Transferring businesses

Key requirements

Ordinarily, a registered transferor accounts for GST on business assets transferred, even without payment. Going-concern treatment requires the assets to put the transferee in possession of a business, continued use for the same kind of business, and continuity after transfer. A separately transferred part must operate independently. The transferee must already be taxable or immediately become taxable through the transfer. Temporary closure for operational readiness is different from immediate termination. Both parties keep descriptions and values of transferred assets and reconcile the before-and-after values. Conversion of a partnership to a registered LLP can qualify where the business continues intact. The transferor still files returns while registered and applies for cancellation if it expects no taxable supplies in the next 12 months.