Statutory Declaration re HST and Indemnity (Corporate Purchaser)

Summary

This precedent is a "Statutory Declaration" delivered by the Purchaser to the Vendor. It confirms that the Purchaser is an HST registrant under the Excise Tax Act (Canada), R.S.C. 1985, c. E-15, and it is in good standing at the time of closing. The Purchaser is also indemnifying the Vendor from the obligation to collect the HST at closing. The Purchaser is agreeing to "Self-Assess" and remit the HST to the government at a later time. This precedent contains practical guidance and drafting notes. A "Statutory Declaration" in Ontario is the equivalent of an "Affidavit", "Sworn Statement" or "Statement made under Oath" in other jurisdictions. It is a solemn and serious communication by, in this case, the Vendor to the Purchaser in a transaction laying out certain facts and statements which the Purchaser may rely upon as if they had been given "under oath". In other words, knowingly lying or misrepresenting the truth under a "Statutory Declaration" is a serious offence and potentially ...