How to Close Your Tax Accounts When Exiting a Business

Whether it be retirement, a new career choice, an attractive offer, or lifestyle changes, there are many reasons you may want to exit your business. Although this process can be bittersweet, ensuring everything is in order will make the transition much more manageable. A necessary part of the process is making sure you close your tax accounts correctly.

Closing Your Tax Accounts

If you decide to close your business and have a Business Number (BN), you’ll have to complete certain forms before the Canada Revenue Agency (CRA) closes your account(s).

Each business account has its own remitting and filing obligations. These include:

Payroll

You must remit all Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and income tax deductions within seven days of terminating your business.
Complete and file the T4 and T4A slips and summaries within 30 days of termination.
Attach a note with your final return asking that the account be closed or complete form RC145, Request to Close Business Number accounts.

PST Account

To close your PST account, you must complete and submit a closure request. This process can be done:
- Online, with eTaxBC
- By submitting a Request to Close Provincial Sales Tax Account
Remember, you need to file and pay all tax returns up until the date of closure.

Corporate Income Tax

When looking to dissolve your corporation permanently, you should send a Dissolution Request to the government body that governs the affairs of your corporation.
You should also file a final return and send the CRA a copy of the articles of dissolution. Otherwise, the CRA will think that the corporation still exists, and you’ll have to file a return even if there’s no tax payable.

Need More Guidance?

For more information, take a look at How to Exit Your Small Business, or this Government of BC article that covers the different exiting options available to you.

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