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Foreign Bank Account well below the $100,000/- threshold for T1135 reporting.
But Foreign Bank Account Interest not shown in CRA returns for past 10 years.
Even if that foreign bank account interest Income is shown I am still below Basic Personal Exemption Amount in Canada. So no income tax is due.
Do I have to ReFILE my taxes or Change My Return or do T1-Adj for all the previous 10 years?
Do I have to do a VDP for all the previous years? It will be very complicated and expensive to do so!
Should I just IGNORE it or inform CRA about the amount for each year and let them do the adjustment and reassessment on their own.
Thanks for any help.
Hi Poonam,
Thanks for your question. Here’s a summary of your situation and recommended next steps:
Key Facts:
- Foreign bank account under $100,000 → No T1135 required
- Foreign interest not reported for 10 years
- No tax payable in any year (income below basic personal amount)
Do You Need to Refile or Use the VDP?
Technically yes—all worldwide income must be reported, even if no tax is owed. That said:
- Voluntary Disclosures Program (VDP) offers full protection but is time-consuming and may not be necessary for small, non-taxable amounts.
- T1-ADJ (adjustment requests) for all 10 years is a formal correction route but can be complex and costly.
- Sending a voluntary letter to CRA disclosing the interest amounts may be a low-effort, reasonable middle ground.
- Doing nothing carries some risk if CRA audits or asks questions later.
Recommendation:
Prepare a letter to CRA listing:
- The annual amounts of unreported interest
- Confirmation that no tax was owing
- A good-faith explanation and request for guidance on whether formal adjustments are needed
This approach balances compliance with practicality.