to provide detailed information about their assets held outside Canada – will ask in more detail about the location of specified foreign property and the combined income earned through investment in such property. Any resident holding overseas property costing over CAD100,000 will have to provide additional information to the CRA.
In the revised form taxpayers will be required to provide details on the name of the specific foreign institution or other entity holding funds outside of Canada, as well as the name of each non-resident corporation in which the taxpayer owns shares. In terms of property, the taxpayer is required to detail the maximum cost amount during the year and report the cost amount of the property at year-end. Any foreign income generated and revenue earned on property will also be included on the new form.
Launching the new T115, parliamentary secretary Cathy McLeod said: "The strengthened reporting requirements are just one example of the actions being taken by our Government to crack down on tax cheats. These measures are great news for hard-working Canadians who pay their fair share and bad news for those who may seek to cheat the system."
The new law will impact immigrants who are still holding assets back home. The CRA has been keen to stress that failure to report any income from domestic or foreign sources is illegal, and that it will actively pursue cases of non-compliance.
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