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Quebec residents who are required to pay income tax by instalments must make their third quarterly instalment for 2019 on or before September 15, 2019. Most individuals who are subject to the instalment payment requirement will have received an Instalment Reminder from Revenu Québec.

Information on the instalment payment requirement, including the calculation of a payment amount and how to make a payment can be found on the Revenu Québec website at https://www.revenuquebec.ca/en/citizens/income-tax-return/paying-a-balance-due-or-receiving-a-refund/instalment-payments/ and https://www.revenuquebec.ca/documents/en/publications/in/IN-105-V%282019-01%29.pdf.

The federal government provides a savings vehicle, the Registered Education Savings Plan (RESP), which enables parents to save for their children’s education on a tax-advantaged basis. Residents of Quebec who participate in an RESP may also receive a provincial refundable tax credit through the Quebec Education Savings Incentive (QESI).

At the end of 2018, the federal government announced a number of changes with respect to RESPs, which will take effect as of September 1, 2019. Most of those changes are in the nature of anti-avoidance rules which seek to prevent misuse of the program.

The Quebec government has announced that it will be adopting the federal changes for purposes of the QESI, with such changes to also be effective as of September 1, 2019. Those changes, as they will apply to the provincial program, are outlined in a new Information Bulletin (2019-8), which can be found on the Quebec Finance site at www.finances.gouv.qc.ca/documents/bulletins/en/BULEN_2019-8-a-b.pdf.

Quebec taxpayers who are employed have income tax deducted from their paycheques by their employer and, in some circumstances, the deductions made can exceed the individual’s actual tax owing for the year. When that occurs, the employee can request to have such source deductions reduced in order to more accurately reflect their actual tax liability for the year.

To do so, it’s necessary to file a prescribed form with Revenu Québec. Once the request is approved, Revenu Québec will authorize the individual’s employer to reduce income tax deductions made at source from the employee’s paycheque.

Revenu Québec recently updated and re-issued the form to be used by taxpayers in seeking a reduction in source deductions. That updated form can be found on the Revenu Québec website at https://www.revenuquebec.ca/fr/services-en-ligne/formulaires-et-publications/details-courant/tp-1016/.

Revenu Québec has issued a reminder to taxpayers on how to identify phishing attempts in telephone calls, e-mails, or texts which purport to be from the Agency. That reminder notes that the following rules apply to any of its communications with taxpayers.

• Revenu Québec never requests personal information by email or text (social insurance number, health insurance number, driver's licence number, passport number, or password).
• Revenu Québec never leaves telephone messages that include confidential information.
• Revenu Québec never communicates personal information concerning a taxpayer to any other person unless it is sure that the person receiving the information is authorized to do so.

The Revenu Québec reminder can be found on its website at https://www.revenuquebec.ca/en/policies-and-instructions/security/phishing-scams-and-identity-theft/.

Revenu Québec has posted information on its website with respect to the preferential tax treatment provided for building renovation or alteration costs related to accessibility.

Such tax treatment is available to owners or lessees of buildings which are used more than half of the time to generate income from business or property, and eligible costs incurred to make such buildings more accessible can be deducted in the year they are incurred. Under general tax rules, such costs would otherwise be added to the capital cost of the building.

Details of the available deduction for accessibility-related renovation costs can be found on the Revenu Québec website at https://www.revenuquebec.ca/en/press-room/news/details/163422/2019-05-06/.

The province of Quebec levies and pays interest on underpayments and overpayments of tax at rates prescribed by statute and set at the beginning of each calendar quarter. The rates to be levied and paid for the first three quarters of 2019 are as follows.

                                                       Debit Rate                      Credit Rate

January 1 – March 31, 2019                   7%                                  2%

April 1 – June 30, 2019                         7%                                   2%

July 1 – September 30, 2019                 7%                                  1.8%

A listing of debit and credit rates levied and paid by the province since 2001 can be found on the Revenu Québec website at https://www.revenuquebec.ca/en/fair-for-all/ensuring-tax-compliance/penalties-and-interest/interest-rates-on-debts/ and https://www.revenuquebec.ca/en/fair-for-all/ensuring-tax-compliance/penalties-and-interest/interest-rates-on-refunds/.

The province of Quebec provides eligible seniors aged 70 and older with a refundable tax credit to help offset the cost of services needed to enable them to remain in their homes. That tax credit is equal to 35% of eligible expenses incurred, to a maximum credit of $6,825 per year. While the tax credit is claimable on the annual tax return each spring, seniors who are eligible for the credit can instead receive advance payments of that credit throughout the year.

Advance payments related to eligible services which are included in an individual’s rent or condominium fees are made monthly. Advance payments related to eligible services not included in rent or condominium fees are made within 30 days after the date the application is received by Revenu Québec. All advance payments of the credit are made by direct deposit.

More information on the home support services tax credit, and how to obtain advance payments of that credit can be found on the Revenu Québec website at https://www.revenuquebec.ca/en/citizens/tax-credits/tax-credit-for-home-support-services-for-seniors/.

In the 2019-20 Quebec Budget, the provincial government announced that an incentive would be provided to encourage businesses to hire and retain older workers. Businesses which do so will be entitled to a reduction in payroll taxes otherwise payable in respect of such workers.

The payroll taxes eligible for the incentive include Contributions to the Health Services Fund, the Québec Pension Plan, the Québec Parental Insurance Plan and the Commission des normes, de l'équité, de la santé et de la sécurité du travail. Eligible businesses will be able to claim a tax credit relating to such payroll taxes equal to 50% for workers aged 60 to 64, up to a maximum of $1,250 per worker and 75% for workers aged 65 and over, up to a maximum of $1,875 per worker.

The credit will be available beginning in 2019 and will be phased in over the subsequent four years. Details of the payroll tax incentive can be found in the 2019-20 provincial Budget papers, which are available at www.budget.finances.gouv.qc.ca/budget/2019-2020/en/documents/BudgetPlan_1920.pdf.

In this year’s Budget, the provincial government announced that it had undertaken a review of the financial assistance provided to parents of a handicapped child with exceptional care needs. As a result of the review, recommendations were made to ensure that eligibility for assistance be extended to families whose handicapped children require less direct care, but who remain somewhat dependent and need support.

The provincial government has issued a new Information Bulletin (2019-6) providing a comprehensive description of the changes that will be made. That information bulletin can be found on the Quebec Finance website at http://www.finances.gouv.qc.ca/documents/bulletins/en/BULEN_2019-6-a-b.pdf.

Residents of Quebec who pay provincial income tax by instalments must make their second instalment payment for the year on or before Monday June 17, 2019.

More information on the instalment payment system and on how instalment payments of 2019 provincial income tax can be made, is available on the Revenu Québec website at https://www.revenuquebec.ca/en/citizens/income-tax-return/paying-a-balance-due-or-receiving-a-refund/instalment-payments/making-instalment-payments/.