Making this distinction can be difficult for the following reasons: To determine whether registration is permitted for the contractual entity or whether the parties to the contract can make a joint venture election, it is necessary to distinguish a joint venture arrangement from a partnership arrangement. To simplify the administration of the GST/HST for joint ventures, section 273 of the Excise Tax Act permits the operator of a qualifying joint venture (other than a partnership) and any other participant in the joint venture, to elect to designate the operator as the person responsible for accounting for the GST/HST on all properties and services supplied, acquired, imported or brought into a participating province for or on behalf of the joint venture participants. Under the general GST/HST each participant in a joint venture (which is not a partnership, corporation or trust) must account separately for the GST/HST payable on its purchases and collectible on its supplies, whether they are made directly by the participant or through the joint venture operator acting as its agent. (2) the participants in a joint venture may register for the GST/HST in respect of joint venture activities, but the joint venture may not. (1) a partnership may register for the GST/HST in respect of partnership activities (refer to Policy Number P-216 for information concerning the eligibility of some corporate partners to register for the GST/HST in respect of partnership activities), and Provided all of the other conditions for GST/HST registration have been met, According to subsection 123(1), a partnership is a "person" for GST/HST purposes whereas a joint venture is not, unless it takes the form of a corporation, a partnership or a trust. Only "persons" are permitted to register for the GST/HST under section 240 of the Excise Tax Act. ![]() ![]() Subsection 123(1) and section 273 of the Excise Tax Act.(the ETA) Please note that the following Policy Statement, although correct at the time of issue, may not have been updated to reflect any subsequent legislative changes.ĭistinguishing between a joint venture and a partnership for the purposes of the section 273 joint venture election.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |