Mississauga, Ontario (PRWEB) November 01, 2013
Canadian resident taxpayers are required to report their foreign income each year in which they have Specified Foreign Property with a cost that exceeds $100,000. However, due to the increasing epidemic of international tax evasion, CRA created the Foreign Income Verification Statement, Form T1135 to combat the problem.
The difference in this reporting regime than in previous years is that more detail is required when filing your foreign income for tax purposes. For example each account outside of Canada needs to be listed, which country the accounts are being held in and any income generated in each account.
“You could be fined up to a maximum of $2,500 if you do not file the T1135, in addition the CRA could implement harsher penalties if you failed to complete the form knowingly,” said Softron President, Jake Anand. “If your foreign assets exceed $100,000 in cost, it is highly suggested that you speak to a tax professional who is up to date with this issue.”
The new Foreign Income Verification Statement is just one of many parts of the 2013 Economic Action Plan which has implemented other strong measures to combat international tax evasion and aggressive tax avoidance.
About Softron Tax:
Founded in 1982, Softron Tax is the largest tax preparation firm in Canada that is 100% Canadian owned. Softron Tax provides personal tax services in the Toronto, Mississauga and Ottawa areas. Although their main business is preparing tax returns for Canadians, they also provide small business accounting services in Toronto and foreign property tax reporting services. Their affiliate company is TaxTron, which is a tax preparation software system for Canadians looking to file their taxes via Netfile. For more information visit http://www.softrontax.com.