As mentioned in the March 21, 2019, Quebec budget, the Province
of Quebec has bolstered the disclosure requirement of nominee
agreements (Measure). This initiative is in line with its stated
intention to protect the integrity and fairness of its tax system.
The Measure forms part of the Quebec Ministry of Finance's
Information Bulletin 2019-5 (Bulletin) published on May 17, 2019,
and Quebec's tax legislation will be amended accordingly.
At the time of drafting, the Measure is considered relevant for
any taxpayer that is subject to Quebec tax laws and has entered
into a nominee agreement.
NOMINEE AGREEMENTS
The Measure targets nominee agreements made as part of a
transaction or series of transactions that have Quebec "tax
consequences." Nominee agreements are lawful forms of
contracts of mandate that, under Quebec civil law, allow a
mandatary to act on behalf of a mandator while appearing in the
eyes of third parties to be acting in the mandatary's own name.
Such
