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Joint Venture (GST/HST) Regulations (SOR/91-36)

Regulations are current to 2024-06-19 and last amended on 2011-03-03. Previous Versions

Joint Venture (GST/HST) Regulations



Registration 1990-12-18

Joint Venture (GST/HST) Regulations

P.C. 1990-2745  1990-12-18

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)Footnote * of the Excise Tax Act, is pleased hereby to make the annexed Regulations prescribing joint venture activities.

 [Repealed, SOR/2006-162, s. 3]


 In these Regulations, Act means the Excise Tax Act. (Loi)

Prescribed Activity

  •  (1) Subject to subsection (2), for the purposes of subsection 273(1) of the Act, the following activities are prescribed activities:

    • (a) the construction of real property, including feasibility studies, design work, development activities and the tendering of bids, where undertaken in furtherance of a joint venture for the construction of real property;

    • (b) the exercise of the rights or privileges, or the performance of the duties or obligations, of ownership of an interest in real property, including related construction or development activities, the purpose of which is to derive revenue from the property by way of sale, lease, licence or similar arrangement;

    • (c) the marketing by the operator of a joint venture, under any agreement between the operator and a co-venturer, of all or part of the co-venturer’s share of the output of the joint venture provided that the output arises from an activity conducted under the agreement referred to in subsection 273(1) of the Act;

    • (d) the transportation of natural gas liquids by means of a pipeline that operates as a common carrier of natural gas liquids;

    • (e) the operation of a facility that is used to generate electricity;

    • (f) the operation of a transmission line that is used to transmit electrical power;

    • (g) the processing of output (in this paragraph referred to as the “refinement”) that arises from the exploration or exploitation of a timber resource, including any jointly conducted exploration or exploitation activity of which the output is processed under the agreement referred to in subsection 273(1) of the Act in respect of the refinement and the marketing of the processed or unprocessed output that arises from that activity;

    • (h) the production of a fertilizer and its marketing;

    • (i) the disposal of waste, including the collection and transportation of waste that is in furtherance of that disposal;

    • (j) the exercise of rights or privileges, or the performance of duties or obligations, of ownership of an interest in an animal for the purposes of deriving revenue from prizewinning, stud service fees or sale;

    • (k) the maintenance of a road, other than maintenance that is an exempt supply;

    • (l) the operation and maintenance of the North Warning System;

    • (m) the operation of a farming business within the meaning of the Income Tax Act;

    • (n) the production of liquid methanol from natural gas;

    • (o) the generation and recording of seismic data; and

    • (p) the operation of a lumber, plywood, shake and shingle, pulp, paper or similar wood processing facility.

  • (2) An activity described in paragraph (1)(b) undertaken in the course of carrying out a joint venture in respect of real property that is not a residential complex is not a prescribed activity for the purposes of subsection 273(1) of the Act where a person that is a participant in the joint venture or is associated with or related to a participant in the joint venture uses all or a portion of the property otherwise than exclusively in the course of a commercial activity and

    • (a) is not the recipient of a taxable supply of a right that entitles the person to so use the property or to occupy or possess the property; or

    • (b) is the recipient of a supply referred to in paragraph (a) and does not pay tax in respect of that supply or pays tax in respect of that supply calculated on consideration that is less than the fair market value of the use, occupation or possession.

  • SOR/2011-56, s. 17

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