Application of Subsection 149(3)

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Application of Subsection 149(3)

GST/HST Policy Statement P-021

DATE OF ISSUE September 4, 1992

SUBJECT Application of subsection 149(3)

LEGISLATIVE REFERENCE(S) Subsection 149(3) of the Excise Tax Act

NATIONAL CODING SYSTEM FILE NUMBER(S) 11560-6

EFFECTIVE DATE January 1, 1991

TEXT

This policy statement discusses the application of subsection 149(3) where a person acquires a non-financial business as a going concern from a financial institution.

Pursuant to subsection 149(3), where a person purchases, in a taxation year a non-financial business as a going concern from a financial institution, and this activity was continued as the person's principal business after the purchase, the person is considered to be a financial institution for the remainder of that taxation year.

However, in the circumstances described above, it is the Department's position "not" to consider a person who purchases a non- financial business from a financial institution to be a financial institution unless it wants to be considered a financial institution.

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Date modified:
2017-06-22