CRA confirms that the s. 156 GST/HST election may be available on an asset transfer to a Newco

In its new Memorandum on the intra-group election for nil consideration (s. 156), CRA indicates that it is available for the transfer of assets by an existing exclusively-commercial registrant to a "Newco" subsidiary, provided that before the transfer the Newco is doing something in connection with a proposed exclusive commercial activity.  If so, it qualifies as engaging in that commercial activity, and can register, make the election and receive the assets free of GST or HST.  This can be useful if there are issues as to the availability of the s. 167 election on a drop-down transaction.

Neal Armstrong.  Summary of GST/HST Memorandum 14.5 "Election for Nil Consideration" September 2012 under ETA, s. 156(1).