CRA considers that an a business which is acquired on an amalgamation cannot be transferred immediately with the benefit of a s. 167 GST election

CRA considers that a s. 167 GST election is not available where an operating company is amalgamated and Amalco immediately sells all of the assets, on the grounds that Amalco is a new corporation that itself did not carry on the business.  Similar difficulties arise where a Newco which acquired all of a business is immediately amalgamated before carrying on the business.  This is a perennial issue.

Neal Armstrong.  Summary of CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 20. ("Reorganizations - Amalgamations") (available with membership password at http://www.cba.org/CBA/sections_NSCTS/main/GST_HST.aspx), under ETA, s. 167.