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JAIKS BLOG

JAIKS BLOG

I am pleased to provide a variety of resources on accounting, taxation, and other related subjects that I think you will find helpful to both individuals and businesses.
Browse through the Quick Tools resource menu then, if you have a question that isn’t answered, I can help to clarify your situation. Simply contact me by email or give me a call at 778-792-3282. I would be happy to meet with you for a free, no-obligation consultation to discuss your unique situation.

Foreign Asset Reporting and the Extreme Costs of Non-Compliance

Unfortunately the penalties for not completing this form are extreme as one large Canadian Corporation group found recently when a judge ruled against the Asper group of companies. Penalties for non filing were enforced even though the company reported all the income from these investments properly.

So what is this form and why is it required? As has been reported in the press both here in Canada and south of the border, governments are concerned with offshore money escaping taxes in the home country. As a resident of Canada and most other western countries, you are taxed on world wide income. This form is simply to track those assets offshore which have the potential to earn income and otherwise escape tax if not reported.

Canada Revenue Agency requires Canadian resident taxpayers to report specified foreign property with an aggregate cost in excess of $100,000 at any time during the year.

Specified properties include the following:

  • Foreign bank accounts
  • Interest in foreign trusts (mutual funds)
  • Foreign bonds, treasury bills and other debt instruments
  • Shares in foreign corporations
  • Real estate
  • Other income earning property

Excluded properties include:

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