GST/HST Closely Related Persons Election – Filing Deadline Fast Approaching

The election under section 156 the Excise Tax Act (Canada) permits Canadian corporations and Canadian partnerships that are registrants engaged exclusively in commercial activities and that are members of the same qualifying group to jointly elect to treat taxable supplies (subject to certain exceptions) between them as having been made for no consideration. This generally allows intercompany supplies of property and services (subject to certain exceptions) between the parties to the election to be made without collecting GST/HST. Prior to 2015, the election was not required to be filed and the parties simply retained the election in prescribed form in their books and records. However, legislative amendments effective January 1, 2015 provide for a new regime that now requires the election to be filed with the Canada Revenue Agency (CRA) rather than simply kept on file.