Bill 42, introducing a new mandatory disclosure mechanism for nominee agreements in Québec¹ received assent on September 24, 2020.

As a result, nominee agreements entered into in the context of a transaction involving tax consequences must now be disclosed to Revenu Québec, in the form and manner prescribed for that purpose.

Nominee agreements entered into before September 24, 2020 must be disclosed by December 23, 2020, i.e. 90 days after Bill 42 received assent.

Failure to comply with the new disclosure requirement will result in penalties up to $5,000, as well as the suspension of the limitation period on assessments.

Filing deadlines

• The 90^th day following the conclusion of the nominee agreement; or
• December 23, 2020, i.e.the 90th day following the day Bill 42 received assent.

Parties to such an agreement entered into before May 17, 2019 are also required to file a disclosure by these deadlines at the latest, to the extent that the tax consequences of the transaction or series of transactions in respect of which the agreement relates continue after May 16, 2019.

If you are a member of a partnership that is party to such an agreement, you are also subject to the disclosure requirement.

Disclosure requirement

The disclosure must be made through a Form TP-1079.PN-V, sent under separate cover by registered mail. It shall include all information required therein, including the following:

• The date the nominee agreement was entered into;
• The identity of the parties to the nominee agreement;
• A full and sufficiently detailed description of the facts of the transaction or series of transactions to which the nominee agreement relates and the identity of any person or entity for which such transaction or series of transactions has tax consequences.

Do not hesitate to contact your Raymond Chabot Grant Thornton advisor who can help you determine which measures apply to your situation and assist you with the steps needed to comply with them.

1As announced by the Québec Ministry of Finance in Information Bulletin 2019-5 released on May 17, 2019.

The results for the 2020 CFE for chartered professional accountants were released on Tuesday, November 27, 2020.

Congratulations to our future CPAs on having passed this rigorous professional evaluation:

Congratulations to all and enjoy a prosperous career at Raymond Chabot Grant Thornton! We are very proud of having you on board with us.

Cybersecurity Month: VARS urges SMEs to strengthen their information security

“Investing in information security is no longer optional. It has become essential for keeping businesses competitive and ensuring their long-term viability.”

– Guillaume Caron, President and CEO, VARS

Montreal, October 27, 2020 – VARS, a division of Raymond Chabot Grant Thornton, is capitalizing on Cybersecurity Awareness Month to urge businesses to step up their security with sophisticated solutions that are tailored to their needs.

According to VMware, 99% of Canadian companies have reported an increase in cyber attacks over the past 12 months and the trend is unlikely to subside, especially now that businesses have shifted their activities online¹. Businesses need to update their strategies to ensure protection of their data and systems.

“Cybersecurity isn’t optional. It’s a necessary investment that all businesses, particularly small and medium-sized enterprises, should make urgently²,” said Guillaume Caron, President and CEO at VARS.

Reducing risk

The pandemic has catapulted telework to the fore and work-from-home arrangements are here to stay. The use of personal devices and unsecured computers, even for temporary periods, can leave the door wide open for hackers. With the sharp rise in phishing scams and ransomware attacks, growing volumes of accesses to manage, and employees increasingly exchanging sensitive information electronically without proper security controls in place, risks are running high for small and medium-sized enterprises (SMEs).

Consumer confidence hinges on security

Strong business relationships have always been based on trust and information security has become an important part of the equation. Organizations that uphold industry best practices and align with international information security standards—such as those set out by ISO, the National Institute of Standards and Technology and the Center for Internet Security—have a competitive advantage over businesses that don’t. Moreover, major corporations and government agencies are continually raising the bar for their third-party suppliers, most often small and mid-size businesses, forcing them to meet increasingly stringent security requirements in order to protect their own information security systems.

VARS innovations: Monitoring and detection at all levels and vCISOs

Traditional security solutions like anti-virus and firewalls are important but they aren’t enough to protect organizations against new and evolving threats. SMEs needs to be proactive and have full-time visibility of their networks and systems, including their emails, in order to detect threats. According to a recent IBM report, companies take an average of 207 days to identify data breaches³. This gives hackers plenty of time to plan and execute malicious activities, such as ransomware attacks. VARS offers advanced security solutions, including tools that can detect abnormal and malicious activities across an organization’s systems, data and network.

Hackers scour the dark web to find information such as login credentials and other data on organizations, employees and third parties. Many organizations are unaware that some of their information has been compromised and can be found on the dark web.

“In 2020, VARS dark web scans showed that an average of up to 30% of SME credentials are compromised or available for purchase on the web,” explained Guillaume Caron.

The VARS Virtual CISO Office gives organizations the power to leverage the expertise of a chief information security officer (CISO) without having to search for one or pay for a full-time resource, which can be particularly challenging given today’s skilled labour shortage. Having a full-time CISO could cost SMEs over $250,000 per year.

“VARS can assign a CISO to SMEs, which often don’t need a full-time expert on staff, giving them immediate availability at a fraction of the cost. We can help organizations with specific projects or work with them to develop and manage a complete information security program. In today’s world, any company that wants to remain innovative and competitive needs to embrace the digital shift by embedding security into business processes,” concluded Guillaume Caron.

1According to the August 2020 VMWare survey.
2According to a Canadian Internet Registration Authority (CIRA) survey released in October 2020, “Only 43% anticipate more financial resources devoted to cybersecurity in the next 12 months, down from 54% that expected an increase last year.”
32020 IBM report about the cost of data breaches, covered in Digitalguardian.

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals help accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,800 professionals, including approximately 200 partners, working in over 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton global organization, our global footprint spans across more than 140 countries with over 56,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Information:

Francis Letendre
Head – Public Affairs
Raymond Chabot Grant Thornton
Tel: 514-390-4201
Email: [email protected]