On May 17, 2019, Finance Quebec released measures to deal with
combating aggressive tax planning. These measures deal with sham
transactions, the mandatory disclosure of prescribed transactions
and the mandatory disclosure of nominee or prête-nom
agreements.
Under Quebec Civil law, a prête-nom agreement is a
contract of mandate where a person (the agent) acts on behalf of
another person (the principal). The agent in its name acts for the
principal. This is known as an undisclosed mandate.
Going forward from May 17, 2019, all prête-nom agreements
entered into on or after that date must be disclosed to Revenu
Québec. This disclosure will be made via a prescribed
information return which must be filed with Revenu Québec.
As at this time, the prescribed information form has not yet been
published. The bulletin indicated that the prescribed information
must include the following:
