Frequently Asked Questions on Foreign Assets Reporting

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1. Who must report foreign assets?

   Canadian resident individuals, corporations, partnerships and trusts who have offshore investments totaling more than Canadian $100,000 in cost or book value (not the fair market value in the year of reporting) at any time during the taxation year must report these assets to CRA in their income tax return, regardless of whether these assets have generated any taxable income. Details of where the assets are held are generally not required. However, taxpayers must indicate the value by checking off the appropriate asset category box in the form. [This answer was added on April 10, 2009.]

2. What assets must be reported?

   They include: foreign bank account holdings; shares of Canadian corporations held outside Canada; shares of non-resident corporations held by the resident taxpayer or on deposit with a Canadian or foreign broker; real estate (excluding land and buildings for personal use) located outside Canada; precious metals, gold certificates and futures held outside Canada; interests in mutual funds which are organized in a foreign jurisdiction; patents, copyrights or trademarks held outside Canada; and other income-earning foreign properties. Interests in or rights to specified foreign property, Canadian property that is convertible to specified foreign property, and debts owed by non-residents such as government or corporate bonds, debentures, or mortgages must also be reported. In addition to the reporting requirement, all income generated by foreign properties must be reported and taxed accordingly. [This answer was added on April 10, 2009.]