Section 273

Subsection 273(1) - Joint Venture Election

See Also

Medallion Corporation v. The Queen, 2018 TCC 157

The appellant (“MC”) entered into 10 agreements each entitled “Joint Venture Agreement” (JVA) with corporations with which it did not deal...

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Words and Phrases
joint venture
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply property manager's share of rents in rental JV was not taxable consideration 371

Lau v. The Queen, [2007] GSTC 171, 2007 TCC 718

The appellant was the director of a corporation ("Golden Leaf" - confusingly referred to in the reasons for judgment as "GL Trust") which was a...

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DeWinter v. Consolidated Food Brands Inc. (1998), 43 B.L.R. (2d) 106 (B.C.S.C.)

A terminated sales agent claimed that he was engaged in a joint venture with the company whose products he had been distributing, so that he had a...

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Words and Phrases
joint venture

Westcan Malting Ltd. v. The Queen, [1998] G.S.T.C. 34

In order that the appellant (“Westcan”) could be assisted in building a malting plant near the Village of Alix, Alberta, the Village received...

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Words and Phrases
joint venture

Central Mortgage & Housing Corporation v. Graham, 43 D.L.R. (3d) 686, 1973 Canlii 1244 (N.S.S.C.)

The plaintiff (“CMHC”) had sued for foreclosure with the purchaser (the Grahams) counter-claiming for alleged defects in the building against...

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Administrative Policy

27 February 2020 CBA Roundtable, Q.20

Further to 2018 CBA Roundtable, Q.11, will a marginal interest (e.g. 0.001%) in a joint venture allow a nominee to be considered to be a...

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27 February 2020 CBA Roundtable, Q.18

Where a valid s. 273 election was in place with respect to an ongoing joint venture, and a new co-venturer purchased an interest in the joint...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) retroactive registration unavailable on the basis of purchasing an interest in a JV that is subject to a s. 273 election 117
Tax Topics - Excise Tax Act - Section 167 - Subsection 167(1.1) - Paragraph 167(1.1)(a) - Subparagraph 167(1.1)(a)(iii) s. 167(1.1)(a)(iii) only applicable where both parties are not registrants 26

27 February 2020 CBA Roundtable, Q.12

Medallion expanded the concept of a “participant” beyond CRA’s administrative definition of that term, by characterizing a person who...

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27 February 2020 CBA Roundtable, Q.8

Where a person is the operator of a joint venture for the construction of a multiple-unit residential complex by virtue of having managerial or...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 191 - Subsection 191(3) construction manager as operator for construction of MURC does not report the s. 191(3) self-supply 157

28 February 2019 CBA Roundtable, Q.23

Medallion appears to widen the concept of a “participant” to a person contributing property management services alone. The appellant had no...

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

The construction of a pipeline likely would qualify as “the construction of real property … including … development activities” under the...

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8 March 2018 CBA Commodity Tax Roundtable, Q.11

Does a nominee title holder of the joint venture property that makes a small financial contribution to the joint venture, in exchange for a small...

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Excise and GST/HST News No. 103, December 2017

Guidelines for distinguishing joint venture from partnership

The guidelines set out in P-171R may be used to help determine the existence of...

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Words and Phrases
joint venture

14 October 2016 Interpretation 170549

ACo and BCo, which were co-tenants of a property in construction held through a Nominee made a s. 273 election in year X + 2 designating ACo as...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 240 - Subsection 240(3) - Paragraph 240(3)(a) nominee accepted as registrant 156
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) agent could not claim ITCs 157
Tax Topics - General Concepts - Agency co-owners required to report pro rata portions of sale made by their agent 195

May 2016 Alberta CPA Roundtable, GST Q.3

Can a "bare trustee" qualify as an operator where, in fact, there is no bare trust for ITA purposes? CRA responded:

Where the only function of a...

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26 February 2015 CBA Roundtable, Q. 13

Q.1 Can a written agreement, that describes the relationship between the participants as co-ownership of property (rather than as a joint...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(2) 2 related agreements qualify as “an agreement” 133

26 February 2015 CBA Roundtable, Q. 12

Q.1 Corporation A, which has no employees other than an officer, is designated as the operator of a joint venture under an agreement in writing...

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2 December 2014 Interpretation 164212

Various JVs among co-owners were engaged in land development, the construction and sale of new homes and commercial leasing with title being held...

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17 July 2014 Interpretation 152176

Landowner made its real property available for the installation of solar panels and related equipment by the Investor (who retained ownership...

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12 July 2013 Interpretation Case No. 152393

Six persons enter into a real estate joint venture (JV-1) but do not make a s. 273 election. The same six persons form a new joint venture (JV-2)...

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GST/HST Notice 284 "Bare Trusts, Nominee Corporations and Joint Ventures" February 2014

After repeating its position that participants in joint ventures may not elect "for a nominee corporation or bare trust to be the operator of the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 177 - Subsection 177(1.1) agent not entitled to ITCs 113
Tax Topics - Excise Tax Act - Section 240 - Subsection 240(3) - Paragraph 240(3)(a) taxable supply of nominee services 63
Tax Topics - General Concepts - Agency acquisitions of agent those of principal 116

CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 30.

CRA is not revisiting its policy that a nominee generally will not qualify as a participant in a joint venture, and considers the statement in Lau...

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28 March 2013 Interpretation Case No. 151697

After stating that the typical nominee company "does not qualify as a participant for purposes of the joint venture election because it does not...

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21 January 2013 Interpretation Case No. 146302

In finding that a nominee corporation was not eligible to be the operator of a joint venture, CRA stated:

Where the person has engaged no staff to...

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26 November 2012 Interpretation Case No. 148931

In response to a question as to "whether a bare trust or nominee corporation can be an operator of a joint venture for purposes of section 273 of...

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10 May 2011 Headquarters Letter Case No. 103495

Other municipalities make payments to Municipality A under a joint venture agreement in order to fund designated portions of operating deficits of...

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19 December 2008 Ruling Case No. 106868 [purchases of JV interest not covered/mutual control requirement]

Upon the purchase by participants from XX of an undivided interest (UDI) in a project for the development of land as commercial use lots, they...

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8 March 2007 Canadian Bar Association Commodity Tax Section Roundtable, Q. 30

Q.30 – Joint Venture

….[T]he bare trustee is not seen as carrying on any commercial activity with respect to the trust property, and it is...

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26 May 2006 Ruling Case No. 51850 [operator enters into contracts or is responsible for payments]

Before ruling that s. 273(1)(a) applied to deem goods or services acquired by co-venturers to be acquired by the operator and not the...

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9 March 2006 Canadian Bar Association Commodity Tax Section Roundtable, Q. 23

…a bare trustee is not seen as carrying on any commercial activity with respect to the trust property, and thus is not eligible to...

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16 July 2003 Interpretation Case No. 43760

In finding that an arrangement did not qualify as a joint venture, CRA stated:

Based on caselaw, the following set of guidelines can be used to...

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27 February 2003 Canadian Bar Association Commodity Tax Section Roundtable, Q. 13

…Where a nominee company is registered and is named the operator, it must be responsible for the managerial or operational control of the joint...

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14 February 2001 GST/HST Interpretation 15317

Company A and Company B, who hold the petroleum rights to an area under separate permits, plan to conduct exploration, development and production...

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P-171R "Distinguishing Between a Joint Venture and a Partnership for the Purposes of Section 273 Joint Venture Election" 24 February 1999

Definitions of joint venture and partnership

To determine whether a particular relationship is a joint venture or a partnership, the...

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11 February 1994 Interpretation 11660-1/0703

Various tenants in common entered into a joint venture agreement to build and operate a commercial building on land they held through a nominee...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 167 - Subsection 167(1) transfer of co-ownership interest in commercial real estate JV 147

P-138R "The Effect of Making a Joint Venture Election on a Participant's Ability to Register and Claim Input Tax Credits"

Subject to the exception provided for in subsection 141.01(7)..., where a joint venture operator and another participant (called a co-venturer)...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(7) 202

P-106 "Administrative Definition of A 'Participant' in a Joint Venture"

Extension of "participant" to manager

"Participant" means:

"(a) a person who, under a joint venture agreement evidenced in writing, makes an...

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Articles

Ian V. MacInnes, "GST/HST Joint Venture Election", CCH Canadian Real Estate Income Tax Guide, No. 90, April 2012, p. 1

"There would seem to be a reasonable basis to take the position that a Nominee constitutes a participant in a joint venture through the mere act...

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Dennis Wyslobicky, "GST and Real Property", 2004 Commodity Tax Symposium, under "5. Real Property Joint Venture - Start-ups".

Forms

GST21 "Election Or Revocation of an Election to have the Joint Venture Operator Account for GST/HST"

This form must be completed for each...

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Subsection 273(4)

Administrative Policy

May 2019 CPA Alberta CRA Roundtable, GST Session – Q.18

Joint venture participants, who had not made a joint venture election, purchased real estate collectively through a representative who was...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 221 - Subsection 221(2) CRA may consider assessing the purchaser directly where the vendor was misled in relying on s. 221(2) 93
Tax Topics - Excise Tax Act - Section 296 - Subsection 296(1) - Paragraph 296(1)(b) CRA might assess purchaser directly where vendor had innocently relied on s. 221(2) 101

26 February 2015 CBA Roundtable, Q. 15

Would the “temporary administrative tolerance” in Notice No. 284 extend to a registered bare trustee filing the returns in a real estate...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 156 - Subsection 156(4) backdated elections 53

P-187 "Prescribed Form for Joint Venture Elections," 16 October 1997

As a result of the requirement that an effective date be specified, the participants in the joint venture may complete the election form after the...

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Subsection 273(5) - Joint and Several Liability

Forms

GST21 "Election Or Revocation of an Election to have the Joint Venture Operator Account for GST/HST"

All electing participants—operator and...

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