21 Nov 2013

It can be exciting to sign up for a GST/HST account.

It means your small business has crossed the $30,000 threshold for revenue.

But business can slow down.

Or, stop altogether.

You might find that you need to deregister your GST/HST account.

A small business owner or sole proprietor might have to deregister his account for several reasons:

  • You’re closing your business
  • You’re selling your business
  • You’re no longer earning enough revenue
  • You’re declaring bankruptcy
  • You are no longer making taxable supplies
  • You’re amalgamating your account with another
  • Your business is going into receivership
  • The holder of the GST account has died
  • Your partner has died or retired

The Canada Revenue Agency allows companies to deregister their GST/HST accounts, but only if the account has been open for at least one year.

The CRA may also reclaim some of the input tax credits you claimed on property.

How to close your GST account

Once you make the decision to close a GST account, you need to have the following information:

  • The business number
  • The legal name of the business
  • The effective date of deregistration
  • The reason for closing the account
  • A GST 44 if you are selling the business

You will also need to fill out Form RC145, a request to close the account.

Keep your records

The Canada Revenue Agency requires you to retain your business documents (receipts, invoices, etc.), even if you have closed or sold your business. Generally, you should keep all records for six years but, if you have dissolved a corporation, you need to keep your records for two years after the date of dissolution.

You can request permission from the CRA to destroy your records before those time limits expire. You must send the CRA a written request and await the agency’s written approval.

Free business coaching workshop

We still have room at our two-hour workshop with Forzani Business Coaching’s Grant Basiuk. If you’re a small business owner in Calgary, you don’t want to miss this.

Grant will teach you how to watch your business scoreboard and use it to make better business decisions.

The free workshop runs Friday, November 29, from 9:30 to 11:30 a.m, at the Elks Lodge and Golf Club. Register early at Eventbrite.

You can also contact Grant to book a meeting.

Here to help

A1 Accounting, a Calgary accounting and bookkeeping firm, is here to assist you with your taxes and planning. We specialize in personal taxes and small-business accounting and financial services. Contact one of our tax specialists and we can help you optimize the tax benefits and credits available to self-employed individuals and small businesses.

Fill out our contact form or give us a call at 403-226-8297.