What is the deadline to file the section 167 GST/HST election?

The deadline for the section 167 election sits in subsection 167(1.1) of the Excise Tax Act, and it runs from the buyer’s own GST/HST return, not from a fixed calendar date. Where the buyer is a registrant, it files the election with the Minister not later than the day on or before which its return is required to be filed for its first reporting period in which tax would, but for the election, have become payable on a supply under the agreement.

The buyer holds the deadline

The Act gives the filing step to the recipient: the recipient, if a registrant, files the election. The CRA’s page on selling a business says the same in plainer terms. The purchaser has to file the form with the CRA no later than the due date of their next GST/HST return in which tax would have been payable if the election had not been made. The form is GST44, and that page also mentions a “File an election” service in a CRA account. A seller who wants the election should confirm who is signing and filing well before closing.

Which return sets the date

Section 168(1) says tax on a taxable supply is payable by the recipient on the earlier of the day the consideration is paid and the day it becomes due, and the same section has further timing rules. So, under that general rule, the first reporting period in which tax would have been payable depends on when money is paid or falls due under the agreement. Ask the buyer’s accountant which period that is for this purchase, and write the date into the closing checklist.

A later day, and what is not covered

The Act also lets the Minister set a later day on the recipient’s application. The sources read for this page do not explain how that application is made or when it is granted, so ask the CRA or an accountant before relying on it. The rule above is about timing only. The election is not available where the supplier is a registrant and the recipient is not, and it needs a supply of a business or part of a business. The qualifying tests are a separate question.