Issue

The Government of Quebec is seeking to administer a single tax return in the province of Quebec to include both Quebec and federal taxes.

Things to consider

• The Canada Revenue Agency (CRA) has a long history of collaborating with Revenu Québec, including sharing information and best practices for compliance purposes and to ensure that tax filers receive the best service experience possible
• Under the tax collection agreements (TCAs) between the federal government and the provincial and territorial governments, the CRA collects and administers income taxes for all provinces and territories, with the exception of Quebec's personal and corporate taxes and Alberta's corporate tax
• While the CRA is responsible for provincial and territorial tax regime administration, the negotiation and signature of the TCAs are led by the federal Minister of Finance with their provincial and territorial counterparts

Next steps

• CRA officials are currently working with their Revenu Québec counterparts to implement a common action plan aimed at simplifying the filing experience for Quebec taxpayers
• Both organizations are taking a coordinated approach to reduce the administrative burden on taxpayers, representatives and reporting third parties

Key messages

• The CRA is continually exploring ways to reduce the administrative burden on all tax filers – including those in Quebec

Background

• In May 2018, the National Assembly of Quebec adopted a motion asking "the Quebec government and the federal government to implement a single tax return for Quebec taxpayers, to be filed with Revenu Québec, while preserving Quebec's fiscal autonomy"
• In January 2019, newly elected Quebec Premier, François Legault, confirmed that his government supported the National Assembly's motion and reiterated the request to the Prime Minister
• In January 2019, the Government of Canada indicated that it was not supportive of a transfer of administration to Quebec, but was open to discussions on reducing the burden for Quebecers dealing with two tax administrations
• In February 2020, the Bloc Québécois introduced Bill C-224, which would authorize the Government of Canada to enter into an agreement with the government of a province under which the provincial government would collect the federal personal and corporation income taxes on behalf of the Government of Canada
• In April 2021, Bill C-224 was defeated
• The Public Service Alliance of Canada and the Professional Institute of Public Service of Canada are following this issue closely due to the potential impact on their members who work for the CRA