FAQs - Commercial Activity Tax (CAT)

If I go out of business or need to cancel my account, what are my requirements?

A final tax return, along with payment for any tax liability due, must be filed within 45 days upon the sale or closure of a business.

Any person acquiring a business, that was subject to the CAT, is liable for the liability of the previous owner, unless the previous owner receives a receipt or certificate from the tax commissioner, indicating that the taxes have been paid or no taxes are due. If you purchase a trade or business with tax liability, you are responsible for withholding a sufficient amount of money to cover the amount due from the former owner. If you fail to withhold the amount due, the successor may be liable for the unpaid liability incurred by the former owner.