The ARQ assessed the appellant (9154-6093) for its failure to collect and remit QST on its transfer of a condo unit (Unit 54) to its shareholders (two spouses) in April 2009 for consideration of $567,000. One of the shareholders testified that the transfer was made to them for the purpose of obtaining mortgage financing on Unit 54 (which was received on the next day, and used for rental purposes) and that they had no intention of inhabiting the unit.
In accepting that the shareholders had acquired the unit as nominees and that 9154-6093 remained the actual owner, Alcindor JCQ stated (at paras. 123-124, TaxInterpretations translation):
[D]espite the assignment, 9154-6093 rented Unit 54 to third parties, declared the income from such rentals, and collected the taxes and remitted them to Revenu Québec. …
Just before the sale of the Unit in October 2019 [the shareholders] retroceded the building to 9154-6093, which collected and remitted the GST and QST [on the sale] … to Revenu Québec.
She further stated (at para. 129) that in light of this reporting of the 2019 sale:
[A]llowing Revenu Québec to recover QST on the 2009 transaction means that 9154-6093 is remitting QST twice on the same housing unit. … [T]his runs counter to both Revenu Québec's role and tax policy in this regard.