FOREIGN ASSETS & INCOME
Whether you born in Canada or have recently moved here, if you have any investments portfolio (including foreign currencies) in a primary market which is outside Canada, with value in the excess of $100,000 in Canadian dollars then you must disclose that foreign assets in income tax return filling. Foreign assets includes any foreign bank accounts, estate property, stocks, company shares, and many more. Failure or improper reporting of foreign assets can consider to be tax envasion and hit you through penalty by CRA. This is very crucial and one that certainly you do not want to be charged.
Make sure that the disclosure of foreign assets does not relate to investments of Tax Free saving Accounts (TFSAs) or Registered Retirement Saving Plans (RRSPs). You can also exclude assets those are primary but for personal use and assets for running business.
Declaring foreign assets is to informing CRA that you hold foreign assets that worth more than $100,000 and has no major impact on your declaration, unless it generate income (rental, interest income). This income must be disclosed; where you may have little or no tax pay on this income after tax treaty.
To know if you are eligible for foreign assets tax file. Get in touch with our professional.