On May 17, 2019, the Minister of Finance of Québec released an information bulletin (the Bulletin) implementing an immediate and mandatory disclosure mechanism with respect to nominee agreements. In particular, the Bulletin develops the General Anti-Avoidance Rule (GAAR) disclosure rules and penalties to aggressive tax planning involving shams and the use of nominee agreements. Non-disclosure can result in penalties and the suspension of the prescription (statute barring) period for any transactions subject to the nominee agreement.
To maximize compliance, Revenu Québec recently announced that it will be extending the deadline to disclose nominee agreements concluded prior to May 17, 2019 and that continue to have tax consequences after that date and those entered into on or after May 17, 2019.
The deadline is now the later of the following dates:
• the 90th day after the nominee agreement was entered into; or
• the 90th day following the day the legislation introducing the new measures receives assent.