The “should I register for GST/HST” question is a common one we get from our clients, which normally goes like this:
I have received forms from CRA for GST/HST registration, I am not sure if I should register a GST/HST number for a parent corporation and a real estate holding company. There is no income other than long-term residential rental income from the real estate holding company, but we don’t charge GST/HST on rentals.
Most people find that they are not required or not allowed to register the companies for GST/HST. However, generally speaking I try and register the companies because I’m never sure if there’s going to be a transaction in the future which requires registration that I forget about until it’s too late.
That being said. If you’re renting out residentially on a long-term basis, odds are you’ll never need the registration.
George E. Dube, MAcc, CATags: corporations, HST