As a reminder, a nominated agreement is a mandate by which a person, the client, another person, the agent, gives the power to enter into a contract on his behalf with a third party. As a general rule, the objective is to do so without informing the third party that the agent is acting on behalf of the client, since the third party is acting on its own behalf. This is a common form of contract for real estate transactions, especially when it is desirable for a party to remain anonymous, for example to protect the confidentiality of investments. You will be required to submit this form if you are required to disclose a Nominian agreement made as part of a transaction or series of transactions, or if you are a member of a partnership that is a party to such an agreement. The commitment applies to all Nominee agreements concluded on May 17, 2019 or after May 17, 2019, as well as to certain agreements reached before that date if the tax consequences persist after May 16, 2019. 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. The party disclosing the agreement must do so through a TP-1079 form. PN-V Disclosure of a nominated agreement.

The required form requires disclosure of the following information: The required form states that there is no obligation to disclose a nominating contract if it has been entered into by a person with a person linked to a financial institution`s application to finance the purchase of real estate for the personal use of the person, provided that the related person has not co-signed more than 50% of the fair value of the property. If you are participating in an agreement that could be considered a “nominated contract,” you should immediately contact your tax advisors to ensure that you are complying with the new disclosure requirement in a timely manner. Did you know that it is necessary to disclose the agreements nominated for Revenue Quebec? Since the introduction of Bill 42 A Law on the Effect of the BudgetAry Speech announced in the Budget Speech of March 21, 2019 and various other measures[2] (“Bill 42”) is required for any nominating contract concluded after May 16, 2019 or concluded before May 17, 2019, if the tax consequences of the transaction covered by the nominating agreement relate to , on or after the date. On May 17, 2019, the Quebec Ministry of Finance released the 2019-5 newsletter[3] which clarifies this mandatory disclosure mechanism and the new rules for nominees. With respect to Nominee agreements that were executed prior to May 17, 2019, our clients should decide whether the “revenue effects” associated with such nominated agreements continue to or after that date. Such an analysis should be done on a case-by-case basis. As noted above, this should likely include typical nominated agreements used in the real estate sector and concluded before May 17, 2019, as long as the property was not sold before that date. If applicable, disclosure must be submitted by December 23, 2020. Taxpayers must meet this new requirement by filing a mandatory form for qualified nominated agreements, even if they already disclose the details of such an agreement on their provincial tax returns.