Your cancellation date is the day your business ends.

You may be able to jointly elect with the recipient to have no GST/HST payable on the sale of your business, or part of your business, if you meet the conditions for making a joint election.

The recipient must acquire at least 90% of the property necessary to carry on the business (or part of it) as a business. This election cannot be used if you are in the following situations:

• you sell only individual assets of your business
• you are a registrant and the recipient is not

Any property not acquired under the agreement, but that the recipient needs to carry on the business (for example, real property), has to fall within the remaining 10% of the fair market value of all the property acquired.

To make this election, use Form GST44, Election Concerning the Acquisition of a Business or a Part of a Business.

For more information, see Selling a business.

If your total taxable revenues fall below the Small-supplier limit calculation amount, you may decide to deregister your GST/HST account. You need to be registered for at least one full year before you ask to close your account. However, if you are either:

• a taxi operator or a commercial ride-sharing driver, you must register and remain registered for GST/HST, even if you are a small supplier
• a non-resident performer selling admissions to seminars and other events, you must register and remain registered for GST/HST, even if you are a small supplier

You may decide to close your GST/HST account if your total taxable revenues are lower than either:

• the Small-supplier limit calculation for public service bodies
• the Small-supplier limit calculation for charities and public institutions

You need to be registered for at least one full year before you ask to close your account.

Your public service body may be eligible to have a qualifying branch or division designated as a small-supplier division. To apply, use Form GST31, Application by a Public Service Body to have Branches or Divisions Designated as Eligible Small Supplier Divisions.

If you stop making taxable supplies, you no longer need to be registered. You can ask us to close your GST/HST account.

You have to send to your tax services office a copy of one of the following:

• a court issued Assignment in Bankruptcy
• a Bankruptcy Notice
• a correspondence entitled First Meeting of Creditors

Usually, your BN will be closed after the discharge.

If you engage in or continue a business activity outside of the estate beginning on the day after the assignment into bankruptcy, you:

• will be considered a new entity
• will require a new BN and GST/HST account

The small-supplier threshold for mandatory GST/HST registration begins on the day immediately after the assignment into bankruptcy.

Making a proposal in bankruptcy is not the same as filing for bankruptcy. If you make a proposal in bankruptcy (in other words, a payment arrangement with your creditors to prevent bankruptcy), your GST/HST account will not be closed automatically. If a trustee is appointed, they do not need to open another program account to access your property during this period. It is important that you forward copies of all documentation relating to your proposal in bankruptcy to your tax services office because it may impact your GST/HST account.

For more information, see:

• Bankruptcy/Receivership
• Office of the Superintendent of Bankruptcy

When you cannot pay your debts, a receiver may be appointed by a court through a court order, or by a secured creditor through a letter of appointment to do all of the following:

• take control of property
• supervise liquidation proceedings
• remit the proceeds according to priorities established by common or statutory law

A receiver may either:

• use your existing GST/HST account to take control of your business by reporting the activities of the receivership
• open a separate GST/HST account as part of your existing BN

Most receiverships lead to:

• ending the client's activities
• closing the client's BN

For more information, see Bankruptcy/Receivership.

In a merger, one corporation absorbs one or more corporations and continues to carry on business as usual. An amalgamation takes place when two or more corporations known as predecessor corporations, combine their businesses to form a new successor corporation. Based on the information received, we make the necessary changes to the old BNs (including the corporation income tax accounts), and if necessary, we register a new BN and GST/HST account for the newly created corporation.

In some cases, the newly amalgamated corporation can keep the BN and the GST/HST account number of the dominant predecessor.

When the GST/HST accounts of the other predecessors are to be closed, you must file the returns up to the day before the date of merger/amalgamation, or in some cases, to the date of deregistration (if the date is different than the merger/amalgamation date).

For more information on the impact of an amalgamation on your BN, see Amalgamation (corporations).

When the owner of a sole proprietorship passes away, the GST/HST account has to be closed and a final GST/HST return will have to be filed.

For more information on the impact of a retirement or death on a BN, see Retirement or death of business owner or partner.

The status of the GST/HST account, as well as the BN, depends on the type of partnership agreement. It is possible to add new partners without having to register for a new BN. However, in some cases where the partners change, the business would be considered a new legal entity and would require a new BN with a new GST/HST account.

If it is determined that the partnership will no longer exist, the GST/HST account has to be closed and a final GST/HST return has to be filed.

For more information on the impact of a retirement or death on a BN, see Retirement or death of business owner or partner.

You are considered to have sold each property (other than capital property) you held for consumption, use, or supply in a commercial activity and to have collected GST/HST on such sales.

Remit (pay) the GST/HST on the fair market value of each of these properties just before you close your account. Report this GST/HST on your final return.

You are considered to have sold each capital property you held for use in your commercial activities immediately before closing your GST/HST account and to have collected tax equal to the basic tax content of the capital property at that time.

Use the change in use rules for this property to determine if you have tax owing.

Include the tax you are considered to have collected in your net tax calculation on your final return. Generally, all or part of the input tax credits previously claimed on this property have to be repaid.

For more information, see Input Tax Credits.

You cannot claim input tax credits (ITCs) for rent, royalties, or similar payments that relate to the period after you close your GST/HST account. You have to make an adjustment to your net tax calculation on your final return if you have claimed ITCs for the GST/HST paid or payable on these payments.

However, you may be eligible to claim an input tax credit for the GST/HST that becomes payable after you close your GST/HST account for services, rent, royalties, or similar payments that relate to a period before you cease to be registrant.

You are considered to have 2 separate reporting periods when you close your account. You may have to file 2 returns, including:

• a return for a reporting period that ends the day before you close your GST/HST account
• a return for a reporting period that begins the day you closed your GST/HST account and ends on the last day of that month (this only required if you have tax to remit for that period)