Common use of GST Election Clause in Contracts

GST Election. The Buyer and the Seller shall elect jointly pursuant to the provisions of subsection 167(1) of the Canadian Excise Tax Act and section 75 of the Quebec Sales Tax Act (collectively, the "Excise Act"), by completing and filing all prescribed forms and related documents in such manner and at such time as is prescribed, that for the purposes of the Excise Act, no tax is payable under the Excise Act in respect of the assets relating to the Acquired Business and the Buyer shall be deemed to have acquired such assets for use exclusively in commercial activities of the Buyer. Each of the Seller and the Buyer hereby represents that it is a registrant as described under the Excise Act. In the event Revenue Canada (or its Quebec counterpart) does not accept the foregoing and the Seller is challenged by Revenue Canada (or its Quebec counterpart), the Buyer will provide all assistance, cooperation and documentation as reasonably requested by the Seller.