Course Details


Course Name: T1134 and T1135 Reporting: Foreign Affiliates and Foreign Assets
CPD Hours: 1
Type: Online/Video
Price: $60 $54


Description:
T1134 and T1135 Reporting: Foreign Affiliates and Foreign Assets is a comprehensive, practitioner-focused CPD course designed for Canadian accountants who need to navigate the increasingly complex landscape of international tax reporting. As the Canada Revenue Agency continues to expand its focus on offshore compliance and data analytics, accurate reporting of foreign affiliates and specified foreign property has become a critical risk area for both individuals and corporations.

This course provides a clear and structured understanding of the reporting requirements under Forms T1134 (Information Return Relating to Controlled and Not-Controlled Foreign Affiliates) and T1135 (Foreign Income Verification Statement). Participants will gain practical knowledge of key definitions, filing thresholds, reporting methods, and the underlying tax concepts such as Foreign Accrual Property Income (FAPI) and the surplus system.

Through step-by-step guidance and real-world examples, the course explores how to identify reportable foreign assets, determine filing obligations, and accurately complete disclosures while avoiding common errors that can lead to significant penalties. It also highlights CRA audit trends, risk triggers, and strategies for managing compliance, including voluntary disclosures and audit defense approaches.

Designed with a practical, real-world lens, this course equips professionals with the tools and confidence to handle foreign reporting obligations effectively—whether advising clients or managing corporate compliance. By the end of the course, participants will be able to assess reporting requirements, apply the rules correctly, and implement best practices to reduce risk in cross-border tax reporting.


Topics:
Topic 1: Introduction to Foreign Reporting and Compliance
1.1: Overview of Canada’s World-Wide Income Tax System.
1.2: The "Why": Purpose of Transparency and Anti-Avoidance .Section 233.1 to 233.7..
1.3: Penalties for Non-Compliance: Overview of the harsh "per day" and "gross negligence" fines.
Topic 2: T1135 – The Foreign Income Verification Statement
2.1: Filing Thresholds: The $100,000 and $250,000 cost-basis tiers.
2.2: Defining Specified Foreign Property .SFP.: What is included and what is excluded .e.g., personal-use property..
2.3: Valuation Rules: Original cost vs. Fair Market Value and handling foreign currency conversion.
Topic 3: T1135 – Complex Scenarios and Reporting Methods
3.1: The "Simplified" vs. "Detailed" reporting methods.
3.2: Reporting Assets held in Canadian Brokerage accounts.
3.3: Attribution Rules and Joint Ownership: Who is the "true" filer?
Topic 4: T1134 – Information Return Relating to Foreign Affiliates
4.1: Identifying a Foreign Affiliate .FA. vs. a Controlled Foreign Affiliate .CFA..
4.2: The Equity Percentage Test: Calculating the 1% and 10% thresholds.
4.3: Filing Deadlines: Navigating the shift to the 10-month post-year-end requirement.
Topic 5: T1134 – Detailed Reporting Requirements
5.1: Group Reporting: When can one form cover multiple affiliates?
5.2: Financial Statement Integration: Converting foreign GAAP to Canadian tax principles.
5.3: Reporting Surplus Accounts: Tracking exempt, taxable, and hybrid surplus.
Topic 6: Distinguishing Between T1134 and T1135
6.1: The "Exclusion Rule": Why a Foreign Affiliate .T1134. is generally not Specified Foreign Property .T1135.
6.2: Shared Data Points: Overlap in organizational structure reporting.
6.3: Common Pitfalls: Mistakenly filing the wrong form for foreign holding companies.
Topic 7: Advanced Concepts: FAPI and Reorganizations
7.1: Foreign Accrual Property Income .FAPI. basics and its impact on T1134.
7.2: Reporting changes during the year: Acquisitions, Dispositions, and Wind-ups.
7.3: Dormant Affiliates: When is a T1134 actually required for an inactive entity?
Topic 8: Best Practices and Correcting Errors
8.1: Documenting the "Due Diligence" defense for penalty relief.
8.2: Voluntary Disclosures Program .VDP.: Correcting past omissions.
8.3: Practitioner Checklist: Year-end data collection workflows for clients.






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