GST POLICY STATEMENT

P-117 SUPPLY OF A SINGLE STORE BY A PERSON OWNING A CHAIN OF STORES

Date of Issue

February 23, 1994

Subject

Supply of a single store by a person owning a chain of stores.

Legislative Reference(s)

Subsection 167(1) of the Excise Tax Act

National Coding System File Number(s)

11735-15

Effective Date

January 1, 1991

Text
This policy statement will discuss whether the sale of a single store out of a multi-store operation qualifies for the election under subsection 167(1) of the Act to have no GST payable on the supply.

The sale by a person of a single store out of a multi-store operation is considered to be the supply of part of a business and provided all the requirements of subsection 167(1) of the Act are met, qualifies for the election thereunder to have no GST payable on the supply.

SAMPLE RULINGS

Statement of Facts

1. Corporation A operates four paint stores.
   
2. Corporation A is selling one of the stores to Corporation B.
   
3. Both Corporation A and B are registrants for purposes of the GST.
   
4. Corporation A is selling substantially all of the assets, such as the land, building, equipment, and inventory, that are reasonably necessary for the recipient, Corporation B, to be capable of carrying on the operations of the paint store.

Ruling Requested

Does the supply of the paint store from Corporation A to Corporation B qualify for the election under subsection 167(1) of the Act?

Ruling Given

Provided the statement of facts and transactions is correct and constitutes a complete disclosure of all relevant facts and transactions, and that those transactions are carried out in the manner described, we rule that:

Corporation A and Corporation B may jointly elect under subsection 167(1) of the Act to have no GST payable on the supply of the paint store.