You have to declare annually your world wide income and capital gains and file annual income tax returns.
- You have to report annually details of your foreign assets -other than personal use assets -if their total cost or their market value at the date when you took up Canadian residency exceed $100,000 any time during the year. See form T1135 and its guide.
- You have to report details of foreign corporations which you or together with related persons have 10% or more ownership. There may be other situations which requires you to file the details of foreign corporations which you have an interest in. See form T1134 and its guide.
- You should also be mindful of income generated in a foreign corporation which you have control. Control for this purpose is defined differently from its common understanding. Control includes control with a related group or even control with three other Canadian residents. You may have to include this income in your personal taxable income. This kind of income is called foreign accrued property income or FAPI and it generally arises if you have income from activities that are considered not-active as defined by the Income Tax Act for this purpose. There are other situations which FAPI income may have to be declared.
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