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Closing Your Business

Part 2: Closing Business-Related Tax Accounts

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On the previous page I explained how to cancel your business registration or dissolve your coporation, the first step to closing a business. Now that you’ve dissolved or canceled your business structure, you’re ready to deal with the tax accounts you need to wind up to close your business.

2. If you have dissolved a corporation, you will want to send the Canada Revenue Agency a copy of the Articles of Dissolution when you file the final return for the corporation. (Otherwise, the CRA will assume the corporation still exists and you will have to continue to file an annual tax return for the corporation forever, even if there’s no tax payable.)

3. You will, of course, also want to wind up your payroll accounts when you’re closing your business. You need to send all CPP contributions, EI premiums, and income tax deductions to your tax centre within seven days of the day your business ends (CRA).

You also need to complete the necessary T4 slips and T4 Summary and send them to the Ottawa Technology Centre within 30 days of the day your business ends.

The CRA recommends that you also complete Form RC145, Request to close business number accounts (BN), and send it along with your final return.

4. Your GST/HST account will also need to be closed when you’re closing your business. Once you’ve filed all your outstanding GST/HST returns and paid any outstanding amounts, send Form RC145, Request to close business number accounts (BN), to the CRA.

In Quebec, Revenu Quebec deals with both GST and QST (Quebec Sales Tax). See more information about canceling these accounts under point 5 below.

5. To close your RST, PST or QST account, you need to file the appropriate paperwork with the relevant provincial ministry. (The Provincial Sales Tax section of my website has links to these.)

In Quebec, to close your registration for GST and/or QST, you need to send Form FP-611-V (Request for Cancellation or Variation of Registration) to Revenu Quebec. As a general rule, you must request cancellation of both your GST and QST accounts to come into effect on the same date. Be aware though that there are some small suppliers who cannot cancel their registration voluntarily, such as taxi drivers and non-resident performers. For more information, see General Information Concerning the QST and the GST/HST.

There now. You’ve worked through the whole list and successfully filed all the paperwork you need to file when you’re closing your business. If you’re closing a business in some province other than Ontario or Quebec, you’ll find that the basic procedure is the same; it’s just a matter of finding, filling out and filing the right form with the right agency. For more information on issues related to closing your business, such as selling your business or succession planning, see my Closing Your Business collection of articles.

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