Interpretation Revenu Québec TVQ. 16-30/R1 "Nominee Agreements" 9 December 2011

7. A nominee who fails to disclose, to the supplier of an immovable, the fact that the nominee is a mandatary is acting in the nominee's own name and becomes personally bound to the supplier to pay the considerationfor the supply (article 2157 C.C.Q.). The nominee thus becomes a recipient of the supply, within the meaning of section 1 of the AQST, along with the mandator (article 2160 C.C.Q.). 8. Where instead the nominee is a QST registrant, informs the supplier of the immovable of that fact and provides the nominee's own QST registration number to the supplier, the nominee, as recipient of the supply, is personally liable for payment of the QST in respect of the supply and for remittance of the QST to the Minister, unless the nominee discloses the mandate to Revenu Québec in the manner described in point 3 of this bulletin. ... 9. It should be noted that even where the nominee, as recipient of the supply of the immovable, is personally liable for payment of the QST, only the mandator can claim an input tax refund (ITR), under section 199 of the AQST, in respect of the acquisition of the immovable, if the mandator uses the immovable or makes a supply of it in the course of the mandator's commercial activities.

7. A nominee who fails to disclose, to the supplier of an immovable, the fact that the nominee is a mandatary is acting in the nominee's own name and becomes personally bound to the supplier to pay the consideration for the supply (article 2157 C.C.Q.). The nominee thus becomes a recipient of the supply, within the meaning of section 1 of the AQST, along with the mandator (article 2160 C.C.Q.).

2. A nominee agreement is a mandate by which the mandatary acts on behalf of the mandator, but gives the appearance of acting in the mandatary's own name. A nominee agreement is a lawful form of the contract of mandate.

3. Any person may hold property for another under a nominee agreement. To be valid, the agreement must have been entered into on or before the acquisition of the property and must comply with the mandate provisions of the C.C.Q. Furthermore, in order for a nominee agreement to be recognized for tax purposes, the mandator and the mandatary must disclose the existence of the agreement and reveal its content to Revenu Québec.

11. Where a nominee is entrusted with the management of an immovable by its owner and empowered to represent the owner for the purposes of entering into leases and collecting rents, which are juridical acts,

supplies of immovables made by way of lease through the nominee are considered to have been made by the owner of the immovable.