Hi everyone,
I’m facing a massive $2,500+ fine for late filing of Form T1135 in 2021, which requires disclosure of specified foreign property purchased for a total cost amount of more than $100,000.
I also didn’t declare all my worldwide income in the 2021 year, which mainly comprises freelance income from my UK clients, rent from UK property, dividends from UK stocks etc.
I hate blaming other people, but the main reason is that I had no idea I needed to do this. My Canadian partner referred me to an idiot accountant who for some reason only told me that I needed to disclose the UK business income, but not the other UK income (dividends, rent etc.) despite me being upfront with all my tax affairs/UK assets. So in my 2021 return, he put only my Canadian income and UK business income - not all my freaking income.
In the process of trying to fix this up by amending my tax return, I have now discovered the need to fill Form T1135. I calculated that my cost amount for my specified foreign assets in 2021 was about C$120,000. It certainly worries me when CRA threaten you with wording like “there are substantial penalties for failing to complete and file Form T1135 accurately and by the due date.”
I paid all my UK taxes on my UK income to the very last cent – so I haven’t evaded tax, I just didn’t know that I needed to declare all of it to Canada partly due to poor advice.
Any ideas on how to deal with this?
In terms of dates, I landed in Canada in October 2020 on an IEC visa and I don’t have PR yet.
I’m facing a massive $2,500+ fine for late filing of Form T1135 in 2021, which requires disclosure of specified foreign property purchased for a total cost amount of more than $100,000.
I also didn’t declare all my worldwide income in the 2021 year, which mainly comprises freelance income from my UK clients, rent from UK property, dividends from UK stocks etc.
I hate blaming other people, but the main reason is that I had no idea I needed to do this. My Canadian partner referred me to an idiot accountant who for some reason only told me that I needed to disclose the UK business income, but not the other UK income (dividends, rent etc.) despite me being upfront with all my tax affairs/UK assets. So in my 2021 return, he put only my Canadian income and UK business income - not all my freaking income.
In the process of trying to fix this up by amending my tax return, I have now discovered the need to fill Form T1135. I calculated that my cost amount for my specified foreign assets in 2021 was about C$120,000. It certainly worries me when CRA threaten you with wording like “there are substantial penalties for failing to complete and file Form T1135 accurately and by the due date.”
I paid all my UK taxes on my UK income to the very last cent – so I haven’t evaded tax, I just didn’t know that I needed to declare all of it to Canada partly due to poor advice.
Any ideas on how to deal with this?
In terms of dates, I landed in Canada in October 2020 on an IEC visa and I don’t have PR yet.