To limit tax avoidance in used road vehicle transactions between individuals, the Québec sales tax (QST) system provides for an anti-avoidance measure designed to determine the minimum market value of such vehicles for the purpose of calculating the QST payable on their transfer.

The anti-avoidance measure does not apply to transactions between related individuals, since these transactions are likely to be made free of charge or for less than market value for reasons other than to avoid paying the QST.

Nevertheless, according to the current definition of “related individuals” referred to in the anti-avoidance measure, aunts and uncles are not considered to be related to their nephews and nieces. However, this situation does not reflect the reality where genuine gifts or sales at a price below fair market value are made between an aunt or uncle and their nephew or niece.

In information bulletin 2026-1 (PDF – 348 KB), the Québec Minister of Finance announced an amendment to the QST system to exclude used vehicle transactions between an aunt or uncle and their nephew or niece from the anti-avoidance measure. The amendment will apply to transfers made from January 29, 2026, onward.