28 March 2013 Interpretation Case No. 141341
In finding that, in the situation where a large business is the operator under a joint venture and all three joint venture participants are small or medium businesses, the purchase of electricity by the operator would result in the recapture of the provincial component of HST, CRA stated:
Where the operator is a large business and a joint venture election has been made with one or more participants, the purchases are deemed under paragraph 273(1)(a) to be acquired by the operator and not the participants….Therefore, the recapture of ITCs for the provincial component of the HST would be required under subsection 236.01(2) for all purchases of specified property or services made by the operator, irrespective of whether the participants are large businesses or not.
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|Tax Topics - Excise Tax Act - Regulations - New Harmonized Value-Added Tax System Regulations, No. 2 - Subsection 27(6)||131|