Revenu Québec recently published an information bulletin on “prête-nom” transactions.
. Although these transactions are legal, Quebec tax legislation will be amended to require parties involved in a nominee agreement to disclose this situation to Revenu Québec.
More specifically, the disclosure of information to Revenu Québec will have to be made on a prescribed form, which is not yet available, and will have to include :
- The date of the nominee contract;
- The identity of the parties to the contract;
- A complete description of the facts relating to the operations to which the contract relates.
Failure to produce will result in a penalty of $1,000 plus an additional $100 per day, starting on the 2nd day, up to a maximum of $5,000.
A. Nominee agreement entered into before May 17, 2019
- Disclosure is mandatory when the effects of the agreement continue on or after May 17, 2019. Disclosure is due by September 16, 2019.
B. Nominee agreement entered into on or after May 17, 2019
- Disclosure is mandatory and must be filed no later than 90 days following the date on which the nominee contract was entered into.
C. Action to be taken
- Make a list of all your nominee contracts
- Document each operation
- Complete the official form on time
If you have any questions, don’t hesitate to contact our experts to implement the required actions.
Bulletin d’information 2019-5, 17 mai 2019;
