ARE YOU SUBJECT TO QUEBEC INCOME ATTESTATION REQUIREMENTS?

Under the Taxation Act (the ” Act “), certain construction contracts between a contractor and a subcontractor require an attestation from Revenu Québec confirming that the subcontractor complies with Québec tax laws and has no outstanding accounts with Revenu Québec (the ” Attestation “). Contracts covered by the Act :

  • any contract entered into after February 29, 2016 between a contractor and a subcontractor and providing for the performance of construction work requiring a license under the Building Act; and
  • the total cost of the contract concluded and/or that of previous contracts concluded between the same contractor and subcontractor in the same calendar year is greater than or equal to $25,000 (before taxes).

Who needs to obtain Attestation?

  • The subcontractor must, between the date of submission of the contract and the 7th day following the date of commencement of the work resulting therefrom (the ” Work Commencement Period“), hold an Attestation and deliver a copy thereof to the contractor.

The contractor must :

  1. during the Work Commencement Period, obtain a copy of the Certification from the subcontractor and ensure that it is valid; and
  2. no later than the 10th day following the start date of the work, verify its authenticity with Revenu Québec (collectively, the ” Contractor’s Obligations “).

Under the Act, a contractor is defined as ” any person who causes to be carried out, in whole or in part, construction work for which he must hold a license from the Régie du Bâtiment du Québec “. The Building Act states that ” a person who offers a building or civil engineering work for sale or exchange is presumed to be a contractor , unless he proves that the construction work on the building or work was not carried out for the purpose of sale or exchange “. By combining the definition of contractor under the Building Act and the provisions of the Act, it should be understood that the owner of a condominium project is assimilated to a contractor and is therefore subject to the Obligations of a contractor. These new obligations must therefore be reflected in any construction contract, partnership agreement or documentation relating to construction financing.

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