GIC reporting in T 1161 and T 1243 ?

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goldstone
Posts: 32
Joined: Wed May 29, 2019 11:27 am

GIC reporting in T 1161 and T 1243 ?

Post by goldstone »

In the year they leave, emigrants have to complete forms T 1161 and T1243 for deemed disposition purposes.
The instructions to the forms say that cash does not have to be reported. But the instructions do not mention whether GICs and term deposits are viewed as cash. Of course, there can be no capital gain or loss for such instruments so there seems little point in requiring them to be reported.

Does anyone know if there is a definitive statement somewhere from CRA which would confirm that GICs and Term deposits do not have to be reported on T1161 and T1243 ?

Thanks for any advice.
nelsona
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Re: GIC reporting in T 1161 and T 1243 ?

Post by nelsona »

GICs and term deposits are cash.
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goldstone
Posts: 32
Joined: Wed May 29, 2019 11:27 am

Re: GIC reporting in T 1161 and T 1243 ?

Post by goldstone »

I agree that they are essentially cash and should be treated as such.

But, how do we know that CRA agree with this for GICs ? The T1161 instructions say to exclude ' cash, including bank deposits ' which isn't quite broad enough to exclude GICs........
nelsona
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Re: GIC reporting in T 1161 and T 1243 ?

Post by nelsona »

You do realize that this form has been around a long time and we have all used it?

I guess you could call CRA telephlunkies and see what answer they muster up.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
goldstone
Posts: 32
Joined: Wed May 29, 2019 11:27 am

Re: GIC reporting in T 1161 and T 1243 ?

Post by goldstone »

Hah !
I guess I could spend hours on hold and then speak with a ' telephlunkie' who would probably know less about this topic than I already do. And whose advice I cannot rely on because I wouldn't be able to get it in writing and the CRA black hole would simply ignore my protestations if I maintained that they had given me such advice.

These are very straightforward forms and it would be much easier just to report the GICs than try to get a sensible response from CRA if they haven't opined publicly.

However, I did manage to find this......https://taxinterpretations.com/cra/seve ... -0469691e5

In this document, CRA give themselves some weasel room with ' it depends on the circumstances ', but they primarily say that ' In general, it is conceivable to consider the short term GICs and deposits of a taxpayer with terms of agreements such as described by you, as part of cash or near cash assets. '

I think that between this document and your, and others, practical and anecdotal advice that it is pretty clear that these sorts of instruments do not need to be reported for deemed disposition purposes.
nelsona
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Re: GIC reporting in T 1161 and T 1243 ?

Post by nelsona »

You might want to save keep questions to more nuanced and practical ones.

Just sayin'
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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