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Retail Sales Tax Clearance Certificates

Vendors that sell their business or business assets through a sale to which the Bulk Sales Act applies are required to obtain a Clearance Certificate from the Ontario Ministry of Revenue.

As Retail Sales Tax liabilities may continue to exist for a period after June 30, 2010, where a sale occurs under the Bulk Sales Act on or after July 1, 2010, the selling party will continue to be required to obtain a Clearance Certificate from the Ontario Ministry of Revenue certifying that all the RST collectable or payable by the seller has been paid or secured. The purchasing party is required to obtain a copy of the Clearance Certificate from the seller.

If the purchaser fails to obtain a copy of the Clearance Certificate from the seller, the purchaser could be held liable for any RST owing by the seller at the time of the sale.

To date there has been no guidance as to when the RST Clearance Certificates will no longer be required.

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Special Report on Harmonized Sales Tax (HST) in Ontario

You're viewing our special report on the introduction of Harmonized Sales Tax (HST) in Ontario. We've prepared this report to help you understand how this change will affect your taxes and how you do business.

For an in depth consultation on how we can help you adjust to the new HST on July 1, 2010, please contact us.