Cancelling a GST/HST account after a sale

A seller may meet this after selling a business: “You are selling your business” is one of the CRA’s listed reasons, and the CRA page says a joint election with the purchaser may be available. See what happens to GST/HST accounts when a business is sold and GST/HST registration.

What the CRA says closing involves

• Give the business number, legal name, cancellation date and reason.
• Close online through a CRA account, or by mail with Form RC145.
• Report tax on property held at closing: the CRA treats it as sold, with tax due on the fair market value of non-capital property and tax equal to the basic tax content of capital property.
• File up to two returns: one ending the day before closing and, if tax is owing, one for the rest of that month.

What the Act says

Under section 242 of the Excise Tax Act, the Minister may cancel a registration, after reasonable written notice, if satisfied it is not required for the purposes of that Part of the Act. Section 242(2) requires the Minister to cancel, on a request in prescribed form, the registration of a small supplier not carrying on a taxi business, effective after the end of a fiscal year and only if it has been registered for the minimum period that subsection sets.