Review of Bill 78 on corporate transparency : The Quebec CPA Order wants to give the Registraire des entreprises teeth
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Montreal, February 17, 2021 – Before the parliamentary commission reviewing Bill 78 on the transparency of enterprises, the Quebec CPA Order reiterated its support for the various measures put forth by the government in recent years to combat financial and fiscal malfeasance and to ensure ethical business practices among companies doing business in Quebec.
Quebec CPA Order President and CEO, Geneviève Mottard, CPA, CA, states: “Quebec has introduced stricter requirements and penalties for mandatory disclosures as a way to combat tax evasion and aggressive tax planning, money laundering, and organized crime. This is extremely positive. Right now, it needs to be stated loud and clear that Quebec does not mess around when it comes to corporate transparency among companies wanting to do business here, nor when it comes to the reliability of the information they send to the enterprise register.”
As part of this initiative, the Quebec CPA Order insists on the need to adopt clear legislative and regulatory provisions, to implement a rigorous declaration and verification process, and to provide the Registraire des entreprises with the means to truly take action and punish those who contravene.
In brief, the Order recommends:
- Setting the ownership threshold at 10% rather than 25% for shares held by a natural person so as to determine who has actual control over a company
- Making the administrative and penal sanctions provided for in the Act respecting the legal publicity of enterprises much stricter
- Broadening the Registraire des entreprises’ inspection and investigation capacities
The enterprise register is the ideal vehicle for improving corporate transparency and for helping prevent and fight tax evasion, money laundering, and corruption. However, to achieve these ends, it is imperative not only to expand the list of information that must now be disclosed, but also to provide the Registraire with the resources it requires to validate this information and to take action and clamp down on violations.
About the Quebec CPA Order
The Ordre des comptables professionnels agréés du Québec has 40,000 members and 5,000 future CPAs, making it the third largest professional order in Quebec. The Order ensures the protection of the public and the visibility of the profession. It represents all areas of expertise of the accounting profession, including financial reporting, management accounting, strategy and governance, audit and assurance, finance and taxation.
See the brief submitted by the Order, in French.
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Information:
Fanie St-Pierre
Advisor, Public Relations and Societal Communications
Quebec CPA Order
T. 514 288-3256 [2763] 1 800 363-4688
relationsmedias@cpaquebec.ca