Audit of the CRA - Foreign Income on Foreign Tax creditFor your information, it appears that the CRA recently reassessed the return of certain taxpayers who had claimed the foreign tax credit.
The credit was refused on the grounds that the CRA does not have the information on the T3 slip regarding the tax withheld for each country.
The breakdown of the tax deducted for each country is not required on the slip. However, the companies administering the trusts must be able to provide this information upon request.
In the meantime, it would appear that if the taxpayer makes a "Notice of Objection" the CRA would have re-issued the foreign tax credit.
It should be noted that our software indicates the country covered on T2209 as "United States" if no information is entered on the T3 slip.
If customers contact us for this purpose, it would be advisable to suggest that they contact the issuer of the slip to request the required information and that the client also submit a "Notice of Objection" to the CRA.
Please refer to the link below for a copy of the form:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t400a.html
ID: 20191114090420MA.xml
Webpage: KPA360-20191114090420MA.htm