CRA requires rights of mutual control by members of a purported joint venture for it to qualify for the GST/HST joint venture election

CRA considers that in order for an arrangement to a qualify as joint venture, so that a joint venture election potentially can be made for GST/HST purposes, the participants must have "a right of mutual control," so that "essential strategic and major decisions such as disposition of assets and large expenditures normally require consent of all the participants." Accordingly, a purported joint venture for the generation of solar electricity on an owner’s roof and sharing of the resulting revenues would not qualify if all the building owner is doing is providing the roof and everything else is required to be handled only by the solar panel owner.

Summaries of 17 July 2014 Interpretation 152176 under ETA, s. 273(1) and Joint Venture (GST/HST) Regulations, s. 3(1)(e).