Quebec: Disclosure of Nominee Agreements

On September 24, 2020, the Quebec government passed legislation to require the disclosure of nominee agreements (prete-noms contracts). The one-time disclosure can be made by any of the parties to the agreement and is made on prescribed form TP-1079.PN.

The disclosure applies if at least one party to the agreement is a resident of Quebec for tax purposes. The disclosure includes information that identifies the parties to the agreement, provides a complete description of the facts of the transaction, and identifies all other persons that face tax consequences from the transactions contemplated in the agreement.The deadline for the disclosure applies as follows:

Agreements entered into on or after September 24, 2020: no later than 90 days

Agreements entered into after May 16, 2019: no later than December 23, 2020

Agreements entered into before May 17, 2019 and that continue to have tax consequences after Mary 16, 2019: no later than December 23, 2020

Failure to file the disclosure or to file on time carries penalties that can reach up to $5,000 and the suspension of the prescription period in regards to transactions related to the nominee agreement.

FL can assist you in determining if this measure applies to you and to meet your obligations. Contact us.

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