If you do not report foreign income, CRA can reassess your return, charge interest, and apply penalties. In serious cases, gross negligence penalties may apply.
Potential consequences
- Additional tax owed after reassessment.
- Arrears interest from original due date.
- Penalties for omissions or repeated failure.
- T1135 penalties if foreign asset reporting was required.
How to correct past errors
- Amend returns as soon as possible.
- Gather foreign slips, statements, and exchange rate records.
- Consider the Voluntary Disclosures Program for eligible situations.