From: AlanBaggett@volcanomail.com   
      
   Requirements for Canadians with Offshore Property & Income : CRA SOTW   
      
   VANCOUVER, BRITISH COLUMBIA--(Marketwired) - Parliamentary Secretary Cathy   
   McLeod was in Vancouver to announce the launch of a strengthened Foreign   
   Income Verification Statement (Form T1135), one of the Economic Action Plan   
   2013 measures to crack down on    
   international tax evasion and aggressive tax avoidance. Mrs. McLeod met with   
   members of Certified General Accountants (CGA) Canada to discuss taxation   
   issues, including how best to combat international tax evasion and aggressive   
   tax avoidance.   
      
   "Our Government is committed to combating tax evasion and getting tough on tax   
   cheats. Since 2006, we have introduced over 75 measures to improve the   
   integrity of the tax system," said Parliamentary Secretary McLeod. "The   
   strengthened reporting    
   requirements are just one example of the actions being taken by our Government   
   to crack down on tax cheats. These measures are great news for hardworking   
   Canadians who pay their fair share and bad news for those who may seek to   
   cheat the system."   
      
   Starting with the 2013 taxation year, Canadians who hold foreign property with   
   a cost of over $100,000 will be required to provide additional information to   
   the CRA. The criteria for those who must file a Foreign Income Verification   
   Form (T1135) has not    
   changed; however, the new form has been revised to include more detailed   
   information on each specified foreign property.    
      
   Increased reporting requirements include:   
    the name of the specific foreign institution or other entity holding funds   
   outside Canada;    
    the specific country to which the foreign property relates; and    
    the income generated from the foreign property.   
      
   The CRA will use the additional information to ensure all taxpayers comply   
   with Canadian tax laws, through activities including education and audit.   
   Failure to report income from domestic or foreign sources is illegal, and   
   Canadians should know that the    
   CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax   
   avoidance can lead to significant taxes, interest and penalties.   
      
   These measures will build on the recent commitments made by Prime Minister   
   Stephen Harper at the G-8 Lough Erne Summit in Northern Ireland. The G-8   
   declaration and the Harper Government's Action Plan on Transparency of   
   Corporations and Trusts will uphold    
   a high level of transparency.   
      
   Economic Action Plan 2013 also proposes to extend the reassessment period for   
   a tax year by three years if a taxpayer has failed to report income from a   
   foreign property on their income tax return and Foreign Income Verification   
   Form (T1135) was not    
   filed, late-filed, or included incorrect or incomplete information concerning   
   a foreign property.    
      
   In addition to the new filing requirements, Economic Action Plan 2013 proposed   
   other strong new measures to combat international tax evasion and aggressive   
   tax avoidance. These include:   
      
    the new Stop International Tax Evasion Program;    
    the mandatory reporting of international electronic funds transfers over   
   $10,000 to the CRA; and,    
    streamlining the judicial process that provides the CRA authorization to   
   obtain information from third parties such as banks.   
      
   The Harper Government also recently announced the creation of a dedicated team   
   to implement these measures and a $30 million investment to target   
   international tax evasion and aggressive tax avoidance.   
   "We are pleased to see the Government taking action on this important issue.   
   Increased reporting requirements of large offshore assets will help to ensure   
   that all Canadians are operating on a level playing field when it comes to   
   their taxes," said    
   Carole Presseault, Vice President of Government and Regulatory Affairs at CGA   
   Canada. "Our members support the fight against tax evasion, as it hurts all   
   Canadians by reducing government revenue that other law abiding taxpayers are   
   required to make up,    
   and providing an unfair advantage to those seeking to cheat the system."   
   -----------------------------------------------------------    
   Miss a Tax Tale Miss a lot!    
   Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com    
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