Audit of the CRA - Foreign Income on Foreign Tax
credit
For 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
