CRA Offshore Asset / T1135 Audit — Montreal CPA Firm Near You: Global Reporting Defense

A CRA Offshore Asset or T1135 Audit is a specialized compliance review that focuses on foreign assets, accounts, or investments worth over $100,000 CAD held by Canadian residents. The Canada Revenue Agency uses global data-sharing agreements under FATCA (U.S.) and the OECD Common Reporting Standard (CRS) to detect undeclared offshore assets.
Mackisen CPA Montreal helps clients respond to CRA’s T1135 inquiries, file missing forms, and defend against penalties — ensuring your global financial disclosure is accurate, compliant, and penalty-free.

Legal Foundation

Law: Income Tax Act s.233.3 (foreign reporting requirements); s.162(7) and s.162(10.1) (penalties for non-filing or false filing); s.231.6 (information request authority).
Jurisprudence: Black v. Canada (2014 FCA) — upheld CRA’s right to impose $2,500 annual penalties per missed T1135, even where no tax was owing.

Learning insight: CRA doesn’t penalize foreign wealth — it penalizes hidden reporting. Mackisen CPA ensures your global compliance is fully transparent.

Why CRA Targets Offshore Assets

CRA uses automatic data-sharing to identify Canadian residents with overseas holdings. Triggers for an offshore audit include:

• Bank or investment accounts reported by foreign financial institutions under FATCA/CRS.

• Property ownership abroad exceeding $100,000 CAD in cost.

• Unreported rental income or capital gains from foreign property.

• Large inbound wire transfers.

• Missing or late T1135 filings.

Learning insight: CRA already knows your foreign balances — your compliance confirms their accuracy. Mackisen CPA ensures that confirmation is complete and correct.

CRA Offshore Audit Process

1. Audit Notice: CRA requests details of foreign accounts, assets, and T1135 filings.

2. Information Gathering: CRA matches your disclosures with FATCA/CRS data.

3. Residency and Ownership Review: CRA determines whether you are a factual or deemed resident and whether you control the assets.

4. Penalty Assessment: CRA applies penalties for missing, inaccurate, or incomplete disclosures.

5. Resolution: Mackisen CPA corrects filings and negotiates for penalty relief through the Voluntary Disclosure Program (VDP) or taxpayer-relief channels.

Learning insight: CRA uses global data — but you control your narrative. Mackisen CPA ensures it’s a story of compliance, not concealment.

Mackisen CPA’s Offshore Audit Defense Framework

1. Asset Reconciliation: Compile foreign bank, brokerage, and real-estate records for the full 10-year audit window.

2. Residency Status Review: Determine the years you were required to file based on Canadian residency rules.

3. T1135 Reconstruction: Recreate missing or inaccurate filings using correct currency conversion rates.

4. Penalty Mitigation: Apply for penalty cancellation or reduction under CRA’s Taxpayer Relief Program.

5. Legal Coordination: Collaborate with international tax lawyers when ownership or residency is disputed.

Learning insight: CRA’s penalty system rewards honesty. Mackisen CPA ensures disclosure is timely, complete, and credible.

Common CRA Audit Findings in Offshore Reviews

• Late or unfiled T1135 forms.

• Incorrect cost or fair-market value calculations.

• Misclassified holdings (e.g., mutual funds, pensions, or partnerships).

• Failure to report joint accounts or spousal ownership.

• Unreported income from foreign investments or rentals.

Mackisen CPA proactively corrects these errors before CRA issues reassessments or penalties.

Learning insight: Offshore compliance isn’t about volume — it’s about verification. Mackisen CPA verifies every number to CRA’s satisfaction.

Real-World Case Studies

• A Montréal investor avoided $22,500 in penalties after Mackisen CPA retroactively filed nine years of missing T1135 forms with proper valuations.

• A Canadian resident with U.S. property resolved a $48,000 CRA assessment after our team reconstructed missing rental income and applied foreign-tax credits.

• A business owner with European investments avoided prosecution through Mackisen CPA’s successful Voluntary Disclosure submission.

Learning insight: CRA penalizes omission — Mackisen CPA rewards precision.

SEO Optimization and Educational Value

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Learning insight: Global compliance and digital authority share the same value — transparency backed by facts. Mackisen CPA provides both.

Why Mackisen CPA Montreal

With 35 years of cross-border audit and international tax experience, Mackisen CPA Montreal helps clients navigate CRA and Revenu Québec’s complex foreign reporting rules. Our bilingual CPAs and international tax specialists collaborate with global institutions to ensure your compliance and minimize penalties.

Learning insight: CRA measures transparency through disclosure — Mackisen CPA makes disclosure a shield, not a liability.

Call to Action

If CRA has contacted you about offshore accounts or unfiled T1135 forms, or if you suspect incomplete reporting, act immediately.
Contact Mackisen CPA Montreal for confidential offshore-audit defense and penalty-relief representation.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: CRA Offshore Asset Audits test disclosure, not wealth. Mackisen CPA Montreal ensures your global financial picture is accurate, compliant, and audit-ready — protecting both your reputation and your peace of mind.