A newly-incorporated Subco within a large corporate group generally cannot claim ITCs for GST on pre-incorporation contracts

CRA recognizes that a corporation can generally adopt a pre-incorporation contract for GST purposes. However, this will not entitle it to claim ITCs for the related GST unless (in light of the rule in ETA s. 171) it started off life as a small supplier (which will not work if it is part of a larger commercial group that is over the relevant small-supplier threshold).

Neal Armstrong. Summary of CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 23 ("Pre-Incorporation Contracts") (available with membership password at http://www.cba.org/CBA/sections_NSCTS/main/GST_HST.aspx), under ETA, s. 169(1).