Nominee Agreements Quebec

The RAQ also established that there was no obligation to disclose a nominated contract if it was entered into by a natural person with a related person, at the request of a financial institution, in financing the purchase of real estate intended solely for the personal use of the person, provided that the related person does not co-appoint more than 50% of the fair value of the real estate. According to Le Revenu, “tax consequences” are interpreted as income tax consequences when fiscal sovereignty is Quebec. The advertising rules apply to many common nominal agreements, including the majority of commercial transactions; real estate transactions in the province; and Nominee agreements for properties outside Quebec, if one of the parties is subject to Quebec income tax. This is not a recurring obligation and the required form should only be submitted once. Disclosure of a nominated agreement entered into by one of the parties to the agreement shall be deemed to have been concluded by all other parties. The required form must be accompanied by a copy of the Nominee Agreement. According to the bill, mandatory disclosure must be through a mandatory form. The information to be disclosed is as follows: (a) the date on which the Nominee Contract was concluded, (b) the identity of the parties to the Nominee Contract, (c) a full description of the facts of the transaction, sufficiently detailed to enable the Minister to analyse it and correctly understand the tax consequences; (d) the identity of any other natural or legal person for whom the transaction has tax consequences; e) other information required by the required form, including a copy of the Nominee Agreement. The prescribed form (TP-1079). PN) is available on the RQ website and must be sent by registered letter. Prior to the approval of Quebec Bill 42, the existence and purpose of the Nominee agreements were requested: from the QRA on the CO-17, Corporation Income Tax Return (Form CO-17) in order, among other things, to prevent the nominee from paying income tax on the income generated by the property and to collect and transfer the Goods and Services Sales Tax /Qu├ębec Tax (GST/QST) by the beneficial owners and the processing of the GST/ QST input VAT refund rights or rebates. If the parties to the Nominee Agreement do not provide the required information within the current period, they are jointly and severally liable for a fine of USD 1,000 and an additional fine of USD 100 per day for the duration of the omission up to a maximum of USD 5,000.

In addition, secrecy can also lead to the inhibition of the limitation period with regard to the tax consequences of the Nominee contract. . . .

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