Undeclared Income/Assets

Generally speaking, Canadians do not need to list their assets on a tax return. The most common exception exists where individuals have assets outside of Canada in excess of $100,000.00. There are several points to consider with respect to this declaration.

First, virtual assets may be considered outside of Canada for purposes of the Income Tax Act. Second, the fluctuating value (perhaps related to the asset itself or exchange rates) of such assets means that there may be some question as to whether or not a specific asset needs to be claimed on the tax return.  Finally, the penalties for not claiming such assets on tax returns can be quite extraordinary.

For all of these reasons, Canadians should be careful to report their foreign assets. Where an individual taxpayer does not report these assets, Drache Aptowitzer LLP lawyers may be able to remedy the situation to avoid the penalties which may otherwise be levied.

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