A NEW FORM FOR OWNERS OF APARTMENT BUILDINGS
In its March 2015 budget, the Quebec Ministry of Finance had announced a revision of the solidarity tax credit with the aim of facilitating its application. To achieve this, owners of apartment buildings will now have to file a new tax form each year, which must be submitted to Revenu Québec, with a copy to each tenant or sub-tenant of the building.
More specifically, any person (corporation or individual) or partnership that owns a rental property located in Quebec for which rent has been paid will be required to file a Statement 31 containing the information prescribed for individuals who are tenants and subtenants of the property at the end of December of the year.
The prescribed information to be included in statement 31 is as follows:
- the total number of tenants or subtenants;
- the address of each dwelling;
- the full name and address of each lessee or sub-lessee; and
- the name and address of the owner(s).
Statement 31 must be filed by the last day of February of the year following the year to which the statements relate. For the 2015 tax year, statements 31 must be sent by February 29, 2016. An owner who fails to meet this obligation within the prescribed time is liable to a penalty of $25 per day of delay (maximum $2,500), and if reasonable efforts are not made to obtain the prescribed information, a penalty of $100 per item of information omitted may be applicable.
Electronic transmission of forms via software authorized by Revenu Québec or via the online service “Produire des relevés 31” is mandatory for owners with more than 50 relevés 31 to produce.
The tenant must use the sequential number on this form to claim the solidarity tax credit on his or her personal income tax return. The tenants and subtenants to be listed on this new form are individuals who have entered into a lease or sublease to which the landlord has consented, and who are therefore responsible for payment of the rent (does not include the individual who signs the lease as guarantor). This new form does not apply to certain dwellings in a principal residence (with some exceptions), a low-income housing unit (HLM), a center governed by the Act respecting health services and social services or a hotel establishment.
For more information on this new rule, please do not hesitate to contact us.
Benoît MalboeufCPA, CGA, M. Fisc.
Senior Director, Taxation
514 878-0270
bmalboeuf@demersbeaulne.com
Hans LalibertéCPA, CGA, LL. Mr. Fisc.
Director, Tax
514 878-0371
hlaliberte@demersbeaulne.com
