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New Filing Requirement for Canada's Section 156 Election for Supplies Made for No Consideration

|Approved Changes|Canada
Canada

Section 156 of Canada's Excise Tax Act provides for an election that permits qualifying corporations and Canadian partnerships, to treat certain taxable supplies between them as having been made for no consideration. The effect of the election is that such supplies are not subject to Canadian sales tax (GST and HST).

Under current rules, the election is not filed with the tax authorities, but …

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