CCRA is cracking down on unreported foreign income and investments.
If, during the year, you owned foreign property with a total cost greater than $100,000 (Cdn), you must complete form T1135, Foreign Income Verification Statement. As a Canadian resident, you are required to report and pay tax on your world income on your personal tax return. Foreign property information on this form will likely be used to assess the reasonableness of your current and previous foreign income reported.
The penalties for failing to file this form are harsh. Answer this question correctly and include all your world income, including income from foreign property, on your 2001 personal income tax return.
Please note that it is the original cost of all foreign property, in Canadian dollars, that is relevant.
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