In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Negligent misrepresentation
In Goldhar v R, 2023 TCC 30, the CRA alleged that certain transfers had conferred a benefit on the appellant in a total amount of about $5.5 million. The appellant argued that the transfers were inter-corporate loans that had not…
Crypto situs
While the UK Inland Revenue is prepared to treat cryptocurrency as property with a situs in the country of residence of its holder, the CRA has stated that it is still reviewing the matter (2021-0896021C6 – answer to question 11…
Situs of cryptocurrency for T1135 purposes
The authors recommend erring on the side of caution and treating cryptocurrency as foreign property for the purposes of T1135 reporting because the situs of cryptocurrency is uncertain. Musani and Singh “Foreign Property Reporting: Where Is Your Crypto?” 21:4 Tax…
Avoiding late-filing penalties
The Court in Chen v Canada (Attorney General), 2019 FC 1435, seemed to accept that a taxpayer, to avoid late-filing penalties, could have filed a T1135 with estimates in it before the deadline and then filed an amended return later.…
Due diligence reverses penalty
In Moore v R, 2019 TCC 141 (informal procedure), the taxpayer, in filing his 2016 return, realized that he needed to file a T1135 for shares he owned of a US corporation that he had acquired under an employee stock…
T1135 penalty applies automatically
The CRA has concluded that the s 162(7) penalty for late-filing a T1135 applies automatically. Answer to question 14 at the APFF Roundtable on October 6, 2017.
T1135 for part-year resident
In CRA technical interpretation 2015-0611141E5 (July 11, 2016), the CRA stated that a T1135 filed for a part-year resident should report property and transactions relating to the property for the person’s entire year that includes the time when the person…
T1135 assessments
Marlene Cepparo, “Form T1135 and Part I Tax Return Reassessment” (January 2016) 24:1 Canadian Tax Highlights discusses technical interpretation 2015-0572771I7 (September 15, 2015). A late-filing penalty for a T1135 must be assessed within the normal reassessment period for the year…