How Does the CRA Know About Your Foreign Assets? CRS Information Exchange

The Common Reporting Standard, what information is exchanged, and what it means for your filings

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

"How would the CRA know about my savings in China?" — these days the answer is: it very likely does. Canada, mainland China and Hong Kong all take part in the OECD's Common Reporting Standard (CRS): financial institutions report the accounts of people who are not local tax residents to their local tax authority, and the tax authorities exchange this information with each other automatically every year.

100+

More than 100 countries and jurisdictions take part in CRS automatic exchange

Every year

Financial institutions report every year, and tax authorities exchange the information every year

2018

Canada began exchanging with other jurisdictions (collecting since 2017)

No general minimum

Individual accounts usually have no small-balance exemption, but there are excluded accounts and due diligence rules, so not every account is reported

How the information reaches the CRA

1
Opening an account
The bank asks you to complete a tax residency self-certification
2
Accounts flagged
The financial institution flags accounts held by Canadian tax residents
3
Reported locally
To the tax authorities in China or Hong Kong
4
Automatic exchange
Sent to the CRA every year
5
CRA matching
Compared with your tax returns and T1135

What information is exchanged

Information	Bank deposits accounts	Brokerage fund accounts	Cash-value insurance annuities
Account holder's name, address, tax identification number	✓	✓	✓
Account balance or value (at year-end)	✓	✓	✓Cash value
Interest	✓	✓	—
Dividends, sale proceeds	—	✓	—
Insurance payouts, surrender value	—	—	✓
The property itself	✕Real estate is not a financial account	✕	✕

Account holder's name, address, tax identification number

🏦 Bank deposits: ✓
📈 Brokerage: ✓
🛡️ Cash-value insurance: ✓

Account balance or value (at year-end)

🏦 Bank deposits: ✓
📈 Brokerage: ✓
🛡️ Cash-value insurance: ✓Cash value

Interest

🏦 Bank deposits: ✓
📈 Brokerage: ✓
🛡️ Cash-value insurance: —

Dividends, sale proceeds

🏦 Bank deposits: —
📈 Brokerage: ✓
🛡️ Cash-value insurance: —

Insurance payouts, surrender value

🏦 Bank deposits: —
📈 Brokerage: —
🛡️ Cash-value insurance: ✓

The property itself

🏦 Bank deposits: ✕Real estate is not a financial account
📈 Brokerage: ✕
🛡️ Cash-value insurance: ✕

Real estate is not covered by CRS, but once rent from a rental property goes into a bank account, that account's information is exchanged; the same applies when the proceeds from selling a home go into an account.

What it means for you

You've reported as required

Foreign income reported on your T1

T1135 filed

The CRA's comparison matches

Keep filing every year and keep your records

You didn't report, or under-reported, in the past

Income or the T1135 was missed

The CRS information doesn't match your filings

The CRA may write to ask questions or start a review

Correcting it yourself before a CRA letter arrives usually leads to much better treatment

Points to watch

Declare your status truthfully when opening accounts
When a bank in China or Hong Kong asks you to update your tax residency status, fill it in truthfully; getting it wrong may itself breach local rules.
Don't count on moving the money
Many jurisdictions take part in CRS; if you move the money to another bank or another jurisdiction, it is usually still within the exchange.
Be able to explain the numbers
CRS reports year-end balances, income and gross sale proceeds; the T1135 looks at cost and the T1 at net gains, so they are not the same figures. You need to be able to reconcile and explain your accounts, account holders and income records.
Deal with past omissions early
Correcting things yourself and being caught lead to very different outcomes; see "Unreported Foreign Income from Past Years? The Voluntary Disclosures Program" in this series.

How Sheng Qian CPA can help

Checking your accounts against your filings
We list your accounts in China and Hong Kong and compare them with your tax returns and T1135s for the past few years to see if there are any gaps.
Assessing any gaps first
We calculate the tax, interest and possible penalties on what needs to be reported, and compare the options for correcting it voluntarily.
Filing on time every year from now on
Your foreign income and the T1135 become part of your annual tax filing; for fees, see "What Sheng Qian CPA Can Do for Cross-Border Families: From Tax Returns to Foreign Asset Reporting" in this series.

Sources

CRA: Common Reporting Standard (CRS)
OECD: Automatic Exchange Portal

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.