CRA states that whether the GST registration of an initially unregistered purchaser of a commercial rental property can be backdated is “a question of fact”

If a commercial rental real estate property is transferred to a single-purpose Newco (Company C) which inadvertently is not registered at the time of the transfer, would Company C be entitled to register for GST/HST purposes retroactively back to the transfer date given that it is making supplies by way of lease of commercial property and that it is not a small supplier? CRA stated:

[As] Company C was making taxable supplies in Canada of real property by way of lease, then it would have been required to be register under subsection 240(1)… at the time it first made a taxable supply in Canada otherwise than as a small supplier. It will be a question of fact whether…Company C was required to be registered at the time of the transfer of the real property.

This is better than simply saying “no.”

CRA also noted that if the property was subject to a valid s. 273 joint venture election (whose validity would not depend on Company C being registered), then Company C would be deemed not to be making any taxable supply of the real property - so that it could not be registered. CRA did not comment on the quandary as to whether a company which is purchasing commercial real estate with a view to it being supplied under the s. 273 venture election (so that it will not be making any taxable supplies) is thereby precluding from registering - so that it would be required to be charged non-creditable GST on the purchase.

Neal Armstrong. Summaries of 26 February 2015 CBA Roundtable, Q. 16 under ETA s. 240(1) and s. 171(1).