On September 24, the Quebec government committed to Bill 42 establishing mandatory advertising measures announced on May 17, 2019 for nominated conventions. The bill requires taxpayers who participate in a nominating agreement with tax consequences under the Provincial Tax Act to disclose certain information to the Revenue Quebec Tax Administration (revenues). It also includes members of a nominated partnership agreement. In the case of a limited partnership that is a party to a nominal agreement, the advertising obligation applies only to all of its partners and not to its sponsorships. The SAQ provided two examples of a situation in which the tax consequences persist after May 16, 2019 and where compliance with the new disclosure obligation is mandatory: the acquisition of a rental property or the accumulation of years for the purposes of the principal residence exemption. If the parties to the Nominee agreement do not provide the information prescribed within the current time frame, they will be punished for the duration of the omission with a fine of $1,000 and an additional penalty of $100 per day, up to a maximum of $5,000. In addition, non-disclosure may also result in the suspension of the limitation period with respect to the tax consequences of the Nominee agreement. In addition, the ASQ clarified that there was no obligation to disclose a nominating agreement if it was entered into by a person with a person linked to a financial institution`s application to finance the purchase of real estate for the personal use of the person, provided that the related person had not co-signed more than 50% of the fair market value of the property. In Quebec civil law, a nomine convention is a warrant by which the officer acts on behalf of the client, but allows others to believe that he is acting on his own behalf.

Nominee agreements concluded prior to that date, but for which "the tax consequences of the transaction or a series of transactions covered by the Nominee agreement" are ongoing on May 17, must be communicated to the revenue proceeds by December 23, 2020. According to the turnover, "tax consequences" are interpreted as consequences of income tax when tax sovereignty is Quebec.