T1135 for corporations: who files, when and how

A corporation resident in Canada files the T1135, Foreign Income Verification Statement, when the total cost amount of its specified foreign property was more than $100,000 at any time in the tax year. Cost amount generally means the adjusted cost base, not the market value.

• Part A, simplified reporting: when the total cost was under $250,000 throughout the year.
• Part B, detailed reporting: when it was $250,000 or more at any time in the year; each property is reported by category.

• Property used or held exclusively in carrying on an active business.
• Personal-use property.
• Shares or debt of a foreign affiliate (reported on the T1134 instead).
• Shares of Canadian corporations and units of Canadian mutual fund trusts, even when they hold foreign investments.

The T1135 is due on or before the due date of the corporation's income tax return: six months after the tax year end. It can be filed electronically for 2014 and later tax years. Penalties apply to late or incomplete forms; relief can be requested with form RC4288.

Sources: CRA, Questions and answers about Form T1135; CRA, Form T1135.

AuraTax is listed by the CRA for the electronic filing of the T1135, as well as the T1134, T106 and RC4649. It prepares the T1135 in the same corporation file as the T2 and transmits it on its own.