I finished completing the annual T1134 for an individual who owns a substantial (but non controlling) interest in a foreign affiliate (offshore heavy equipment manufacturer). The deadline keeps shrinking on these T1134’s … from 15 months a few years ago… to 12 months in 2020… and now 9 months for years 2021 and moving forward. For an individual this filing is now due by the end of September.
I notice that I can Efile the T1134 but my submission would normally include a set of financial statements and organizational chart from the foreign affiliate, which I don’t think can be included with the efiled transmission.
I suppose my question would be is the Efiling of the T1134 form only available if the client does not have any of the required supporting documents to submit with the form?
I’m almost inclined to Efile the T1134 and simply mail a copy of the form along with the financial statements to Winnipeg. At least I will have confirmation it is filed on time.
Also… not that it matters a whole lot but on the T1134 in the T1 module next to the signature there is a field that says Position, title, officer’s rank. Where exactly does the software pick the data from this field up from? It is blank but no matter what position I type in that field it shows up as an over-ride. If I F2 the field it goes blank… so presumably there is somewhere else in the T1 return the software is looking to for the answer to this question.
As far as financial statements go, T1 module does not have a way to transmit them along with the T1134 transmission or afterwards (this latter functionality is in T2 but not offered in T1 yet). So, you will need to mail them and as long as T1134 return is electronically filed on time, the date that the financial statements is received by the CRA shouldn’t cause any late filing penalties. But, I will ask the CRA any way (although it sounds like you are in a rush so by the time I receive a reply, it may not be helpful to you).
As far as the signature field goes, the field calcs to blank so it is not coming from any field. This is because the field isn’t really applicable to individuals (but it would be for a T2). For your T1134, are you expecting this field to have data just so I can understand?
There isn’t as much of a rush as I thought there was. I thought that for tax years 2021 and going forward the T1134 was due 9 months after the reporting entity’s year end, but I see it is actually 10 months after the reporting entity’s year end. For an individual reporting entity this would mean October 31st… so I’m good for a few more weeks.
With regard to the “position” field next to the signature I wasn’t really expecting anything. I suppose I thought I would be able to type something in there like “Individual” without it showing up as an over-ridden field. The fact that it showed up as an over-ride in red regardless of what I entered suggested to me that I should be entering that somewhere else in the software. Does that make sense? I might just leave it blank or type INDIVIDUAL in that field and sign off on the over-ride.
Thanks for checking with the CRA. Whether or not they reply back to you I will likely Efile the T1134 and send the supporting date (Financial Statements & Organizational Chart) separately via Canada Post. It is much simpler to include an organizational chart than to answer the ridiculous questions in that section.
As long as T1134 is submitted on time, it should be fine but they do suggest that “complete” documents be submitted as soon as possible.
Here is the CRA response:
"As long as the T1134 is on time then no penalties will be assessed on late F/S by the system, however the F/S should be submitted ASAP as penalty can be levied by auditors if they find the F/S are missing or late.
Administrative penalties under subsections 162(5) (for missing or incomplete filing) and 162(7) (failure to file on time), along with the gross negligence penalties under subsections 163(2.4), 162(10) and 162(10.1), apply equally to the T1134 Summary (on a standalone basis) as it would apply to information provided on the T1134 supplements. This is because any information requested on any part of the form constitute “prescribed information”, thus subject to the penalty provisions. As such, the administrative penalties can apply to a failure to a T1134 Summary (if that is the only part of the form that a reporting entity / taxpayer is required to file), each supplement and its required F/S."
I just updated to version 12.2.54367.0 and notice in the release notes that “SERs for individuals is available in TaxCycle Forms”. I don’t have a subscription to TaxCycle Forms and it doesn’t seem to be available as a trial. The release notes don’t mention much about SERs other than in the heading of the release webpage.
Does the latest version of TaxCycle Forms contain the functionality to transmit the foreign entity financial statements for a T1134? Not sure why SERs wouldn’t be included in the T1 module since that is where you complete the T1134 for an individual who is required to file.