Martin Delisle outlines developments in tax compliance at the annual conference of the APFF

Montréal, November 5, 2019 – At the last annual conference of the Association de planification fiscale et financière du Québec (APFF), Martin Delisle, partner and head of our Tax litigation group, along with representatives of Revenu Québec, held a conference on Revenu Québec’s new policies and related legislative amendments with respect to tax compliance.

Since the new policies came into effect, parties to a nominee agreement will have to disclose its existence to Revenu Québec, under penalty of sanctions.

More severe penalties will now apply to taxpayers, advisors, and promoters of sham transactions. Furthermore, an additional three-year period will be added to the normal limitation periods for a tax assessment.

In addition, companies involved in sham transactions as well as their advisor or promoter, as well as companies that are assessed under the general anti-avoidance rule (“GAAR”) and charged a GAAR penalty, will now be registered in the register of enterprises ineligible for public contracts (“RENA”).

Finally, to prevent some of the undesirable consequences of these new measures, a mechanism for late disclosure of prescribed (or designated) transactions is provided. Details on the application of these measures are available in the Information Bulletin 2019-5 and in Bill no 37: An Act mainly to establish the Centre d’acquisitions gouvernementales and Infrastructures technologiques Québec.

For more information, we invite you to visit the website of the APFF or to contact our tax litigation team.