Foreign Income & Non-Resident Tax Services

A T1135 is generally required when a Canadian resident owns specified foreign property with a total cost above the CRA threshold of CAD $100,000 at any point in the year. It is based on cost, not market value, and it catches things people often overlook such as foreign bank accounts and shares held outside Canada. We will review your holdings and confirm whether it applies.

Canadian residents report their worldwide income in Canadian dollars, converted at the appropriate exchange rate. Where the same income was taxed abroad, a foreign tax credit may be available to reduce double taxation. The treatment depends on the type of income and the country involved.

Yes. We prepare Canadian returns for non-residents with Canadian-source income, such as rental income from a Canadian property or the sale of Canadian real estate.

Along with your Canadian slips, we need records of your foreign income, statements for foreign accounts and investments, the original cost of each foreign holding, details of any foreign tax already paid, and your dates of arrival in or departure from Canada.

Yes. Foreign pensions and investment income are regularly part of the returns we prepare, and the reporting depends on the type of income and the country it comes from.

In your first year you generally file a part-year return covering the period from your arrival date. Your residency start date matters because it determines the point from which your worldwide income becomes reportable in Canada.

Penalties for late or missed T1135 filings can be substantial. The CRA has a voluntary disclosures process that may reduce penalties for taxpayers who come forward before being contacted. We can review your history and discuss the options with you.

No. Our work covers your Canadian filing obligations. Where your situation also involves filing in another country, you will need an adviser qualified in that jurisdiction, and we are happy to work alongside them.