Common use of GST Election Clause in Contracts

GST Election. The Canadian Subsidiary and Purchaser shall jointly elect under Section 167 of the Excise Tax Act (Canada) to have subsection 167(1.1) of the Excise Tax Act (Canada) apply to the purchase and sale of the Transferred Assets of the Canadian Subsidiary. The Canadian Subsidiary and Purchaser shall each take all necessary action to properly complete and execute, and Purchaser shall take all necessary action to file, a Form GST44, “Election Concerning the Acquisition of a Business or Part of a Business,” (or any successor form thereto) in order to effect such joint election. If, notwithstanding the foregoing election, the Canadian Subsidiary is required to collect and remit any amount of Tax under the Excise Tax Act (Canada) in respect of the purchase and sale of the Transferred Assets, the Purchaser shall be liable for and shall pay to the Canadian Subsidiary an amount equal to any goods and services tax payable by Purchaser and collectible by the Canadian Subsidiary under the Excise Tax Act (Canada).