In T1135 (https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t1135/t1135-22e.pdf), Part B 1 “maximum fund held during the year” is not defined in the “instructions part” but “the maximum cost amount” was defined as “the maximum month-end cost amount”
My difficulty is that many of my home country bank statement date is not month-end but usually in the middle of a calendar month or even the first week of a calendar month.
Is if ok if I use the value shown in the monthly bank statements for finding out the maximum cost amount, regardless whether the statement date is at the month-end or Mid-month as long as the statements of a particular bank is released regularly?
Similarly, can I use the value shown in my December statements to be the “ Funds held at year-end” even though it’s not exactly on 31/12?
Thanks in advance!
Could you not check the next month’s bank statement to get the correct month-end amount?
Yes but I have too many accounts as even one single bank can have more than 10 accounts which make it quite difficult to get the right one
I also notice “maximum fund” is not defined in the form and the value only reflect asset while not taxable so I wonder if the rules is that strict and need so much effort for a value that won’t affect the taxable income.
I doubt that you have to figure out the maximum balance for each day of the year, to the penny. It’s not like CRA can verify those amounts without going through a lot of international red tape. But, you should make an effort to provide a reasonable, verifiable value. If you have bank statements, use the value that shows the highest balance. If CRA asks for supporting documents, you can provide a copy of that statement which matches the number you provided.
If you’re wondering why we have to give that information at all, here’s CRA’s answer:
The objectives of this reporting requirement are:
- to enhance compliance with tax laws that require reporting of foreign-source income
- to increase taxpayers’ awareness of these laws
- to provide information to the CRA for the purpose of verifying taxpayers’ compliance with these laws
- to better target international tax evasion and aggressive tax avoidance
Thanks for reply. Yes I also think it makes more sense to provide a figure that can easily match with the monthly statement balance instead of doing a lot of counting just to make it absolutely month-end figures which will easily get wrong
I am struggling about the year-end figure, whether I should use the same approach
Download the bank accounts to Excel for the year Jan 1 - Dec 31. One formula to give you the max value and you have the Dec 31 value at hand.
Takes about 5 minutes per bank account
Thanks for reply. I wish I could do that but the format of some is not quite compatible to convert to csv and some are even paper statements