Tag Archives: Revenu Québec

Recent Canadian and Quebec Tax Measures

During the week of March 23, 2020, the Canadian and Quebec governments announced a series of additional tax measures to further strengthen the economy in the wake of the ongoing COVID-19 pandemic. A number of procedural announcements relating to statutory deadlines and limitation periods have also been made by the Canada Revenue Agency (CRA) and Quebec Revenue Agency (Revenu Québec). A summary of these new measures is provided below. Summaries of previously announced measures may be accessed here (Canada) and here (Quebec).

Federal

Taxation of the Canada Emergency Response Benefit (CERB)

The federal government announced the introduction of the CERB on March 18, 2020. The CERB will provide a taxable benefit of $2,000 a month for up to 4 months to support workers (including self-employed individuals) who lose their income as a result of the COVID-19 pandemic. Following conflicting reports in this regard, the government confirmed on March 27, 2020 that the CERB will be taxable for claimants, but that no income tax withholding will be made on the CERB by the federal government.

Enhanced Temporary Wage Subsidy for Eligible Employers

On March 18, 2020, the federal government announced that a temporary wage subsidy (TWS) would be introduced for eligible employers in an amount equal to 10% of salary and other remuneration paid to Canadian employees. The stated purpose of the TWS is to help Canadians remain employed. It improves the cash flow of eligible employers (which include Canadian-controlled private corporations eligible for the small business deduction, individuals other than trusts, certain partnerships, non-profit organizations and registered charities) by allowing them to deduct the amount of the subsidy from periodic source deduction remittances payable to the CRA over the coming months. The maximum subsidy was initially set at $1,375 per employee, and $25,000 per employer.

On March 27, 2020, Prime Minister Trudeau announced that the amount of the TWS will be increased to 75% (as opposed to 10%) of salary and other remuneration paid to Canadian employees. It remains to be seen whether the maximum subsidy of $1,375 per employee and $25,000 per employer will be increased as well.

Further details in this regard will be provided once they become available.

Postponement of GST/HST Remittances

The federal government is deferring remittances of the following amounts to June 30, 2020:

  • Goods and Services Tax (GST)/Harmonized Sales Tax (HST) owing in respect of the February, March and April 2020 reporting periods, for monthly filers;
  • GST/HST owing in respect of the January 1, 2020 through March 31, 2020 reporting period, for quarterly filers; and
  • GST/HST owing in respect of the previous fiscal year and installments of GST/HST in respect of the current fiscal year, for annual filers whose GST/HST return or installment is due in March, April or May 2020.

This relief measure does not clearly address the situation of certain registrants, such as those who file on a quarterly basis but whose fiscal year-end is not December 31. Such businesses should contact the CRA to confirm whether they benefit from the deferral.   

The proposed measure also does not appear to extend the deadline for filing GST/HST returns.

Directors of corporate taxpayers should bear in mind that they may be held jointly and severally liable to pay any unremitted GST/HST, as well as any interest or penalties relating thereto.

Postponement of Import GST and Customs Duty Payments

The federal government has also announced that it is deferring the payment deadline for import GST and customs duties in respect of March, April and May statements of accounts until June 30, 2020.

Filing Notices of Objection with CRA

On March 28, 2020, the CRA announced that the deadline for filing notices of objection due March 18, 2020 or later would be extended until June 30, 2020.

Tax Court of Canada Procedures

On March 23, 2020, the Tax Court of Canada (TCC) released a Practice Direction and Order announcing that all sittings and conferences calls scheduled between March 16, 2020 and May 1, 2020 inclusively are cancelled and that the Court and its Registry offices will be closed until further notice.

The TCC also announced that it is suspending, from March 16, 2020 to May 1, 2020, the time limits provided for in the Tax Court of Canada Rules and any TCC orders and directions made prior to March 16, 2020.

The statutory deadlines for filing notices of appeal from income tax assessments and reassessments and GST assessments and reassessments continue to apply.  The notices of appeal required to be filed within these statutory deadlines must be filed electronically or by telecopier.  Where no statutory deadline applies, taxpayers are asked to wait and file their notices of appeal once the Court resumes its operations.

Quebec

Postponement of QST Returns and Remittances

In Information Bulletin 2020-5 dated March 27, 2020, the Quebec government announced that it would allow businesses to postpone the filing of Québec Sales Tax (QST) returns and the remittance of QST due between March 27, 2020 (inclusively) and June 30, 2020. As mentioned above, it does not appear that the equivalent federal relief measure extends the filing deadline for GST/HST returns. Given that Quebec taxpayers report GST and QST on the same return, it is not clear whether any substantial relief will be afforded to them from a reporting standpoint. Further information regarding the possible harmonization of the federal and Quebec relief measures is expected in the coming days.

Directors of corporate taxpayers should bear in mind that they may be held jointly and severally liable to pay any unremitted QST, as well as any interest or penalties relating thereto.

Acceleration of Tax Credits and Tax Refunds

In a press release dated March 27, 2020, Revenu Québec announced that it would accelerate the processing of tax credits and tax refunds claimed by businesses. No specific timeline has been announced in this regard.

Filing Corporate Income Tax Returns and Notices of Objection with Revenu Québec

Revenu Québec also announced in the above-mentioned press release that the deadline to take “administrative tax actions” (gestes fiscaux administratifs) will be extended to June 1, 2020.

The press release clarifies that this measure applies to corporate income tax returns that would otherwise be due between March 27 and June 1, 2020. Interest and penalties are therefore not expected to apply during such period in respect of such returns.

No further clarification is provided with respect to other administrative tax actions targeted by this measure. Although it may arguably include the filing of a notice of objection, absent specific legislative action or further clarification from Revenu Québec, it is recommended that taxpayers continue to file such notices by the 90-day statutory deadline to preserve their right to challenge any notice of assessment or reassessment.

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Cotisation par mouvement de trésorerie : « On n’utilise pas un canon pour tuer une mouche »

 

Dans une décision récente de la Cour du Québec (Dion c. l’Agence du revenu du Québec, 2018 QCCQ 10280), division des petites créances, l’honorable Juge Dortélus réitère à l’Agence du revenu Québec (« Revenu Québec ») l’importance d’appliquer les méthodes estimatives avec rigueur, sans excès ni exagération.

Dans cette affaire, Revenu Québec a utilisé la méthode estimative mouvement de trésorerie afin d’ajouter des revenus présumés non déclarés à Mme Dion pour les années d’imposition 2006, 2007 et 2008.

Initialement, le dossier de Mme Dion avait été sélectionné pour vérification dans le cadre du projet organisationnel de lutte contre l’évasion fiscale selon les « Indices de richesse ». Dans le cas particulier de Mme Dion, les indices de richesse qui avaient attiré l’attention de Revenu Québec étaient qu’elle était propriétaire d’un immeuble ayant une valeur de 352 400$ et propriétaire d’un véhicule ayant une valeur de 30 366$, ce qui, selon les propos du juge, est « une hypothèse très mince d’indices de richesse ».

Le Juge Dortélus réitère à Revenu Québec l’importance de prendre en considération la réalité du contribuable, mais aussi d’analyser sérieusement les motifs de contestation de celui-ci lorsqu’il y a utilisation par les autorités fiscales d’une méthode estimative :

[39] Lorsque cette méthode indirecte de cotisation est appliquée, on doit tenir compte de la situation réelle du contribuable qui connaît et possède des renseignements dont le l’ARQ ne dispose pas. On ne doit pas écarter sans motif valable ces renseignements, ce qui semble avoir été le cas dans la situation ou Mme Dion.

Dans le cadre de l’audience, Mme Dion soulève que les revenus ajoutés suivant la vérification ne sont pas des revenus, en démontrant, entre autres, qu’un montant traité comme une augmentation de placement par Revenu Québec était en fait des sommes provenant de ses comptes bancaires.

De plus, Mme Dion conteste le calcul du coût de vie effectuée par Revenu Québec selon les données de Statistiques Canada, puisque celui-ci ne reflète pas sa situation réelle. Mme Dion a démontré lors de l’audience que son coût de vie réel était jusqu’à trois fois moindre que celui calculé par Revenu Québec.

Finalement, le Juge Dortélus rappelle qu’un contribuable continue de bénéficier de la présomption de bonne foi prévue à l’article 2805 du Code civil du Québec, et ce, même s’il fait l’objet d’une vérification selon une méthode estimative. À cet effet, il précise que cette présomption légale n’est pas renversée par la seule présence d’indices de richesse qui pourraient mener les autorités fiscales à soupçonner qu’un contribuable n’aurait pas déclaré l’ensemble de ses revenus.

Dans le cadre de l’audience, Mme Dion a été en mesure de démontrer la non-fiabilité de la méthode utilisée par Revenu Québec et que le calcul du coût de vie ne tenait pas compte de sa réalité. Son appel a donc été accueilli et les avis de cotisation ont été annulés.

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Rapport annuel du Bureau de la protection des droits de la clientèle de Revenu Québec: il reste encore beaucoup à faire!

chateau-frontenac-3462997_1920Depuis plusieurs années, de nombreuses pratiques de Revenu Québec (« RQ ») ont été dénoncées par le public, les médias et différents organismes. Ceci a contribué à la perte de confiance du public envers l’agence gouvernementale.

Dans son rapport annuel 2014-2015, le Protecteur du citoyen déplorait le comportement de RQ auprès des contribuables et soulignait, en résumé :

  • la judiciarisation inutile des désaccords ;
  • l’application de positions rigides malgré les décisions contradictoires des tribunaux ;
  • les méthodes de vérification inadéquates et abusives ;
  • l’émission d’avis de cotisation erronés basés sur des présomptions inadéquates;
  • le refus de RQ de considérer les explications de certains contribuables.

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