Foreign Accrual Property Income, or FAPI for short, refers to a set of rules in the Income Tax Act (the “Act”) that deal with foreign (i.e. non-Canadian) corporations with Canadian-resident owners that earn passive income. Generally speaking, the passive income referred to in this article is in reference to income from property, rental/royalties/investment income, or taxable capital gains from the …
Foreign Reporting Requirements In the interest of enhancing compliance with tax laws, gathering information to verify compliance and to better target international tax evasion and aggressive avoidance, the government has established foreign reporting requirements. The foreign reporting requirements are found in sections 233.1 to 233.7 of the Income Tax Act. In certain conditions, the following must be reported: …
