Provincial tax clearance certificate

In British Columbia and Manitoba, a buyer of a business’s assets who does not obtain a certificate can be liable for the seller’s unpaid tax. Each of the three provinces below issues a certificate for that risk. It is separate from the federal CRA clearance certificate.

Three provinces, three versions

• British Columbia: the Ministry of Finance says a purchaser who does not obtain a clearance certificate is liable for an amount equal to any outstanding amount owed by the seller as a PST collector.
• Manitoba: a Bulk Sale Clearance Certificate, which the seller in a bulk sale must apply for and give the buyer a copy of; a receiver that does not operate the business and only sells the assets does not need one. A sale of shares is not a bulk sale.
• Saskatchewan: a certificate confirming all taxes are paid, issued in duplicate by the Revenue Division, with the duplicate passed to the purchaser.

What to ask

Ask whether the province requires one for this kind of sale, who applies, and what it covers, and check any other province’s rules separately. For the wider search, see how to check a business for unpaid taxes.