Excise Tax Act

Marginal note:Election for streamlined accounting

• 227 (1) A registrant (other than a charity that is not designated under section 178.7) who is a prescribed registrant or a member of a prescribed class of registrants may elect to determine the net tax of the registrant for a reporting period during which the election is in effect by a prescribed method.

• Marginal note:Form and contents of election

  (2) An election made under subsection (1) by a registrant shall

  • (a) be filed in prescribed manner with the Minister in prescribed form containing prescribed information;

  • (b) set out the day the election is to become effective, which day shall be the first day of a reporting period of the registrant; and

  • (c) be filed

    • (i) where the first reporting period of the registrant in which the election is in effect is a fiscal year of the registrant, on or before the first day of the second fiscal quarter of that year or such later day as the Minister may determine on application of the registrant, and

    • (ii) in any other case, on or before the day on or before which the return of the registrant is required to be filed under this Division for the first reporting period of the registrant in which the election is in effect or on such later day as the Minister may determine on application of the registrant.

• Marginal note:Cessation

  (3) An election made under this section by a registrant ceases to have effect on the earlier of

  • (a) the first day of the reporting period of the registrant in which the registrant ceases to be a prescribed registrant or a member of a prescribed class of registrants, and

  • (b) the day on which a revocation of the election becomes effective.

• Marginal note:Revocation

  (4) An election made under subsection (1) by a registrant may be revoked by the registrant.

• Marginal note:Effective date and notice of revocation

  (4.1) A revocation of an election made under subsection (1) by a registrant

  • (a) shall become effective on the first day of a reporting period of the registrant but not earlier than one year after the election became effective; and

  • (b) is not a valid revocation unless a notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the registrant in which the election is effective.

• Marginal note:Exception

  (4.2) Where a registrant makes an election under subsection (1) to determine the net tax of the registrant in accordance with a prescribed Part of the Streamlined Accounting (GST/HST) Regulations,

  • (a) paragraph (2)(a) does not apply to the election;

  • (b) notwithstanding subsection (2), the election shall be made before a return under this Division is filed for the reporting period of the registrant in which the election becomes effective; and

  • (c) paragraph (4.1)(b) does not apply to a revocation of the election.

• Marginal note:Restriction on input tax credits

  (5) Where an election made under this section by a registrant ceases to have effect, an input tax credit (other than a prescribed input tax credit) of the registrant for a reporting period of the registrant during which the election was in effect shall not be claimed by the registrant in a reporting period that begins after the election ceased to have effect.

• Marginal note:Restriction on input tax credits

  (6) Sections 231 to 236 do not apply for the purpose of determining the net tax of a registrant for a reporting period during which an election made by the registrant under subsection (1) is in effect, except as otherwise provided in the Streamlined Accounting (GST/HST) Regulations.