Do you carry on business in Quebec, or plan to in the future? If so, you may wish to find the right tax advisor. And by this, we do not mean an Accountant who can understand French.
In recent years, Revenu Quebec has effected several changes to the tax administration system. Since 2010, corporations with annual gross revenue over $1 million in a taxation year are required to file electronic returns (i.e. not paper returns) for Quebec purposes. Companies that do not comply with the electronic filing requirements are subject to a Quebec non-compliance penalty of $1,000 since 2013.
In January 2015, the Quebec tax authorities further changed the province’s tax filing process such that it has now become difficult – if not impossible – for many Accounting firms outside Quebec to electronically file tax returns on behalf of companies that do business in Quebec.
In order to properly service our clients, Sloan Partners LLP has formally arranged to participate in Revenu Quebec’s electronic filing services. As such, our clients who do business in Quebec – or have plans do to so – can focus on business matters, and not worry about the $1,000 non-compliance penalty.
When Revenu Quebec “enhanced” its electronic filing services for personal and corporate tax returns, they made the system available only to Accounting firms that have a Quebec Enterprise Number (NEQ). We are pleased to have acquired this access to the Quebec filing process in order to provide complete services to our clients. Accounting firms that do not have a Quebec presence cannot obtain an NEQ, and are therefore precluded from electronically filing Quebec returns.
Please note that every corporation having an establishment in the province of Quebec at any time is subject to tax in Quebec, and must file a Quebec income tax return. What is an “establishment”? Under the Quebec Taxation Act, it includes an office, a branch, a mine, warehouse or workshop, amongst other forms of actual physical presence. Furthermore, a corporation can be deemed to have an establishment in Quebec. For example, a corporation that carries on business through an employee, agent or mandatory in Quebec who has general authority to contract on behalf of the corporation is deemed to have an establishment in the province.
Please contact us if you would like to discuss business or tax planning matters in Quebec.
Jerry Paskowitz is a Partner with Sloan Partners, with over 30 years’ experience in all tax and financial matters. Contact Jerry for an appointment to discuss tax savings opportunities and financial strategies for your business.