Published | Categories : Tax avoidance, Better tax practices – businesses

Late Preventive Disclosure

Businesses that Used Abusive Tax Avoidance Schemes To Be Listed in the RENA

Further to the passage of Bill 37, the Act mainly to establish the Centre d'acquisitions gouvernementales and Infrastructures technologiques Québec, businesses that are imposed a penalty further to a final assessment based on the general anti-avoidance rule (GAAR) as well as the promoters of the transactions in question on whom a GAAR-based penalty has been imposed, will now be listed in the Registre des entreprises non admissibles aux contrats publics (RENA) for five years. The Act respecting contracting by public bodies will be amended to provide that the listing also apply to businesses related to a person that has been imposed a GAAR-based penalty.

Moreover, the penalties imposed will be taken into account by the Autorité des marchés publics when it comes to deciding whether or not to authorize a business to enter into contracts with a public body.

If you make a late preventive disclosure by duly completing and filing the form by the deadline, you will avoid:

  • incurring GAAR-based penalties with respect to the disclosed transaction;
  • being listed in the RENA.

As of now, you can send us a late preventive disclosure form for a transaction or a series of transactions, even though the deadline for making the disclosure under section 1079.8.10 of the Taxation Act has expired, as long as we receive your disclosure within 60 days of the passage of Bill 37. To make a late preventive disclosure, file form TP-1079.DI-V, Mandatory or Preventive Disclosure of Tax Planning, with a letter explaining that the form is being filed as a late preventive disclosure, in accordance with section 44 of Bill 37.

Late preventive disclosures for a transaction or a series of transactions for which a Revenu Québec or a Canada Revenue Agency audit has already begun will not be accepted.

For more information, see Bill 37.

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