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ARTICLE · 12 JANUARY 2010

Québec Seeks To Counter Aggressive Tax Planning

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On October 15, 2009, the Québec Minister of Finance announced the implementation of new measures designed to counter perceived aggressive tax planning by changing the risk/ reward ratio for taxpayers.

CanadaTax

On October 15, 2009, the Québec Minister of Finance announced the implementation of new measures designed to counter perceived aggressive tax planning by changing the risk/ reward ratio for taxpayers. These changes could be significant to all Canadian taxpayers who have a permanent establishment or carry on business in Québec and to advisors who promote tax plans in Québec.

In addition to expanding and toughening its general anti-avoidance rule (GAAR), Québec has instituted mandatory disclosure requirements for certain transactions, introduced harsh penalties and extended the time to reassess. Except as noted below, the new rules are effective for transactions occurring on or after October 15, 2009.

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