Joint Venture (GST/HST) Regulations

Section 3

Subsection 3(1)

Paragraph 3(1)(a)

Administrative Policy

May 2017 CPA Alberta Roundtable, GST/HST Q.3

construction of a pipeline can qualify

Is the construction of pipelines to be used in moving natural resources from the well site to the processing plant or from the plant to the marketplace a prescribed activity? CRA responded:

Where parties enter into a written joint venture agreement with the stated purpose of constructing a pipeline and related infrastructure, to the extent that it is affixed to the ground and intended to remain there on a permanent basis, subject to a review of the agreement, the activity may be a prescribed activity under paragraph 3(1)(a) of the Regulations and an election under section 273 may be made.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) construction of fixture qualifies 43

Paragraph 3(1)(e)

Administrative Policy

17 July 2014 Interpretation 152176

solar panel electricity generation

Landowner made its real property available for the installation of solar panels and related equipment by the Investor (who retains ownership thereof) in order to generate electricity for supply to the Ontario Power Authority under the Ontario provincial micro-FIT program, with revenues being shared.

After finding that this arrangement does not constitute a joint venture, given the lack of mutual control, CRA went on to find that the activity is a prescribed activity under s. 3(1)(e) of the Joint Venture (GST/HST) Regulations, stating:

The purpose of the parties to the Agreement is to construct a facility, generate electricity, and supply it to OPA via the micro-FIT program.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) no rights of mutual control over purported solar panel JV 161