Quebec Fights Aggressive Tax Planning.Following on its "Green Paper" released in January 2009, Quebec's Department of Finance announced its intention to amend Quebec's tax legislation, effective October 15, 2009, to combat aggressive tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. . Among the proposed measures are. A mandatory requirement to report, by the taxpayer's filing due date for the taxation year in which a transaction occurs, a transaction which results in a tax benefit of more than $25,000 (or an impact on the income of the taxpayer of more than $100,000) and which meets the criteria of either a confidential transaction or a transaction with conditional remuneration. Failure to disclose may result in a penalty ranging from $10,000 to $100,000. For transactions which are not disclosed on a timely basis, a three year extension of the normal three or four year limitation period under which a reassessment may be made based on Quebec's general anti-avoidance rule ("GAAR GAAR General Anti-Avoidance Rule GAAR Gates of the Arctic National Park and Preserve (US National Park Service) "). Where the GAAR applies to a transaction and the transaction was not disclosed on a timely basis, in addition to a denial of the tax benefit, the taxpayer will pay an additional penalty equal to 25% of the amount of the denied tax benefit, while a person who promoted or marketed the transaction will pay a penalty equal to 12.5% of the consideration received for the transaction. These measures are designed to provide the Quebec government with more effective tools to combat aggressive tax planning. Taxpayers and their advisers will need to consider the potential application of these new rules in the context of any tax planning. To read Finance Quebec's Information Bulletin outlining these measures, please click here. About BLG BLG Bulk Liquids and Gases BLG Borden Ladner Gervais LLP BLG Boys Like Girls (band) BLG Bremer Lagerhaus-Gesellschaft AG (Bremen, Germany) BLG Betalactoglobulin The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Mr National Tax Group, BLG Borden Ladner Gervais Borden Ladner Gervais LLP (BLG for short) is a full service Canadian corporate law firm based in Toronto. The firm has over 700 lawyers and intellectual property agents, practising in offices in Toronto, Calgary, Vancouver, Ottawa, Montreal, and the Waterloo region. LLP LLP - Lower Layer Protocol Scotia Plaza Scotia Plaza is a commercial office complex in the city of Toronto, Ontario, Canada. The complex is situated in the financial district of the downtown core, and is generally bordered by Yonge Street on the east, King Street West on the south, Bay Street on the west, and Adelaide 40 King Street West Toronto Ontario M5H 3Y4 CANADA Tel: 4163676000 Fax: 4163676749 E-mail: info@blgcanada.com URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.blgcanada.com Click Here for related articles (c) Mondaq Ltd, 2009 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
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