Yes, the $25 per day failing-to-file penalty for up to 100 days (minimum $100 and maximum $2,500) is hefty. See CRA: Table of penalties for the other penalties that also apply.

There is a balancing between taxpayer privacy and tax enforcement. The T1135 form is only required from taxpayers that have sunk $100,000 or more into specified foreign property. Most taxpayers have not done that. So, there is no need for CRA to receive detailed private info about the foreign shares in most people's brokerage accounts.

That foreign holdings or foreign income report from investment dealers is to help clients complete their T1135. The report is not an official tax form and is not sent to CRA.

Scotia iTRADE has this on the last page of one of my reports:

This report has been provided to you as a courtesy service, for informational purposes only and not for official tax purposes. The financial data contained in this report has not been sent or reported to the Canada Revenue Agency and is provided on a reasonable efforts basis using files provided to us by third parties. …

AltaRed, I will visit my local MP if I am charged. $25.00 / day for late filing for something they already know, for I think most of us does not make sense.
Thank you for your replies. This is a great community.

When you file electronically, you will receive a confirmation number indicating that the Canada Revenue Agency (CRA) has received your form. Keep this number for your records.

CRA is aware of all foreign investments I hold with Canadian brokers as the specifics are detailed on the T1135 document. This form would be appropriate to capture assets that are held in entities outside of Canada or are not visible to CRA. I feel that Canadian's with foreign holdings at a Canadian broker are being subjected to unnecessary grief. A few of us probably hold some US or foreign stocks denominated in US funds in a Canadian brokerage account. I do not know anyone with foreign real property or who receives foreign rental income.

At a minimum, I cannot understand why CRA cannot confirm if they have receipt of the T1135 document that I mailed before April 30th. It will be costly for me if they claim they never received the mailed document. I think there should be some sort of exclusion for information CRA already has.

Perhaps I am missing something.

One needs to file a T1135 because CRA does not necessarily know all of a taxpayer's foreign assets. CRA wouldn't know if a taxpayer has a foreign domiciled bank account that might pay interest, or a foreign brokerage account, or real property that is rented out.

I am advised the penalties for not submitting the form is $25.00 / day to a maximum of $2,500. CRA advised their program does not indicate if the form was received and I could not get an answer asking if CRA notifies taxpayers if they do not have this information. I was also advised that I could have asked for confirmation if requested in writing with a self addressed return envelope. How could this be done if filed electronically? I was not told this in April when I called and mailed the form to them just in case it was not received electronically.

Regardless of how this turns out, the process appears to be very unfair to taxpayers who want to follow the rules. I wonder about why this is even a requirement for people who hold foreign investments with a Canadian broker because CRA already has this information.

Does anyone here know if Studio Tax requires users to file T1135 separately, even if it was included with the regular filing? I am awaiting a reply from Studio Tax.

So he didn't even have any interest in doing 'Great Good', by willing his large wealth to deserving charities ... Sad

Maybe there's a hint in there somewhere, as to Why he lived his life All Alone.

Dean

Of course who is going to look after such loners if and when they are unable to is a whole other issue that they might need to figure out.

NokomisStation said
I have for many many years/decades always short paid my tax liability by $2.00 or slightly less and indeed the CRA makes an adjustment to make this tiny amount disappear.

I have often thought about doing the same, to see what would happen. Glad to see that you were actually successful in implementation. I never want to give CRA a single cent more than necessary. I was always more worried about the potential repercussions, than the minor $2 reduction. For example, I was worried that if I made an error or accidental omission on my return and more tax was assessed than I actually paid, then it might trigger some kind of penalty far greater than the miniscule $2 savings. Your anecdote gives me some reassurance of using the ploy in the future.