If you own foreign property that costs more than a certain government limit at any time during the year, you must file an annual return with the revenue department. You make this return on Form T1135, Foreign Income Verification Statement. Form T1135 must contain detailed information about your foreign property, including the location, revenue and maximum cost during the year. Your transaction accounts in the bank, bond, property and stocks are a part of T1135. If your stocks and shares are from the residential country you also need to give details in form T1135. If you are one of the business partners belongs to a foreign company you also need to state the details in that form.
Foreign property declaration on your tax return
When preparing your tax return you must answer the question, did you own or hold any foreign property that had a total cost of more than the limit decided by the government at any time in the year. With voluntary disclosure you can save the penalty amount if you earlier did not submit T1135 form. You can submit the disclosure form and also attach the previous T1135 forms for a safe entry. To avoid any penalties you should return your tax time to time.
Foreign property determined
Some taxpayers might think that the term foreign property refers only to real estate, while it encompasses much more than that. With form T1135 you need to include foreign property details including the life insurance offered by the foreign companies, shares of foreign mutual funds that you hold, real estate that you own outside your country, money in a bank account abroad, shares of a foreign company, an interest in a non-resident trust, bonds or debentures of a foreign country. In short any income from foreign property comes within T1135. When you tell people about the tax and how to file a tax return, it often raises some basic questions about the nature of the taxes and how the money is spent. Taxes are amounts that you require to pay to the government which uses them to fund various social programs, operating expenses and debt.
Conclusion: Foreign property that need not be declared
Not all foreign property that exceeds the certain amount limit must be reported on your tax return. Also if you own any primary property for personal interest such as cars, houses, priceless paintings and artifacts, designer ornaments, building use for running a foreign business, machineries, equipment etc. should be listed on that form. You should not forget that just because the shares of a corporation are traded on a foreign stock exchange does not mean that you have to include what they bring in your foreign income.