CRA considers that a joint venture agreement and management agreement can qualify as “an agreement” for GST joint venture election purposes

In order for a registrant to qualify as the “operator” under a GST joint venture election it must inter alia be a participant in the joint venture “under an agreement, evidenced in writing, with” a co-venturer. CRA “may consider…two agreements to constitute a single joint venture agreement” for this purpose. For example, where a joint venture starts off comprising two co-owners, and then in a subsequent year they enter into an agreement with a property manager or other “operator” which deals only with the property management subject matter rather than also repeating all the rights and obligations under the original co-ownership agreement, joint venture elections potentially could be made in the second year with the manager qua operator.

CRA also accepts that an agreement styled as a “co-ownership agreement” can be regarded as a joint venture agreement (i.e., the mere label used is not a touchstone).

Neal Armstrong. Summary of 26 February 2015 CBA Roundtable, Q. 13 under ETA s. 273(1) and Interpretation Act, s. 33(2).