2023 QCCQ 9230, 2023 QCCQ 9230

Agence du revenu du Québec c. 10892041 Canada inc. 2023 QCCQ 9230 COUR OF QUÉBEC CANADA PROVINCE OF QUÉBEC DISTRICT OF MONTRÉAL LOCALITY OF MONTRÉAL « Criminal and penal division » N°: 500-61-584168-232 DATE: November 22, 2023 ______________________________________________________________________ BY THE HONOURABLE GENEVIEVE CLAUDE PARAYRE PRESIDING JUSTICE OF THE PEACE ______________________________________________________________________ AGENCE DU REVENU DU QUÉBEC Prosecution v. 10892041 CANADA INC.

Defendant ______________________________________________________________________ JUDGMENT ______________________________________________________________________ [ 1 ] On August 22, 2022, inspector Moncorger finds that the [...] (the apartment) in Montréal is offered by hosts Andrea and Loic for short-term rental on the Airbnb website. [ 2 ] Her research led her to conclude that the defendant’s corporation (the defendant) is the lessor of the apartment and that it does not hold a certificate to operate a tourist accommodation establishment.

Consequently, a statement of offence is issued to the defendant, as lessor, for operating or giving reason to believe that it operates a tourist lodging establishment without holding a validly issued attestation. [ 3 ] The defendant admits having signed a lease with the owner of the apartment. However, on March 6, 2022, it sublets the apartment to Gestion Lion Gratte-ciel Inc. for a 3-year period starting April 1, 2022.

To this end, a copy of the lease signed by the parties is submitted as well as proof of payment of rent for the months of July, August, and September 2022. [ 4 ] The defendant confirms that it did not inform the owner of the apartment of the sublease and indicates that the contract did not include any specific provisions regarding the rules governing tourist accommodation. [ 5 ] The defendant argues that it bears no obligation with respect to the subtenant’s use of the apartment and should not be held liable for its actions.

In its view, the prosecution has failed to demonstrate, beyond a reasonable doubt, that it’s the perpetrator of the infraction. [ 6 ] The prosecution doesn’t question the credibility and reliability of the defendant’s representative’s testimony but argues that the defendant’s failure to obtain the owner’s consent to sublet the apartment vitiates the contract entered with Gestion Lion Gratte-ciel Inc.

In doing so, the defendant remains the principal lessee of the apartment and assumes all responsibilities. [ 7 ] The only issue here is whether, as the primary lessor, the defendant can be found guilty of the offence committed by its sub- lessor. ANALYSIS [ 8 ] The prosecution’s evidence shows that hosts Andrea and Loic rent the apartment. The Enterprise register, submitted into evidence, shows that Loic Yavercovski is the principal shareholder of Gestion Lion Gratte-ciel Inc.

The evidence also establishes that, at the times of the events, this company was subletting the defendant’s apartment. [ 9 ] There is nothing in the evidence to support the conclusion that, on August 22, 2022, the defendant operates or gives reason to believe it operates a tourist accommodation establishment at the apartment. [ 10 ] It is true that the Civil Code of Quebec requires a tenant to notify his landlord when he intends to sublet his lease [1] .

However, this rule is of a civil nature and has no bearing on the present matter [2] . [ 11 ] Whether or not the defendant notified the owner does not change the evidence and does not prove that the infraction was committed by the defendant.

[ 12 ] The analysis of all the evidence does not allow to conclude, beyond a reasonable doubt, that the defendant committed the infraction nor that it participated in the commission of the infraction in any matter. FOR THOSE REASONS, THE COURT: [ 13 ] ACQUITS 10892041 Canada Inc. of the infraction. __________________________________ Honourable Geneviève Claude Parayre Presiding Justice of the Peace Me Cristina Nedelcu Agence du Revenu du Québec For the prosecution Me Dominique Pion For the defendant Hearing date: October 2, 2023