Form T1134 is the information return that Canadian residents and corporations must file annually for each foreign affiliate. A foreign affiliate is generally a non-resident corporation in which the Canadian taxpayer's equity interest, alone or together with related persons, is at least 10%, subject to specific tests.
The return captures investments in foreign business operations and supports the foreign-affiliate tax rules, including the rules that include certain passive income earned abroad in a Canadian shareholder's income. Failure to file can produce penalties and can extend the period in which the Canada Revenue Agency may reassess related foreign-affiliate income. T1134 complements Form T1135, which addresses a broader range of specified foreign property held by Canadian residents.