Update on: "Aggressive tax planning schemes"

On Thursday October 15, 2009 the Minister of Finance of Quebec announced measures to counter "aggressive tax planning schemes".
 
This blurb will review the measures as they relate to donations. The first new measure requires taxpayers to disclose to Revenue Quebec significant tax saving plans, if the plans are subject to confidentiality agreements (if the advisor restricts the taxpayer from disclosing the plan to others) or if the advisors receive remuneration for their advice contingent on the plans working and a tax benefit being realized.
 
We are not aware of donation tax shelters which would be caught by this disclosure requirement. The ones making the rounds now (mining flow-throughs) are not confidential and the fees paid to the promoters are not contingent.
 
In addition, new legislation strengthens Quebec's ability to attack GAARable transactions in 3 ways by:

1. Expanding the Quebec Taxation Act's definition of GAAR
2. Extending the statute bar period for GAAR assessments by three years and
3. Imposing new penalties on transactions subject to GAAR. 

Obviously, donations which are part of a series of transactions to which GAAR applies would be subject to these new rules.