- 20 diciembre, 2020
- Posted by: admin-fenocol
The applicant acquires a rental property in July 2018 and still has title deeds after May 17, 2019. The economic beneficiary collects the rent and incums a fee for the property after that date and, therefore, the Nominee contract must be disclosed. Due to the type of nominal agreements, agent relationships disclosed (for example. B a relationship between a client and his or her lawyer or security guard) is not subject to the new disclosure requirement. Agreements in which only certain parties are informed of the existence of a nomine relationship (for example. B if a tenant knows that there is a nominating agreement, but the public is led to believe that the candidate is acting on his or her behalf) would remain subject to the new disclosure obligation. Please note that failure to comply with this new disclosure requirement will result in penalties (including certain daily penalties) and the suspension of the limitation period for reassessments until the disclosure obligation is met. Therefore, we advise you to make all nominal agreements concluded since May 17, 2019 as soon as possible and in all cases at the latest. In addition, if the tax consequences persist after May 16, 2019, certain agreements reached before May 17, 2019 must be disclosed by September 16, 2019. Taxpayers who do not disclose nominal agreements can expect penalties of up to $5,000, even if they already disclose the details of such an agreement on their provincial tax return. In light of RQ`s comments on “tax consequences” with respect to “income tax effects,” the authors ask whether the tax period is suspended only with respect to the effects of the income tax of the agreement or other related tax consequences, such as. B Quebec tax on rental income. These amendments apply to nominating agreements concluded after May 16, 2019.