I-3 - Taxation Act

Section 1079.8.1 Disposition versions

2022-06-08

1079.8.1. In this Book,

“adviser” in respect of a transaction means a person or partnership that provides help, assistance or advice regarding the design or implementation of the transaction, or that commercializes or promotes it;

“confidential transaction”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means a transaction under which the taxpayer or partnership retained the services of an adviser in respect of the transaction and under which the contract between the taxpayer and the adviser or between the partnership and the adviser, as the case may be, includes, in relation to the transaction, an undertaking of confidentiality of the taxpayer or partnership towards other persons or towards an income taxation authority in Canada or elsewhere;

“promoter” has the meaning assigned by section 1079.9;

“specified transaction” carried out by a taxpayer or a partnership means a transaction whose form and substance of the facts specific to the taxpayer or the partnership are significantly similar to the form and the substance of the facts of a transaction determined by the Minister and published in the Gazette officielle du Québec;

“tax benefit” means a reduction, avoidance or deferral of the tax or of another amount payable under this Act or an increase in a refund of tax or of another amount under this Act, including a reduction, avoidance or deferral of the tax or of another amount that would be payable under this Act but for a tax agreement, and an increase in a refund of tax or of another amount under this Act that results from a tax agreement;

“transaction” includes an arrangement or event, and a series of transactions;

“transaction involving conditional remuneration”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means, subject to the second paragraph, a transaction in relation to which the remuneration of an adviser in respect of the transaction takes on any of the following forms:

(a)  all or part of the remuneration is conditional on obtaining a tax benefit resulting from the transaction or is determined, in whole or in part, on the basis of the tax benefit;

(b)  all or part of the remuneration may be refunded, in any manner whatever, if the expected tax benefit from the transaction fails to materialize;

(c)  all or part of the remuneration is earned by the adviser only after the expiry of a prescription period that is provided for in a law and that applies to the taxpayer’s taxation year or taxation years in which the transaction takes place;

“transaction with contractual protection” carried out by a taxpayer or a partnership of which a taxpayer is a member means a transaction in respect of which the taxpayer has protection consisting of an insurance (other than standard professional liability insurance) or another form of protection, including an indemnity, compensation or guarantee, and designed to

(a)  protect the taxpayer against a failure of the transaction to achieve any tax benefit from the transaction;

(b)  pay for or reimburse any amount incurred by the taxpayer as an expense, fee, tax, interest, penalty or similar amount in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction; or

(c)  help or represent the taxpayer, protect the taxpayer’s rights or provide any other form of assistance to the taxpayer in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction.

For the purposes of the definition of “transaction involving conditional remuneration” in the first paragraph, the following transactions are excluded:

(a)  (subparagraph repealed);

(a.1)  any request related to the payment to a taxpayer of an amount the taxpayer is deemed to have paid to the Minister on account of the taxpayer’s tax payable under this Part for a taxation year;

(b)  any request related to the analysis and review of an amount of interest payable by a taxpayer under this Act, following an assessment, a reassessment or an additional assessment for a taxation year;

(c)  any request related to the review of a fiscal return of a taxpayer for a taxation year following its filing under this Act; and

(d)  a transaction in respect of which an agreement has been entered into with a person who is a member of a professional order and under which the result obtained by the person is one of the factors taken into consideration in determining the person’s remuneration, in accordance with a provision of the code of ethics adopted by the professional order under the authority of which the person practises the profession.

For the purposes of the definition of “confidential transaction” in the first paragraph, it is understood that an undertaking of confidentiality towards other persons does not include a clause providing that an adviser’s professional liability exists only towards the adviser’s client and according to which a third party may not, for that party’s own purposes, rely on the opinion given by the adviser to the client.

For the purposes of this Book, in relation to a transaction determined by the Minister under the definition of “specified transaction” in the first paragraph, the Minister also determines and publishes in the Gazette officielle du Québec which taxpayers will be required to disclose a specified transaction in accordance with section 1079.8.6.2 and which will be the partnerships whose members will be subject to that obligation, if applicable, as well as the day from which the obligation to disclose specified transactions will apply.

The obligations provided for in this Book apply in respect of a specified transaction only if the carrying out of the specified transaction begins after the date of publication in the Gazette officielle du Québec of the transaction determined by the Minister to which the specified transaction relates; in that respect, section 1.5 does not apply for the purpose of determining the date on which a specified transaction begins to be carried out.

2010, c. 25, s. 189; 2017, c. 1, s. 353; 2020, c. 16, s. 165; 2022, c. 23, s. 125.

2020-09-24

1079.8.1. In this Book,

“adviser” in respect of a transaction means a person or partnership that provides help, assistance or advice regarding the design or implementation of the transaction, or that commercializes or promotes it;

“confidential transaction”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means a transaction under which the taxpayer or partnership retained the services of an adviser in respect of the transaction and under which the contract between the taxpayer and the adviser or between the partnership and the adviser, as the case may be, includes, in relation to the transaction, an undertaking of confidentiality of the taxpayer or partnership towards other persons or towards an income taxation authority in Canada or elsewhere;

“promoter” has the meaning assigned by section 1079.9;

“specified transaction” carried out by a taxpayer or a partnership means a transaction whose form and substance of the facts specific to the taxpayer or the partnership are significantly similar to the form and the substance of the facts of a transaction determined by the Minister and published in the Gazette officielle du Québec;

“tax benefit” means a reduction, avoidance or deferral of the tax or of another amount payable under this Act or an increase in a refund of tax or of another amount under this Act, including a reduction, avoidance or deferral of the tax or of another amount that would be payable under this Act but for a tax agreement, and an increase in a refund of tax or of another amount under this Act that results from a tax agreement;

“transaction” includes an arrangement or event, and a series of transactions;

“transaction involving conditional remuneration”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means, subject to the second paragraph, a transaction in relation to which the remuneration of an adviser in respect of the transaction takes on any of the following forms:

(a)  all or part of the remuneration is conditional on obtaining a tax benefit resulting from the transaction or is determined, in whole or in part, on the basis of the tax benefit;

(b)  all or part of the remuneration may be refunded, in any manner whatever, if the expected tax benefit from the transaction fails to materialize;

(c)  all or part of the remuneration is earned by the adviser only after the expiry of a prescription period that is provided for in a law and that applies to the taxpayer’s taxation year or taxation years in which the transaction takes place;

“transaction with contractual protection” carried out by a taxpayer or a partnership of which a taxpayer is a member means a transaction in respect of which the taxpayer has protection consisting of an insurance (other than standard professional liability insurance) or another form of protection, including an indemnity, compensation or guarantee, and designed to

(a)  protect the taxpayer against a failure of the transaction to achieve any tax benefit from the transaction;

(b)  pay for or reimburse any amount incurred by the taxpayer as an expense, fee, tax, interest, penalty or similar amount in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction; or

(c)  help or represent the taxpayer, protect the taxpayer’s rights or provide any other form of assistance to the taxpayer in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction.

For the purposes of the definition of “transaction involving conditional remuneration” in the first paragraph, the following transactions are excluded:

(a)  (subparagraph repealed);

(b)  any request related to the analysis and review of an amount of interest payable by a taxpayer under this Act, following an assessment, a reassessment or an additional assessment for a taxation year;

(c)  any request related to the review of a fiscal return of a taxpayer for a taxation year following its filing under this Act, unless all or part of the request pertains to an amount the taxpayer is deemed to have paid to the Minister on account of the taxpayer’s tax payable under this Part for a taxation year; and

(d)  a transaction in respect of which an agreement has been entered into with a person who is a member of a professional order and under which the result obtained by the person is one of the factors taken into consideration in determining the person’s remuneration, in accordance with a provision of the code of ethics adopted by the professional order under the authority of which the person practises the profession.

For the purposes of the definition of “confidential transaction” in the first paragraph, it is understood that an undertaking of confidentiality towards other persons does not include a clause providing that an adviser’s professional liability exists only towards the adviser’s client and according to which a third party may not, for that party’s own purposes, rely on the opinion given by the adviser to the client.

For the purposes of this Book, in relation to a transaction determined by the Minister under the definition of “specified transaction” in the first paragraph, the Minister also determines and publishes in the Gazette officielle du Québec which taxpayers will be required to disclose a specified transaction in accordance with section 1079.8.6.2 and which will be the partnerships whose members will be subject to that obligation, if applicable, as well as the day from which the obligation to disclose specified transactions will apply.

The obligations provided for in this Book apply in respect of a specified transaction only if the carrying out of the specified transaction begins after the date of publication in the Gazette officielle du Québec of the transaction determined by the Minister to which the specified transaction relates; in that respect, section 1.5 does not apply for the purpose of determining the date on which a specified transaction begins to be carried out.

2010, c. 25, s. 189; 2017, c. 1, s. 353; 2020, c. 16, s. 165.

2017-02-08

1079.8.1. In this Book,

“adviser” in respect of a transaction means a person or partnership that provides help, assistance or advice regarding the design or implementation of the transaction, or that commercializes or promotes it;

“confidential transaction”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means a transaction under which the taxpayer or partnership retained the services of an adviser in respect of the transaction and under which the contract between the taxpayer and the adviser or between the partnership and the adviser, as the case may be, includes, in relation to the transaction, an undertaking of confidentiality of the taxpayer or partnership towards other persons or towards an income taxation authority in Canada or elsewhere;

“tax benefit” means a reduction, avoidance or deferral of the tax or of another amount payable under this Act or an increase in a refund of tax or of another amount under this Act, including a reduction, avoidance or deferral of the tax or of another amount that would be payable under this Act but for a tax agreement, and an increase in a refund of tax or of another amount under this Act that results from a tax agreement;

“transaction” includes an arrangement or event, and a series of transactions;

“transaction involving conditional remuneration”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means, subject to the second paragraph, a transaction in relation to which the remuneration of an adviser in respect of the transaction takes on any of the following forms:

(a)  all or part of the remuneration is conditional on obtaining a tax benefit resulting from the transaction or is determined, in whole or in part, on the basis of the tax benefit;

(b)  all or part of the remuneration may be refunded, in any manner whatever, if the expected tax benefit from the transaction fails to materialize;

(c)  all or part of the remuneration is earned by the adviser only after the expiry of a prescription period that is provided for in a law and that applies to the taxpayer’s taxation year or taxation years in which the transaction takes place;

“transaction with contractual protection” carried out by a taxpayer or a partnership of which a taxpayer is a member means a transaction in respect of which the taxpayer has protection consisting of an insurance (other than standard professional liability insurance) or another form of protection, including an indemnity, compensation or guarantee, and designed to

(a)  protect the taxpayer against a failure of the transaction to achieve any tax benefit from the transaction;

(b)  pay for or reimburse any amount incurred by the taxpayer as an expense, fee, tax, interest, penalty or similar amount in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction; or

(c)  help or represent the taxpayer, protect the taxpayer’s rights or provide any other form of assistance to the taxpayer in the course of a dispute with a tax authority in Canada or elsewhere in respect of a tax benefit from the transaction.

For the purposes of the definition of “transaction involving conditional remuneration” in the first paragraph, the following transactions are excluded:

(a)  (subparagraph repealed);

(b)  any request related to the analysis and review of an amount of interest payable by a taxpayer under this Act, following an assessment, a reassessment or an additional assessment for a taxation year;

(c)  any request related to the review of a fiscal return of a taxpayer for a taxation year following its filing under this Act, unless all or part of the request pertains to an amount the taxpayer is deemed to have paid to the Minister on account of the taxpayer’s tax payable under this Part for a taxation year; and

(d)  a transaction in respect of which an agreement has been entered into with a person who is a member of a professional order and under which the result obtained by the person is one of the factors taken into consideration in determining the person’s remuneration, in accordance with a provision of the code of ethics adopted by the professional order under the authority of which the person practises the profession.

For the purposes of the definition of “confidential transaction” in the first paragraph, it is understood that an undertaking of confidentiality towards other persons does not include a clause providing that an adviser’s professional liability exists only towards the adviser’s client and according to which a third party may not, for that party’s own purposes, rely on the opinion given by the adviser to the client.

2010, c. 25, s. 189; 2017, c. 1, s. 353.

2010-10-27

1079.8.1. In this Book,

“adviser” in respect of a transaction means a person or partnership that provides help, assistance or advice regarding the design or implementation of the transaction, or that commercializes or promotes it;

“confidential transaction”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means a transaction under which the taxpayer or partnership retained the services of an adviser in respect of the transaction and under which the contract between the taxpayer and the adviser or between the partnership and the adviser, as the case may be, includes, in relation to the transaction, an undertaking of confidentiality of the taxpayer or partnership towards other persons or towards an income taxation authority in Canada or elsewhere;

“tax benefit” means a reduction, avoidance or deferral of the tax or of another amount payable under this Act or an increase in a refund of tax or of another amount under this Act, including a reduction, avoidance or deferral of the tax or of another amount that would be payable under this Act but for a tax agreement, and an increase in a refund of tax or of another amount under this Act that results from a tax agreement;

“transaction” includes an arrangement or event, and a series of transactions;

“transaction involving conditional remuneration”, carried out by a taxpayer or by a partnership of which a taxpayer is a member, means, subject to the second paragraph, a transaction in relation to which the remuneration of an adviser in respect of the transaction takes on any of the following forms:

(a)  all or part of the remuneration is conditional on obtaining a tax benefit resulting from the transaction or is determined, in whole or in part, on the basis of the tax benefit;

(b)  all or part of the remuneration may be refunded, in any manner whatever, if the expected tax benefit from the transaction fails to materialize;

(c)  all or part of the remuneration is earned by the adviser only after the expiry of a prescription period that is provided for in a law and that applies to the taxpayer’s taxation year or taxation years in which the transaction takes place.

For the purposes of the definition of “transaction involving conditional remuneration” in the first paragraph, the following transactions are excluded:

(a)  any request related to the payment to a taxpayer of an amount the taxpayer is deemed to have paid to the Minister on account of tax payable under this Part for a taxation year;

(b)  any request related to the analysis and review of an amount of interest payable by a taxpayer under this Act, following an assessment, a reassessment or an additional assessment for a taxation year;

(c)  any request related to the review of a fiscal return of a taxpayer for a taxation year following its filing under this Act; and

(d)  a transaction in respect of which an agreement has been entered into with a person who is a member of a professional order and under which the result obtained by the person is one of the factors taken into consideration in determining the person’s remuneration, in accordance with a provision of the code of ethics adopted by the professional order under the authority of which the person practises the profession.

For the purposes of the definition of “confidential transaction” in the first paragraph, it is understood that an undertaking of confidentiality towards other persons does not include a clause providing that an adviser’s professional liability exists only towards the adviser’s client and according to which a third party may not, for that party’s own purposes, rely on the opinion given by the adviser to the client.

2010, c. 25, s. 189.