Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/10/2013

Canada - New information return for reporting foreign affiliates 

January 10:   The Canada Revenue Agency (CRA) released a new information return (Form T1134) concerning controlled and not-controlled foreign affiliates.

Form T1134, Information Return Relating To Controlled and Not-Controlled Foreign Affiliates (2011 and later taxation years), combines two previous forms—


  • Form T1134A, Information Return Relating to Foreign Affiliates that are not Controlled Foreign Affiliates
  • Form T1134B, Information Return Relating to Controlled Foreign Affiliates.

Due to changes to the definition of a "dormant" or "inactive" entity, certain foreign affiliates that were previously exempt may now have to file new Form T1134 if the historical cost of the reporting entity in the foreign affiliate is $100,000* or greater.


*$ = Canadian dollar


New Form T1134 is comprised of a summary form to consolidate information, and a separate supplement form for each foreign affiliate being reported (similar to Form T106, Information Return of Non-Arm's Length Transactions with Non-Residents).


New Form T1134 requires more information than Forms T1134A and T1134B, specifically for investments in controlled foreign affiliates.


Read a January 2013 report prepared by the KPMG member firm in Canada: CRA Consolidates Form T1134 Foreign Affiliate Reporting




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