This measure applies to all Nominee agreements which: Parties to a nominative agreement therefore express their true intention in a secret treaty. These „secret contracts,“ also known as „pre-name“ contracts, are legal and common in the real estate sector. Under the bill, mandatory disclosure must be made by a mandatory form. The information to be disclosed is: (a) the date of the conclusion of the contract, b) the identity of the parties to the Nominee contract, c) a complete description of the facts of the transaction, which is sufficiently detailed to allow the Minister to analyze it and to have an adequate understanding of the tax consequences; (d) the identity of another person or entity for whom the transaction has tax consequences; and (e) other information that is required in the prescribed form, including a copy of the Nominasian agreement. The prescribed form (TP-1079. PN) is available on the RQ website and must be sent by recommended letter. In the event of non-supply of the information prescribed by the applicable deadline, the parties to the corresponding nominating agreement are jointly fined USD 1,000, plus an additional penalty of USD 100 per day, from the second day of the omission, up to a maximum of USD 5,000. In addition, if such a declaration is not submitted within the time limit, the statute of limitations for one fiscal year of a person party to the Nominee agreement is suspended with respect to the tax consequences arising from one or a series of transactions that take place this year and fall within the scope of the Nominee agreement. The usual three-year limitation period would therefore be suspended and would not apply to the parties until the corresponding nominating agreement had been announced. This suspension would allow the Minister to redefine taxes, interest and penalties, or any other amount, and to reassess, reassess or impose additional taxes for the tax year for the taxpayer concerned, despite the usual time frames. This is not a recurring obligation and the required form should only be submitted once.
Disclosure of an appointment agreement entered into by one of the parties to the agreement is deemed to have been made by all other parties. The form must be accompanied by a copy of the Nominee agreement.