CRA Offshore Asset / T1135 Audit — Montreal CPA Firm Near You: Foreign Reporting Clean

A CRA Offshore Asset / T1135 Audit focuses on verifying foreign assets, income, and reporting obligations under Canada’s Foreign Income Verification Statement. When CRA identifies offshore holdings through international data exchanges (CRS/FATCA), it initiates a detailed audit to ensure compliance. Mackisen CPA Montreal provides expert representation to validate foreign disclosures, reconstruct missing data, and secure voluntary disclosure relief where appropriate.

Legal Foundation

Law: Income Tax Act s.233.3 (Foreign Income Verification Statement); s.162(7) (penalties for non-filing).
Jurisprudence: Black v. Canada (2014 FCA) — confirmed that penalties for late or incomplete T1135 forms are enforceable even without tax owing.

Why You Need a CPA for a T1135 or Offshore Asset Audit

CRA now cross-matches your bank and investment data with foreign jurisdictions through global information exchange networks (OECD CRS and U.S. FATCA). Any discrepancy between your return and these data feeds can result in penalties, audits, or criminal investigation. Mackisen CPA Montreal ensures that all foreign holdings—bank accounts, shares, trusts, and real estate—are accurately reported and supported by third-party evidence.

Learning insight: CRA doesn’t audit geography—it audits disclosure. A CPA ensures every border-crossing asset is documented properly.

What Mackisen CPA’s Offshore Audit Defense Includes

• Full reconstruction of foreign-asset listings using bank, brokerage, and property records.

• Preparation or correction of T1135, T1141, and T1142 disclosure forms.

• Review of foreign income, dividends, and capital gains for inclusion under ITA s.3.

• Coordination of Voluntary Disclosure Program (VDP) filings for unreported years.

• Defense and negotiation of penalty relief and interest cancellation under s.220(3.1).

Learning insight: Offshore reporting is not optional—it’s proof of integrity. CRA respects those who disclose, not those who delay.

Common Triggers for Offshore Asset Audits

• Foreign bank or brokerage data reported to CRA under CRS/FATCA.

• Real estate purchases abroad not reflected in income tax filings.

• Discrepancies between foreign tax slips and declared income.

• Unreported foreign rental or investment income.

• Failure to file T1135 for assets exceeding $100,000 in cost.

Mackisen CPA Montreal identifies and resolves these triggers before CRA issues a demand or penalty notice.

How Mackisen CPA Manages Offshore and T1135 Audits

1. Retrieves foreign-account statements and reconciles balances to reported totals.

2. Calculates foreign income and converts amounts using Bank of Canada exchange rates.

3. Validates reporting thresholds and classifications for Category 1 and 2 T1135 assets.

4. Communicates with CRA’s International Compliance Division to clarify data discrepancies.

5. Prepares full voluntary disclosure submissions to eliminate penalties when applicable.

Learning insight: CRA doesn’t care where your money sleeps—it cares where it’s declared. A CPA ensures transparency before CRA demands it.

Benefits of Professional Representation

• Eliminates or reduces T1135 penalties through timely disclosure.

• Provides legal defense and accurate reporting for all foreign holdings.

• Prevents escalation to criminal investigation under ITA s.239.

• Restores tax compliance and CRA trust for future filings.

• Ensures your foreign investments remain fully compliant under Canadian tax law.

Learning insight: The fastest way to close an offshore audit is to overdeliver on evidence. A CPA builds that credibility.

SEO Optimization and Learning Value

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Secondary Keywords: CRS FATCA audit, CRA offshore disclosure, voluntary disclosure program Montreal, Mackisen tax representation, foreign bank reporting Canada.

Learning insight: CRA shares data globally—but trusts those who report locally. Mackisen CPA bridges that gap between compliance and credibility.

Real Client Success

• A Montreal investor avoided $25,000 in T1135 penalties after Mackisen CPA demonstrated timely intent and voluntary correction.

• A family with property in France regularized eight years of offshore filings without penalty under the VDP.

• A consultant with dual U.S.-Canadian citizenship cleared a FATCA audit after Mackisen CPA reconciled IRS and CRA disclosures.

Why Mackisen CPA Montreal

Mackisen CPA Montreal specializes in complex offshore reporting and international compliance. Our CPA team’s combined tax-law, accounting, and audit expertise ensures your foreign assets remain both lawful and low-risk.

Learning insight: The CRA sees what you own worldwide—but only penalizes what you hide. A CPA keeps your honesty visible and your record clean.

Learning conclusion: Global transparency has replaced secrecy. Mackisen CPA Montreal ensures your international finances remain compliant, credible, and protected across every border.