CRA Penalties on Newcomers for Late Foreign Property Reporting: T1135 Compliance Tips

Summary

According to a July 8, 2026 report by the Financial Post, the Canada Revenue Agency is actively penalizing new immigrants who fail to report foreign property on time, with late-filing penalties of $25 per day up to a maximum of $2,500 plus arrears interest. Form T1135 (Foreign Income Verification Statement) requires Canadian tax residents to report specified foreign property with a total cost exceeding CAD $100,000. Many newcomers are unaware of this obligation — they may believe foreign assets are not reportable to CRA, or mistakenly think no disclosure is needed if the assets generate no income. However, late or missed filings trigger automatic penalties with limited relief for first-time offenders.

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Our Take

The T1135 filing requirement is one of the most frequently overlooked compliance obligations for newcomers to Canada. Immigrants who become Canadian tax residents must file this form alongside their tax return if the total cost of specified foreign assets — including those in their home country — exceeds CAD $100,000. Importantly, the threshold is based on cost, not market value, and the reporting requirement extends beyond income-generating investments to include bank accounts, non-personal-use real estate, and shares in foreign corporations. The $25/day late-filing penalty (max $2,500) plus interest compounds quickly, and CRA does not automatically waive it for first-time filers. Newcomers should consult a CPA before their first Canadian filing to determine whether a T1135 is required and avoid these costly penalties.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.