Publications

March 30, 2020

COVID-19: How to adapt your current tax planning?

The spread of COVID-19 is having a considerable negative effect on the global economy. Several tax planning strategies adapted to the current situation can be considered in order to mitigate the impact. Tax planning for individuals helps to (i) reduce the taxes payable upon death, (ii) encourage (…)

March 18, 2020

Bill 37 and Preventive Disclosure of Tax Planning: Why and How?

Bill 37, now known as the Act mainly to establish the Centre d’acquisitions gouvernementales and Infrastructures technologiques Québec, SQ 2020 c. 2,  was assented to on February 21, 2020. In particular, this act makes significant changes to the Act respecting contracting by public bodies, CQLR c. (…)

March 13, 2020

The 2020-2021 Quebec Budget: New Measures to Promote Innovation!

Quebec’s Minister of Finance tabled his budget for 2020-2021, titled Your Future, your Budget1, on March 10. Among the new measures introduced by the government, new tax incentives for innovation and the commercialization of Quebec intellectual property were announced. The incentive deduction for (…)

September 24, 2019

New Compensation Method: Employee Benefit Trust Replacing Stock Option Plans

Nowadays, many employers are seeking out forms of compensation that will help motivate and retain key employees. More and more, employers are opting for one of a variety of company stock ownership profit-sharing plans to reach this objective. Employers who wish to implement this type of structure (…)

July 4, 2019

What are Revenu Québec's new tools to fight against “aggressive” tax planning?

On May 17, 2019, the Ministère des Finances du Québec announced new anti-avoidance tax measures in its Information Bulletin 2019-5 (the “Bulletin”) that are in line with today’s tightening of the tax environment and the fight against tax planning deemed to be aggressive. The measures announced on (…)

September 19, 2017

Substantial upcoming tax impact on investment funds’ management compensation

On September 8, 2017, the Minister of Finance introduced unexpected legislative and regulatory proposals regarding partnership distributions to a general partner, which will now be subject to GST/HST. On the other hand, the Québec government has yet to propose similar changes, but we believe it will (…)

April 6, 2017

CRS: Be ready for July 1^st, 2017

CRS entry into force: July 1st, 2017 The Common Reporting Standard (“CRS”) will impose new obligations on financial institutions, including investment funds, as of July 1st, 2017. These rules are an addition to the existing Foreign Account Tax Compliance Act (“FATCA”), which applies to Canadian (…)

March 23, 2017

Artificial Intelligence and the 2017 Canadian Budget: is your business ready?

The March 22, 2017 Budget of the Government of Canada, through its “Innovation and Skills Plan” (http://www.budget.gc.ca/2017/docs/plan/budget-2017-en.pdf) mentions that Canadian academic and research leadership in artificial intelligence will be translated into a more innovative economy and (…)

March 7, 2017

Federal budget and capital gain: Time for tax planning

There is currently speculation in the media that Liberal Finance Minister Bill Morneau’s next federal budget will increase the capital gain inclusion rate from 50% to 75%.The combined marginal tax rate on capital gains is currently 26.7% for a resident of Québec. This rate would reach nearly 40% if (…)

December 16, 2016

Changes to the Taxation of Switch Funds

Effective January 1, 2017, new rules will govern the taxation of mutual fund corporations structured as “switch funds”. Investors switching between funds will no longer be able to do so without incurring taxable capital gains. This article summarizes the impact of such changes. Description of (…)

October 21, 2016

Use of “private” mutual fund trusts for employee’ investments through an RRSP

An increasing number of employers are looking at the possibility of creating investment vehicles to allow their employees to make investments in the employer corporation or a portfolio managed by the employer that will qualify for inclusion in, inter alia, registered retirement savings plans (RRSP), (…)

April 13, 2016

Significant amendments to the Act Respecting Duties on Transfers of Immovable following the 2016-2017 provincial budget

The use of a nominee corporation The Act Respecting Duties on Transfers of Immovables (the “Act”) imposes transfer duties (also known as the “welcome tax”) on the transfer of immovables in Quebec. Since transfer duties are only payable from the time the transfer is registered in the land register (…)

March 23, 2016

Tax relief to stimulate commercialization of intellectual property made in Québec

Inspired by a worldwide trend to encourage the growth of innovation, Québec has recently announced a new tax relief measure for innovative companies.  Thus, the Québec government is instituting an “innovative companies deduction” (ICD). The goal of this initiative is to “ensure that innovations (…)