Tremblay – Quebec Court of Appeal confirms that s. 56(2) applied to the free occupation by the taxpayer’s ex-spouse of a condo owned by a corporation indirectly controlled by him

The Quebec Court of Appeal confirmed that the taxpayer, who had agreed in connection with their separation to let his ex-spouse occupy, free of charge, a condo owned by a corporation controlled by him through a holding company, was taxable under the Quebec equivalent of s. 56(2). The Court rejected a submission that there could be no transfer of rights (or property) for such purposes in the absence of a lease between the ex-spouse and the corporation.

Neal Armstrong. Summary of Tremblay v. Agence du revenu du Québec, 2025 QCCA 783 under s. 56(2).