The Canada Revenue Agency (“CRA”) has responded to the concerns raised against the new T1135 reporting requirements and announced on February 26, 2014 transitional relief for the 2013 taxation year only. Under the CRA transitional relief, a taxpayer who held specified foreign property in an account with a Canadian registered securities dealer may now report the combined value of all such property at the end of the tax year, rather than reporting the details of each property. Although the definition of Canadian registered securities dealer includes majority of Canadian brokers, all taxpayers that hold securities with foreign brokers will not be provided with such a relief and are still required to report the details of their specific foreign property.

This announcement provides taxpayers who hold their investment with a Canadian broker a choice, to either use the transitional reporting or use the check the box method for the 2013 taxation year. The transitional reporting method would require the taxpayer to report the total of their specified foreign property on the T1135. The check the box method would exclude a specified foreign property from being disclosed if it has been reported on a T3 or T5 but would require details of the specific foreign property not reported on the T3 or T5.

In addition, the CRA is also extending the filing deadline for the 2013 tax year to July 31, 2014, for all taxpayers.