T1135 vs T1134
One reports foreign property; the other reports foreign affiliates. A single foreign company can put you inside both, on different measures.
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One reports foreign property; the other reports foreign affiliates. A single foreign company can put you inside both, on different measures.
Side by side
| T1135 | T1134 | |
|---|---|---|
| What is reported | Specified foreign property | Foreign affiliates and their financial results |
| Measure | Cost amount, in aggregate | Ownership level, per affiliate |
| Who files | Individuals, corporations, trusts, partnerships | The same, where the affiliate test is met |
| Work involved | Assembling costs in Canadian dollars | Restating each affiliate's accounts on the required basis |
| Penalty | Per year, independent of tax | Per year and per affiliate, independent of tax |
Which one applies to you
Test the property statement on cost across everything you hold, then test the affiliate return on your ownership of any foreign corporation. A founder who kept a company abroad usually owes both and discovers the second one late.
Where to go from here
If that describes your position, the next step is a short call — not a form.
Reviewed against current guidance for the 2025 and 2026 filing seasons by Udit Gupta, Cross-Border Tax Expert, Legal Quotient Consultants. Written as general guidance, not as a recommendation for your situation. Talk it through with us before acting on it.
International tax accountant — what this page covers
Read this page for international tax accountant. It works through T1135 vs T1134 from the beginning — whether it applies to you at all, what has to be filed if it does, and what the engagement costs, priced up front.
What working with us on T1135 vs T1134 looks like
Late and missed years are ordinary work
An unfiled history is not a reason to wait longer. We assess what is still open and what relief the delay attracts before the first return goes in.
Residence is tested, not assumed
Where you are resident for treaty purposes is a question with a method. We work through it and write down the answer, with the facts it rests on.
The reporting penalties get named early
The heaviest exposure on a cross-border file is usually a disclosure form, not the tax. We identify which ones apply before a deadline turns into a penalty.
Every figure on a page is traceable
Where a rate or a threshold appears in our writing it names the tax year it belongs to. Where it could not be confirmed, the page describes the mechanism and quotes no number.
Cross-border tax case studies
Founder who kept an operating company abroad after emigrating
The client moved to Canada and left the operating company in the country of origin, filing personal returns here for several years without either foreign reporting return. We mapped the shareholding from the incorporation documents forward, established the cost amount of the shares in Canadian dollars, and tested the affiliate question separately on the ownership level. The engagement produced a filed set of property statements and affiliate returns for the open years, with a working paper recording how each cost figure was derived and which ownership test was met in which year.
Property statements filed for years while the affiliate return was missed
A long-standing filer had reported foreign property correctly but had never looked at the affiliate question, because the adviser who prepared the statements treated the shares as one more line of property. The review started from the corporate register rather than the investment reporting. We restated the foreign company's accounts on the required basis and prepared the outstanding affiliate returns alongside the statements already filed, so the two sets agreed on the same holding. The engagement produced a matched filing history and a note explaining the difference in measure to the client.
Canadian corporation reporting a wholly owned foreign subsidiary
A Canadian company had acquired a subsidiary abroad and continued to consolidate it for accounting purposes only. The reporting question was different: the affiliate return needs each affiliate's results restated on the basis the return requires, not the group's accounting presentation. We rebuilt the subsidiary's figures from its own statutory accounts, documented the currency treatment, and filed the affiliate return for the year of acquisition and each year since. The engagement produced a repeatable working file, so the following year's return starts from a schedule rather than a reconstruction.
Rebuilding cost amounts for an inherited foreign portfolio
An inherited portfolio held abroad had been reported inconsistently because nobody could establish what the holdings had cost. The property statement runs on cost amount in Canadian dollars, so the work was documentary rather than analytical. We traced the estate records, fixed the acquisition point for each holding, converted each figure, and set out the basis used where the record was incomplete. The engagement produced a filed statement supported by a schedule showing the source for every cost included, which is what makes the position defensible if the record is ever questioned.
Family trust holding a foreign interest that nobody had tested
The individual beneficiaries had been filing their own foreign property statements while the interest itself sat inside a family trust. The obligation belonged to the trust. We established which entity held what on each relevant date, withdrew the assumption that the personal filings covered the position, and prepared the trust's own returns for the open years. The engagement produced a filed record in the correct filer's name and a short memorandum on who files what going forward, so the beneficiaries' returns and the trust's no longer overlap or contradict each other.
Ownership review that concluded no affiliate return was due
A client had been told by a previous adviser that a small shareholding in a foreign company put them into the affiliate return, and wanted the years filed. We tested the ownership level against the affiliate measure before preparing anything, working from the share register and the successive rounds of issue that had diluted the holding. The conclusion was that the affiliate test was not met in any of the years, while the property statement was due throughout. The engagement produced the outstanding property statements and a written position on why the affiliate return was not filed.
A Home Kept in Canada After the Move Abroad
A dwelling left available is the tie the CRA weighs most heavily, and its treatment differs depending on whether it is rented at arm's length. The file settles the residence position first and the rental reporting second.
Read how this one runsFirst Canadian Return After Arriving Mid-Year
The arrival date splits the year and sets the cost base of what you brought with you. Getting that date and those values right is what determines whether a later sale is taxed on the whole gain or only on the part that accrued after landing.
Read how this one runsAll case studies — every published engagement in one place.
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