Canadian corporations, individuals, trusts, or partnerships with foreign affiliates must file Form T1134 with the Canada Revenue Agency (CRA). This mandatory disclosure form ensures transparency in foreign investments and business activities, helping the CRA track offshore tax compliance.
At Lepore & Company, we specialize in foreign affiliate reporting, ensuring our clients meet their T1134 filing obligations while minimizing tax risks and penalties.
What is a Foreign Affiliate?
A foreign affiliate is a foreign corporation in which a Canadian taxpayer holds at least 1% of shares and, together with related parties, owns at least 10% of the voting shares. This includes subsidiaries, joint ventures, and foreign business investments.
The CRA requires detailed reporting on all foreign affiliates, including financial statements, ownership structures, and tax information.
Who Needs to File T1134?
You must file T1134 if you are:
- A Canadian corporation, individual, trust, or partnership that meets the foreign affiliate ownership threshold.
- A taxpayer with an interest in a controlled foreign affiliate (CFA), meaning you and related entities control more than 50% of voting shares.
- Engaged in international business operations or holding investments in foreign entities.
Failure to file on time can result in significant penalties, making compliance crucial.
What Information is Required in T1134?
The T1134 form consists of a summary and supplementary information that includes:
- 📌 Corporate structure & ownership details of foreign affiliates.
- 📌 Financial statements of each foreign affiliate.
- 📌 Income earned, including active business income and passive income.
- 📌 Foreign tax payments & interactions with Canadian tax laws.
- 📌 Any changes in ownership or operational control.
The CRA uses this information to assess tax liabilities and ensure compliance with foreign income rules.
Our T1134 Filing Services
Foreign Affiliate Compliance Review
- Assess if your foreign holdings meet CRA’s reporting requirements.
- Identify controlled foreign affiliates (CFAs) and their tax obligations.
- Ensure accurate classification of active vs. passive income.
T1134 Preparation & Filing
- 📌 Gather and organize financial details of foreign affiliates.
- 📌 Prepare and submit T1134 forms accurately and on time.
- 📌 Ensure compliance with CRA’s latest reporting requirements.
Foreign Tax Credit & Tax Treaty Optimization
- Leverage international tax treaties to avoid double taxation.
- Optimize foreign tax credits to reduce overall tax liability.
- Advise on repatriation of earnings in a tax-efficient manner.
Audit Support & CRA Inquiries
- 📌 Respond to CRA audits and information requests related to T1134.
- 📌 Prepare documentation to defend compliance and tax positions.
- 📌 Assist with voluntary disclosures for past non-compliance.
Why Choose Lepore & Company for T1134 Filing?
- ✅ Expertise in Cross-Border Tax Compliance – We simplify complex foreign affiliate reporting.
- ✅ Minimized Penalties & Risk – Ensuring timely and accurate filings to avoid CRA fines.
- ✅ Tax Optimization Strategies – Helping businesses reduce tax exposure on foreign earnings.
- ✅ CRA Audit Representation – Supporting you in case of CRA inquiries or audits.
Stay Compliant with T1134 Filing – Contact Us Today!
Filing T1134 for foreign affiliates is a critical part of Canadian tax compliance. At Lepore & Company, we ensure that your international business operations meet CRA regulations while optimizing tax outcomes.
Get in touch today for expert T1134 filing assistance!