Is Filing Form T1134 Mandatory?
Form T1134, Information Return of Controlled and Not-Controlled Foreign Affiliates,
must be filed by the following taxpayers:
-
Canadian resident taxpayers whose foreign corporation is a
foreign affiliate (FA) or a
controlled foreign affiliate (CFA) at any time during the year;
In addition, the following situations are relevant when determining filing obligations:
-
Where a non-resident partner’s share of the partnership’s income or loss for the year
is less than 90% of the total income or loss allocated to the other partners; -
Where the foreign corporation is carrying on business jointly with a Canadian resident,
that corporation may be considered an FA or CFA in that year.
Change 1: Filing Deadline
The T1134 information return must be filed within
10 months
after the end of the taxpayer’s taxation year.
-
Note: For 2021 and subsequent taxation years, Form T1134 must be filed within 10 months
after the year-end, and you must use the latest version of Form T1134 when filing.
As a transitional measure:
-
For the 2020 taxation year, Form T1134 must be filed within
12 months of the year-end. -
For the 2019 and earlier taxation years, Form T1134 must be filed within
15 months of the year-end.
For taxation years prior to 2021, the version of Form T1134 released on November 28, 2017 should be used.
Change 2: Reporting Requirements for “Non-Operating” Foreign Corporations
Where a foreign corporation is considered to be in a
“non-operating” status, certain reporting relief for foreign company assets may apply.
A foreign corporation is considered “non-operating” if it meets all of the following conditions:
-
The corporation’s total revenue for the year (including property income)
does not exceed CAD $100,000; and -
At no time during the year does the fair market value of its assets
exceed CAD $1,000,000.
When completing Form T1134, the definition of “total revenue” refers to
all amounts received in the year, not just taxable income.
This includes non-income amounts such as loans.
