An ETA s. 273 election for a real estate JV can prevent a subsequent unregistered purchaser of an interest therein receiving retroactive relief

CRA indicated that, in general, GST/HST “retroactive registration is only available if a person was required to be registered for GST/HST purposes pursuant to subsection 240(1).”

Thus, where a new co-venturer purchased an interest in an existing real estate joint venture for which an ETA s. 273 election was already in place (so that all the rental supplies of that real property were to be reported by the JV “operator” and not by it), it could not become retroactively registered to the date of acquisition so as to claim an ITC for the GST/HST payable by it on that acquisition, and to relieve the supplier from collecting tax under ss. 221(2)(b) and 228(4).

Neal Armstrong. Summaries of 27 February 2020 CBA Roundtable, Q.18 under ETA s. 273(1) and s. 167(1.1)(a)(iii).