05 Aug 2019

Nominee agreements will now have to be disclosed to Revenu Québec. On August 22, 2019, Revenu Québec announced an extension of the production deadline in this regard.

Thus, required information returns will have to be filed on the later of the following dates:

  • the 90th day following the conclusion of the nominee agreement; or
  • the 90th day following the day the bill introducing the new measures receives assent. No bill has been published yet in this regard.

On May 17, 2019, the Québec Ministry of Finance released Information Bulletin 2019-5 in which it announced the introduction of a new mandatory disclosure mechanism for nominee contracts.

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.

Disclosure requirement

Information Bulletin 2019-5 provides that the disclosure must be made through a prescribed form that shall include the following information:

  • The date of the nominee agreement;
  • The identity of the parties to the nominee agreement;
  • A full 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;
  • Any other information requested in the prescribed form (when this becomes available).

Filing deadlines

The Bulletin provides that nominee agreements concluded on or after May 17, 2019 must be disclosed to Revenu Québec no later than 90 days after the date on which the nominee agreement was concluded and nominee agreements concluded prior to May 17, 2019 must be disclosed to Revenu Québec no later than September 16, 2019 where the tax consequences of the transaction (or series of transactions) to which the agreement relates continue after May 16, 2019.

However, to maximize compliance with the new obligation, Revenu Québec is extending the deadline for filing the information returns to the later of the following dates:

  • the 90th day following the conclusion of the nominee agreement; or
  • the 90th day following the day the bill introducing the new measures receives assent.

Until the prescribed form is made available by Revenu Québec, disclosure should be made by way of letter including such information. The disclosure made by one of the parties to the nominee agreement will be deemed to have been made by the other party as well.

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.

Next article

31 Jul 2019

In a Presse+ feature on government assistance for Quebec businesses, Luc Lacombe, Tax Partner and Jean-Philippe Brosseau, Senior Manager, Management Consulting, helped demystify various types of assistance and their impacts. Luc Lacombe clarified the difference between a subsidy, a loan and a tax credit. He explained that a tax credit is, “like a subsidy, it’s an amount that’s paid to the organization, but via an existing structure, the tax return”.

The reporter ranked businesses’ government assistance preferences—subsidies are the most popular, followed by tax credits and loans. Investments are the least common option.

Jean-Philippe Brosseau stated: “The first two are interchangeable. The tax credit is more predictable, recurring and available to any business that satisfies the criteria. Subsidies are paid more quickly, but are more subjective.”

To find out more, read the article on Presse+ (in French).

Next article

03 Jul 2019

The 2019 tax agreement between the provincial government and Quebec municipalities will soon be expiring. URBA, the Union des municipalités du Québec’s magazine asked Nicolas Plante, Management Consulting Partner, to shed some light on the situation and its impact on Quebec municipalities.

“A very large proportion of municipal income comes from property taxes, which places a considerable burden on residents. If you go back a few years, you’ll realize that municipal services have changed considerably. Before these services were limited to garbage removal, road maintenance, snow removal, etc. Today, they can include a cultural offering, mass transit, leisure activities and much more,” Nicolas Plante explained.

Beyond the growing reliance on property taxes, the shift to online retail sales also impacts municipalities significantly.

“E-commerce has extensive repercussions on municipal income, which depends extensively on new retail business and industrial tax income. The digital economy does not need new premises, leaving municipalities with a major challenge in terms of revenue sources,” Nicolas Plante added.

To read the full article on the tax agreement, consult the online version of URBA (page 14).

Next article

02 Jul 2019

Raymond Chabot Grant Thornton’s Corporate Finance team is pleased to announce the successful sale of Vulcain Metal Inc. (“Vulcain”) to ISE Metal Inc. (“ISE”).

Vulcain is a leading manufacturer of high-quality steel, aluminum and stainless steel components and sub-assemblies. It is focused on serving the truck, bus, tracked utility vehicle, train, electric connector and electric enclosure markets. For over 60 years, the Saint-Jérôme-based company has established itself as the top supplier of small-batch hard-to-fabricate parts to notable blue-chip manufacturers.

ISE is a Sherbrooke-based leader in the sheet metal fabrication sector whose operations range from metal stamping to laser cutting, machining and complex assemblies with an international manufacturing footprint over 600 employees.

“For an entrepreneur, selling your business often means the conclusion to a lifelong project. Raymond Chabot Grant Thornton’s Corporate Finance advisory team tirelessly managed the transaction from beginning to end and assisted us in realizing the full value of our company”, states Luc Lusignan, Executive Vice President at Vulcain.

Raymond Chabot Grant Thorton tombstone banner

Vulcain Metal is acquired by ISE Métal

“As the process was nearing the end, and fatigue and few doubts started to seep through, In Sunwoo’s support and guidance were masterful. My partner and I are very grateful to the Raymond Chabot Grant Thornton team.”

Raymond Chabot Grant Thornton acted as exclusive financial advisor to Vulcain.

To learn more about how Raymond Chabot Grant Thornton can help meet the needs of your business, please contact our deal team.

About Raymond Chabot Grant Thornton

Our leading mid-market focused corporate finance advisory team provides sector-specific advice on mergers, acquisitions and divestitures, debt and equity capital markets. We bring deep industry knowledge to each transaction to support our clients’ corporate finance strategies and priorities.

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 2,600 professionals. Raymond Chabot Grant Thornton is part of the global organization, Grant Thornton. Our global footprint spans across more than 135 countries with over 53,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

Deal Team:

Mark Rossi
In Sunwoo
Firas Ben
Rachel Goldberg