ORIGINAL TEXT IN FRENCH
International financial centre (IFC) Regime
Application for annual certificate
MFQ [DEMcert-AppCFI-F] 2003V11
General informationELIGIBILITY CONDITIONS
Pursuant to the provisions of the law regarding IFCs, an IFC means a business that satisfies the following conditions:
it is carried on by a corporation or partnership;
all the activities of which pertain to qualified international financial transactions (QIFT);
the management of the activities of which that lead to the completion of QIFT carried out in the course of the operations of the business is conducted entirely within the territory of the urban agglomeration of Montréal;
the activities of which are grouped together in one place within the territory of the urban agglomeration of Montréal;
the corporation or partnership holds a valid certificate in its regard issued by the Minister of Finance and the Economy.
TAX BENEFITS ASSOCIATED WITH IFC STATUS[1]
The following tax benefits may be granted to a corporation or partnership that operates an IFC:
a partial exemption from Québec income tax (deduction of 75% of income from the operation of the IFC)[2];
a partial exemption from the tax on capital (deduction of 75% of paid-up capital attributable to the activities of the IFC);
a partial exemption from the contribution to the Québec Health Services Fund (deduction of 75% of payroll attributable to the operation of the IFC).
General information
PROCEDURE FOR OBTAINING THE ANNUAL CERTIFICATE
To receive these tax benefits, a corporation or partnership that, during a fiscal year, holds a valid IFC qualification certificate issued in respect of one of its business, must apply to the Minister of Finance and the Economyof Québec for an annual certificate regarding such business for such fiscal year.
The Minister shall issue an annual certificate to the corporation or partnership if, for the fiscal year, the qualification certificate issued regarding the business was valid and he is of the opinion that its activities pertained to qualified international financial transactions.
To obtain an annual certificate for a fiscal year, a corporation or partnership that operates an IFC must apply for it by completing the French version of the attached form and appending the documents required in section 12.
The analysis of the application may also include a meeting between a representative of the Department and the person responsible for the application.
FEES FOR ISSUING THE ANNUAL CERTIFICATE
The application for annual certificate must be accompanied by a cheque payable to the Minister of Finance of Québec for the fees required to analyze the file. The fee schedule applicable can be viewed at the following address:
ANNUAL IFC CONTRIBUTION FEE
The operator of the IFC must pay an annual contribution to the Fonds du centre financier de Montréal of $10 000 for the first calendar year and $3000 for subsequent years. The contribution is payable by cheque made out to the Minister of Finance of Québec no later than the last day of February of the following calendar year.To obtain further information on annual certificate applications or the general eligibility conditions for tax benefits relating to the IFC regime, please contact:
Ministère des Finances et de l’Économie du Québec
Gestion des mesures relatives aux CFI
380, rue Saint-Antoine Ouest, bureau 6100
Montréal (Québec) H2Y 3X7
Telephone:514499-6569
Fax:514873-3915
Email :
Website:
1
IFC Regime (November 2013)
/International Financial Centre (IFC) Regime
Application for annual certificateNote to the reader
The information you provide on this form is collected by the Ministère des Finances et de l’Économie du Québec (MFEQ) and is used to verify the eligibility of your activities for the IFC regime.Accordingly, the requested information must be provided and failure to do so may cause your application to be denied.
This information is considered confidential and can only be sent to third parties with the consent of the person who provided it, as stipulated in the Act respecting access to documents held by public bodies and the protection of personal information (R.S.Q., c. A-2.1).Only authorized staff of the MFEQ has access to the information provided.
However, some information, if necessary for the enforcement of tax legislation, may be disclosed to Revenu Québec, without the consent of the person who provided it.
The information provided may also be used by the MFEQ for research, assessment, study, investigation, statistical or cost forecasting purposes or in the course of a survey.The applicant corporation must notify the MFEQ in writing, as soon as possible, of any significant change in the information provided.Such notification must be sent to: Ministère des Finances et de l’Économie du Québec,Gestion des mesures relatives aux CFI, 380, rue Saint-Antoine Ouest, bureau 6100, Montréal (Québec) H2Y 3X7.
- General information on the IFC
Name of the corporation that operates the IFC (business name)
Address of the corporation that operates the IFC
City / Province / Country / Postal code / Website
Name of the IFC ( Same as the corporation. If different, enter the name below)
Address of the IFC ( Same as the corporation. If different, enter the address below)
City / Province / Postal code / Website
Montréal / Québec
Registration number assigned by Revenu Québec to the corporation operating the IFC / Québec business number (NEQ)
of the corporation operating the IFC
- Head of the IFC[3]
Mr. / First name / Last name
Ms.
Title
Telephone / Fax / Email
Ext.
- Person responsible for this application (if different from the head of the IFC)
Mr. / First name / Last name
Ms.
Title
Telephone / Fax / Email
Ext.
- IFC certificate number
- Effective date of the IFC certificate
year/ month/day
- Fiscal year covered by this application
From : / To :
year/ month/day / year/ month/day
- Registration with a regulatory body (to be completed only by investment dealers and advisers)
Is the corporation registered with regulatory bodies (example: AMF, OSC, SEC,etc.)?
yes / no
If yes, with which ones and what kind of registration?
If not, is the corporation exempted from registering with these bodies?
yes / no
- Shareholders
Please enter the names of the specified shareholders[4] of the corporation operating the IFC
Name of specified shareholder5 / Percentage of shares held
%
%
%
%
%
%
%
Please enter the names of the shareholders having direct or indirect control of the corporation operating the IFC
Name of the shareholder / Country of origin
- Qualification of international financial transactions
MFEQ authorities will study the information provided in this section in order to rule on the qualification of the international financial transactions the IFC carried out during the fiscal year covered by this application.
You will have to identify the categories of international financial transactions carried out by the IFC business, to specify the context in which they were carried out and lastly, to sketch and to describe the transaction process by which they were carried out.
The following four-step process must be followed rigorously:
Step 1: / From the list of 25 categories of qualified international financial transactions (QIFT) stipulated in section 7 of the Act respecting international financial centres, indicate those carried out by the IFC during the fiscal year covered by this application.
Step 2: / For each category of QIFT selected in step 1, download and complete the most recent version of the correspondingsummary sheet in document Appendix 1 that accompanies theapplication forannual certificate form on the MFQ website.
Step 3: / Attach a diagram and a detailed description of the transaction process specific to each category or sub-category of activity carried out by the IFC to each summary sheet completed in step 2.
Step 4: / Confirm that all theeligibilityconditions stipulated by law regarding the IFC regime have been satisfied.
Instructions for each of these steps follow.
STEP 1: / Referring to the list below, indicate each category of QIFT carried out by the IFC
7.01 / Transaction on outstanding securities or securities distribution / 7.14 / Trust services
7.02 / Operation of a clearing house / 7.15 / Factoring services
7.03 /
Securities advising or portfolio management
/7.16
/ Leasing services7.04 / Deposit of money / 7.17 / Organization of a qualified investment fund
7.05 / Lending of money / 7.18 / Administration of units of a qualified investment fund
7.06 / Lending or borrowing of money between corporations operating an IFC / 7.19 / Management of a qualified investment fund
7.07 / Acceptance or issuance of a letter of credit[5] / 7.20 / Distribution of units of a qualified investment fund
7.08 / Financing or refinancing by means of a bill of exchange / 7.21 / Cash management
7.09 / Execution of foreign exchange transactions / 7.22 / Back office activities for a third party
7.10 / Financial packaging services / 7.23 / Documentary collection[6]
7.11 / Financial engineering services / 7.24 / Activities performed under the Québec Immigrant Investor Program
7.12 / Damage insurance brokerage services / 7.25 / Discount operation carried out regarding a letter of credit or a commercial instrument
7.13 / Reinsurance of a risk arising from a damage insurance contract
STEP 2: / Summary sheets
For each category of QIFT selected in step 1, carried out by the IFC and for which application for annual certification is being made, please complete and enclose the corresponding French summary sheet.
The French summary sheetsmust be downloaded from:
STEP 3: / Diagram and description of the transaction process
Please attach a diagram and a detailed description of the transaction process specific to each category or sub-category of QIFT carried out by the IFC to each summary sheet – annual certificate completed in step 2. Clearly describe all the steps necessary to carry out the transactions.
The diagram and description of the transaction process must cover, when applicable to your activities, all the steps listed below. Provide a detailed description of these steps and specify by whom[7] and where they were carried out. This description must cover the following points, among others:
Initiation and negotiation in relation to the category of QIFT to be carried out;
Carrying out of the QIFT;
Description of the remuneration mode of transactionsspecific to each category or sub-category of QIFT carried out by the IFC;
Back office services in relation to the category of QIFT carried out, in particular:
registration of QIFT,
settlement, delivery and clearing arising from QIFT,
record-keeping, accounting and production of required statements or reports,
compliance,
customer services.
Follow-up, control and responsibility in relation to the risks incurred;
Selection and updating of the computer system on which QIFT are carried out.
STEP 3 (cont’d) : / Non-arm’s length relation
Did the operator of the IFC carry out, during the fiscal year covered by this application, QIFT for a related person?[8]
No
Yes / Please identify the person and indicate the nature of the transactions that the operator of the IFC carried out
for him.
If more space is required, append a document with the additional information and indicate the number of the correspondingstep.
STEP 4: / Declaration of complianceFor the fiscal year covered by this application, has the business that constitutes the IFC satisfied the following conditions stipulated by law regarding the IFC regime?
- It was operated by a corporation or a partnership.
yes / no
- All its activities pertained to QIFT.
yes / no
- The management of the activities of which that lead to the completion of QIFT carried out in the course of the operations of the business was conducted entirely within the territory of the urban agglomeration of Montréal.
yes / no
- Its activities were grouped together in one place[9] within the territory of the urban agglomeration of Montréal.
yes / no
If, for the fiscal year covered by this application, one or more conditions were not satisfied, in whole or in part, please give the reason:
If more space is required, append a document with the additional information and indicate the number of the correspondingstep.
- Documents required to process the application
The head of the IFC or the person responsible for the application must be sure to enclose with the application all the required documents by completing and signing the control sheet on the following page (Section 12).
For faster processing of your application, be sure that this sheet is duly completed and signed.
- Signature of the head of the IFC
I, the undersigned, declare, as head of the IFC, that during the fiscal year ended
, / carried out
year/ month/ day / Name of the IFC
activities bearing on qualified international financial transactions for which in particular it obtained its qualification certificate as an international financial centre.
Upon request, I shall provide the Ministère des Finances et de l’Économie du Québec, Revenu Québec, or their representatives, with any document concerning this annual certificate application or any matter relating to the constitution of the IFC and its operation.
I understand that the annual certificate regarding eligible activities will be issued by the Minister upon receipt of this form together with the required documents and a cheque payable to the Minister of Finance of Québec in payment of the fees associated with its issuance.
I also understand that under the provisions of the law regarding IFCs, the Minister may retroactively revoke any qualification certificate or annual certificate issued under false pretencesor when justified by information or documents brought to his attention.
Lastly, I undertake to advise, in writing and as soon as possible, the Ministère des Finances et de l’Économie du Québec, of any material change that may arise regarding the information provided[10].
Signature of the head of the IFC / Date
Name (print)
Title
- Control sheet: documents that must be sent to the Department
1.Mail two copies of the following documents to:
Ministère des Finances et de l’Économie du Québec
Gestion des mesures relatives aux CFI
380, rue Saint-Antoine Ouest, bureau 6100
Montréal (Québec) H2Y 3X7
Place a checkmark next to the documents being mailed: / For use by the
Department
Application form duly completed and signed;
Summary sheet duly completed for each category of QIFT you report that you have carried out (see Steps 1, 2 and 3);
Diagram and detailed description of the transaction process for each summary sheet submitted;
Recent detailed organization chart of the IFC;
The most recent financial statements of the corporation that operates the IFC;
The financial statements of the IFC (income statement at a minimum) for the fiscal year covered by this application or those enclosed with the latest tax return, as the case may be;
Cheque payable to the Minister of Finance of Québec for the fees required to analyze the file. The fee schedule can be viewed at the following address:
2.Send the following documents electronically to the following address:
.
Electronic copy (Word) of the application form;
Electronic copy (Word) of each summary sheet.
Note that the original copy of the form duly completed, signed and sent by mail is considered the official application.
If it is impossible for you to send us all these documents at the same time as the application, please explain why and indicate the date you expect to send them to us.
I declare that I have enclosed all the required documents with the application or explained why some, if any, are missing.
Date / Signature of the head of the IFC or of the person responsible for the application
1
IFC Regime (November 2013)
[1] This document summarizes the benefits associated with the IFC regime. For complete information, refer to the website of the Ministère des Finances et de l’Économie at:
[2] The partial exemption from Québec income tax is different for a partnership. For complete information, refer to the website of the Ministère des Finances et de l’Économie.
[3] Name of the responsible person designated by resolution of the board of directors of the corporation operating the IFC.
[4] In general, a "specified shareholder" of a corporation, as this expression is understood in the Taxation Act, is, in particular, a shareholder holding at least 10% of a class of shares issued by the corporation.
[5] For discount transactions carried out consecutively or incidentally to the acceptance of a letter of credit, complete summary sheet 7.25.
[6] For discount transactions carried out consecutively or incidentally to a documentary collection transaction, complete summary sheet 7.25.
[7] If certain activities were carried out by third parties or outside the IFC, you must provide the necessary details.
[8] For example, a QIFT carried out by an IFC for its head office, a subsidiary or a sister company constitutes a transaction between related persons.
[9] In general, the expression “in one place” means at the same civic address.
[10]The head of the IFC is required to inform the Department of any significant change in the affairs of the IFC, in particular: change of address or ownership, restructuring, the addition or loss of activities or personnel, how QIFTs are conducted, etc.