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Canada: Deadline extension proposed, nominee agreement disclosures in Quebec

Canada: Nominee agreement disclosures in Quebec

Revenue Quebec has proposed to extend the deadline for disclosures of nominee agreements.


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The deadline was previously established to be 16 September 2019 for certain agreements entered into before 17 May 2019, when the tax consequences continue after 16 May 2019. Read TaxNewsFlash

There is a proposal being considered that would extend the disclosure deadline to the later of:

  • The 90th day following the conclusion of the nominee agreement
  • The 90th day following the day the bill introducing the new measures receives Royal Assent

Accordingly, the new deadline would depend on certain measures that are expected to be included in a future bill—measures that have not yet been introduced.

Read an August 2019 report [PDF 178 KB] prepared by the KPMG member firm in Canada


There are new tax disclosure requirements in Quebec for those who have entered into a nominee agreement. Either party to a nominee agreement made as part of a transaction, or a series of transactions, must disclose the information to Revenue Quebec.

Under Quebec civil law (section 2130 of the Quebec Civil Code (QCC)), a nominee agreement (prête-nom or agency agreement) is a legal arrangement whereby the owner registers the property in the name of the nominee. While the nominee holds legal title to the property, the nominee does not hold any beneficial interest in the property. Also, nominees are not liable for owners’ contracts.

Under a nominee agreement, a person (i.e., the mandator) confers upon another person (i.e., the mandatary) the authority to represent him or her in the performance of a juridical act with a third person. The mandatary is bound to exercise this power. A nominee agreement is a simulation-led mandate, as defined under section 1451 QCC, whereby the agreement is a “secret contract” (counter-letter) that expresses the genuine will of the parties that differs from the intention expressed in the apparent contract. Generally, when there is a nominee agreement, the mandatary seemingly owns the property title and rights of this contract or the asset it pertains to without being the beneficial owner of the asset. The mandatary acts on behalf of the person that mandated him or her.

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