To help fight tax evasion and strengthen Québec's tax system, the Minister of Finance announced in his budget speech on March 25, 2025, that taxpayers and partnerships resident in Québec (hereinafter “filers”) would be required to report foreign property they hold outside Canada if the total cost was more than $100,000 (Canadian) at any time during the filer's taxation year or fiscal period, as applicable.

New form

Foreign property will have to be reported using the new Foreign Property Return (prescribed form TP-1079.8.BE-V). Filers will have to complete the form for all their taxation years or fiscal periods ending after December 30, 2025. They will have to send Revenu Québec the form by the filing deadline for their income tax or information return for a given taxation year or fiscal period.

New penalties

Filers subject to the foreign property reporting requirement who fail to comply with it may incur the following penalties:

• a penalty for failing to file the prescribed form equal to $500 per month or part of a month (for a maximum of 24 months), up to $12,000 (or double that amount if the filer receives a formal demand to file the form and fails to comply with it by the deadline)
• an additional penalty of 5% of the total cost of the foreign property, if the filer fails to file the form for more than 24 months
• a penalty equal to $24,000 or 5% of the total cost of the foreign property, whichever is greater, in the case of a false statement or omission

Extended assessment period

Three years will be added to the usual period in which a reassessment can be made regarding a filer's taxation year or fiscal period. In other words, an assessment, reassessment or additional assessment may be made within three years following the end of the usual assessment period if both of the following conditions are met: 

• The filer (or a partnership they are a member of) fails to file the prescribed form for the taxation year (or fiscal period) as and when required or fails to report required information about foreign property held during the year or period on the form.
• The filer fails to report, in their income tax or information return for the taxation year or fiscal period (as applicable), an amount for foreign property that must be included in their income for the year or period.

For more information, see Budget 2025–2026 – Additional Information on the Ministère des Finances website.