News and Insights

Reminder to File New Form for Existing Elections for Nil Consideration

Tax Development Dec 04, 2015

The Canada Revenue Agency (CRA) has issued GST/HST Notice No. 290 to remind parties that Form RC4616 must be filed by December 31, 2015. This form may be used to either elect or revoke an election previously in place under section 156 of the Excise Tax Act to treat supplies between eligible parties as having been made for nil consideration for GST/HST purposes.

While specified members of a qualifying group who may have had an election on record before January 1, 2015 were not previously required to file old Form GST25, recent changes to the legislation mandate that new Form RC4616 must now be filed with the CRA. This also applies to anyone who may have subsequently filed an election with a new member.

The new form somewhat simplifies the election process, by allowing a single election form to be filed in situations involving more than two members, even where multiple section 156 elections formerly existed. Form RC4616 should indicate December 31, 2014 as the effective date of the election and electing members must retain any previously completed GST25 forms to substantiate the original effective date of each election.