CPA Canada Commodity Tax Committee’s position regarding CRA’s planned review of joint ventures

Learn about the insights the Chartered Professional Accountants of Canada (CPA Canada) Commodity Tax Committee (CTC) has shared with the federal government about its planned review of joint ventures for GST/HST purposes.

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CPA Canada’s CTC has provided its comments to the Canada Revenue Agency (CRA) on its plan to review joint ventures for GST/HST purposes, pending its drafting of new or amended policy on the matter.

This July 17, 2012 letter was submitted by the CTC to the CRA’s Excise and GST/HST Rulings Directorate following a meeting between the two parties on May 22, 2012, and encourages the CRA to consider allowing nominee corporations meeting the requirements to be designated the “operator” in accordance with Excise Tax Act (ETA) Section 273 in a real property joint venture arrangement.

The letter includes a sample nominee agreement that deals with a single beneficial owner of real property, but represents one involving multiple beneficial owners whereby an election under ETA Section 273 could be made.