Section 240

Subsection 240(1) - Registration Required

See Also

Restaurant Loupy's inc. v. The Queen, 2016 TCC 260 (Informal Procedure)

When the operator of a restaurant ceased operations due to a termination of its lease, it applied for and was granted a revocation of its GST and...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 171 - Subsection 171(3) continued to be registrant following revocation of registration number 314
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Registrant registrant based on wind-up activities 62
Tax Topics - Excise Tax Act - Section 141.1 - Subsection 141.1(3) - Paragraph 141.1(3)(a) holding discontinued equipment 151

Administrative Policy

27 February 2020 CBA Roundtable, Q.24

Example 1 in Policy Statement P-051R2 indicates that a non-resident lessor (with a leasing business outside Canada) is considered to be carrying...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 179 - Subsection 179(9) s. 179(9) does not affect whether a non-resident lessor is carrying on business in Canada 153

27 February 2020 CBA Roundtable, Q.18

CRA indicated that, in general, GST/HST “retroactive registration is only available if a person was required to be registered for GST/HST...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) election for a real estate JV can prevent a subsequent unregistered purchaser of an interest therein receiving retroactive relief 187
Tax Topics - Excise Tax Act - Section 167 - Subsection 167(1.1) - Paragraph 167(1.1)(a) - Subparagraph 167(1.1)(a)(iii) s. 167(1.1)(a)(iii) only applicable where both parties are not registrants 26

30 August 2018 Ruling 185770

A non-resident insurer which otherwise was only making exempt (insurance policy) supplies in Canada was found to have been required to register...

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Other locations for this summary
Tax Topics - Excise Tax Act - Section 136.1 - Subsection 136.1(2) reciprocal provision of admin services with annual billing at cost

8 March 2018 CBA Commodity Tax Roundtable. Q. 18

A non-resident (VCo) sells goods to PCo on consignment with the goods delivered to PCo at VCo’s U.S. warehouse (under Incoterm® “Free...

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8 March 2018 CBA Commodity Taxes Roundtable, Q.1

Where non-resident actors and directors film at Canadian locations in Canada, and are paid large sums (exceeding $30,000) respecting services...

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16 March 2018 Ruling 158124

Current arrangements

USco, which is not a registrant, supplies information services to businesses and individuals. A small portion of its...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 5 zero-rating of marketing assistance provided by Canco to U.S. affiliate 186
Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) USco not carrying on business in Canada by virtue of extensive marketing assistance (without client contact) work provided by Canadian affiliate 228

19 March 2018 Interpretation 183900

A corporation now governed by the Canada Not-for-profit Corporations Act (“Corporation A”) was registered by telephone with an effective date...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 225 - Subsection 225(4) - Paragraph 225(4)(b) corp potentially could have its registration backdated by 6 years to claim ITCs 205

23 March 2017 CBA Commodity Taxes Roundtable, Q.4

A non-resident leasing company enters into an agreement outside Canada for the lease of industrial equipment to a Canadian lessee. The lessor...

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19 May 2017 Interpretation 178323

CRA found that a limited partnership, whose only asset was an interest in a real estate development limited partnership, was engaged only in the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) holding LP for a commercial real estate LP was not engaged in a commercial activity 135

26 February 2015 CBA Roundtable, Q.26

What should a non-resident do if it wishes to voluntarily register for HST/GST purposes but does not (contrary
to CRA practice) want a corporate...

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26 February 2015 CBA Roundtable, Q. 16

Company B transfers its co-ownership interest in a commercial rental property on a rollover basis to Company C, whose sole activity is to hold the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 171 - Subsection 171(1) unregistered purchaser of commercial real estate subsequently registered as small supplier 256

May 2013 ICAA Roundtable, GST Q. 5 (reported in April 2014 Member Advisory)

[I]f person has provided services to the province of Alberta and has exceeded the small supplier threshold, must it be registered for GST/HST back...

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CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 15.

An unregistered non-resident enters into an agreement to supply and install a power generation facility inside Canada with the installation to...

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20 August 2012 Interpretation Case No. 140855r (see also Ruling Case No. 137186)

USco (a non-resident which is not registered) provides information to its customers including Canadian customers using its website (without direct...

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29 March 2012 Ruling Case No. 137186 [solicitation in Canada not sufficient]

A non-resident company which sold on-line books to Canadian residents over the internet was not carrying on business in Canada, given

that the...

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16 March 2009 Interpretation Case No. 110027

After stating that "the categorization of the Nominee as an active or bare trust is significant as it dictates who, between the Beneficial Owner...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) 73
Tax Topics - Excise Tax Act - Section 177 - Subsection 177(1.1) real estate nominee can make election 62

9 March 2006 Canadian Bar Association Commodity Tax Section Roundtable, Q. 23

…a bare trustee is not seen as carrying on any commercial activity with respect to the trust property, and thus is not eligible to register….

RC2(E) "The Business Number and Your Canada Revenue Agency Program Accounts"

Indicates inter alia that the effective date of registration for someone who is required to be registered is the date it begins to provide taxable...

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GST/HST Technical Information Bulletin B-068 "Bare Trusts" Amended 10 January 2005

The determination that a trust is a bare trust generally will result in a conclusion that only the beneficial owner should register and that the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) 52
Tax Topics - General Concepts - Agency 226
Tax Topics - Excise Tax Act - Section 269 transfer of registered title by (or to) bare trustee generally is for nil consideration 102

17 July 1995 Headquarter Letter File 11635-3

A non-resident company offers music discs for sale in Canada under a consignment arrangement with a distributor. The discs are both produced in...

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Policy Statement P-051R2 "Carrying on Business in Canada" 29 April 2005

Situs of leasing or services business

In the case of a supply of property by way of lease, factors that are typically of greater importance...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 143 - Subsection 143(1) 173

P-015 "Treatment of Bare Trusts under the Excise Tax Act", 20 July 1992

"The bare trustee would not be seen as carrying on any commercial activity with respect to the trust property, and thus the trust would not be...

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GST M 200-3 "Calculation of the Small Suppliers' Threshold" under "Determining the Value of Consideration"

The small supplier threshold is calculated by determining the value of taxable supplies made by the person or an associate on a world-wide basis.

Articles

David M. Sherman, "GST Tidbits – Backdating of Voluntary Registrations by 30 Days", GST & HST Times, Release No. 280C – March 2013

At CRA's annual GST/HST meeting with the Canadian Bar Association Commodity Tax section on February 23, 2012, CRA stated in Question 48:

For a...

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Barry Hull, "GST Tidbits - Backdating GST/HST Registrations", GST & HST Times, No. 267P, 24 February 2012, p. 5

CRA will no longer automatically allow an HST registration application to be backdated up to 30 days.

Michael J. Welters, "GST Number Caution", Canadian Tax Highlights, Vol. 18, No. 1, January, 2010"

Discussion of denial of taxpayers' claim for ITCs in Systematix Technology Consultants Inc., 2007 FCA 226, on the basis that suppliers had...

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Vincze, Esteves, "Canadian GST: A Potential Tax Minefield for Nonresidents", Tax Notes International, Vol. 10, No. 12, March 20, 1995, p. 992

RC has taken a very strict approach respecting when a person is carrying on business in Canada for GST purposes, particularly in the area of...

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Forms

RC1 "Request for a Business Number" (HST or GST)

GST/HST Registry: "The GST/HST Registry lets you validate the GST/HST number of a business."

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Subsection 240(1.1)

See Also

Uber B.V. v Commissioner of Taxation, [2017] FCA 110

The taxpayer used his Honda Civic vehicle to provide uberX driver services, whereby an app allowed registered riders to request transportation...

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Words and Phrases
taxi

Uber Canada Inc. v. ARQ, 2016 QCCS 2158, aff'd 2016 QCCA 1303

The ARQ obtained a search warrant for searching an Uber Canada office in Montreal, which under s. 40 of the Tax Administration Act (Quebec),...

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Words and Phrases
taxi
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 231.3 - Subsection 231.3(3) it was reasonable for ARQ on a search to seize smart phones and laptops to make subsequent complete copies 440
Tax Topics - General Concepts - Illegality Uber drivers' breach of provincial registration statute did not justify their failure to register for QST purposes 238
Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 8 seizure of computers containing personal information was the only practicable approach 142

Subsection 240(2.1)

Forms

RC1 Request for a Business Number and Certain Program Accounts

Different form for SLFIs

Do not use this form if both of the following apply to you:
• You are a selected listed financial institution (SLFI)...

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Subsection 240(3) - Registration Permitted

Administrative Policy

May 2016 Alberta CPA Roundtable, GST Q.6

How is back-dating of registrations being assigned and what is the process if the request is denied? CRA responded:

If a taxpayer who is...

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28 January 2014 Interpretation 156861

This interpretation essentially is an advance version of Notice [264] below. CRA stated that if a "nominee corporation is an agent and makes...

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RC4022 "General Information for GST/HST Registrants"

If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily. If you register...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 238 - Subsection 238(2) 621

P-216 Registration of a Partner 24 April 1996

Entitlement of corporate partner to register based on partnership’s commercial activity

The Department will permit a partner (other than an...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(2) 131

GST M 300-4-7 "Exempt Supplies - Financial Services"

If listed financial institutions are not engaged in any commercial activities (e.g., zero-rated financial services), they cannot register.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 150 - Subsection 150(1) 0

GST Memeorandum (New Series), 2.3 "Voluntary Registration"

Articles

Andrew Linton, Jillian Adams, "CRA Denies Voluntary GST/HST Registration for Financial Institutions", Canadian Tax Focus, Vol. 9, No. 4, November 2019, p. 7

Potential reduction in filing and payment-frequency obligations if Cdn branch of foreign FI voluntarily registers (p. 7)

A Canadian branch of a...

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Paragraph 240(3)(a)

Administrative Policy

14 October 2016 Interpretation 170549

ACo and BCo, which were co-tenants of a property in construction held through a Nominee made a s. 273 election in year X + 2 designating ACo as...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) Westcan test for JV, co-tenancy was JV 176
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) agent could not claim ITCs 157
Tax Topics - General Concepts - Agency co-owners required to report pro rata portions of sale made by their agent 195

GST/HST Notice 284 "Bare Trusts, Nominee Corporations and Joint Ventures" February 2014

After noting that a nominee corporation potentially may makes taxable supplies as agent on behalf of the participants in a joint venture, CRA...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 177 - Subsection 177(1.1) agent not entitled to ITCs 113
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) administrative tolerance for nominee operators 197
Tax Topics - General Concepts - Agency acquisitions of agent those of principal 116

15 November 2011 Headquarters Letter Case No. 135608

Where a "capital pool company" raises capital pursuant to a prospectus on a blind pool basis in order to invest in a company or make an asset...

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Paragraph 240(3)(b)

Administrative Policy

CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 14. ("Voluntary Registration")

Respecting a non-resident person who purchases and sells tangible personal property in Canada, but does not "regularly solicit" orders in respect...

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Paragraph 240(3)(c)

Administrative Policy

GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018

Ability of SLFI to backdate registration by more than 30 days to beginning of reporting period (p. 12)

An ILP may be able to voluntarily register...

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Forms

RC7301 Request for a Business Number and Certain Program Accounts for Certain Selected Listed Financial Institutions

Use of RC7301

Only use this form if both of the following apply to you:

  • You are a selected listed financial institution (SLFI) for goods and...

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Subsection 240(6) - Security

Administrative Policy

Memorandum (New Series), 2.6 "Security Requirements for Non-Residents" May 1999

6. In general, the amount of security that must be posted is set at a minimum of $5,000 and a maximum of $1 million.

7. The initial amount of...

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Subsection 240(7) - Failure to Comply

Administrative Policy

CBAO National Commodity Tax, Customs and Trade Section – 2014 GST/HST Questions for Revenue Canada, Q. 6

What are the implications of the non- resident's failure to provide the required security? CRA stated:

Subsection 240(7), outlines what the CRA...

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