• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 6/27/2014

Canada - Joint ventures and GST/HST temporary relief 

June 27:  Participants in joint ventures that include nominee corporations or bare trusts only have a short period of time in which to take steps to benefit from the GST/HST temporary administrative “tolerance” policy of the Canada Revenue Agency (CRA).

Under this policy, the CRA will not assess GST/HST in certain circumstances when nominee corporations or bare trusts have been acting as operators of joint ventures, but did not qualify as participants. Participants of joint ventures that do not apply the CRA temporary policy correctly could see the nominee corporations or bare trusts assessed for denied input tax credits claimed for GST/HST paid on property and services acquired in the course of the joint venture’s commercial activities.

The CRA temporary policy is available for reporting periods ending before 1 January 2015.

Read a June 2014 report prepared by the KPMG member firm in Canada: Time Running Out—JVs Must Comply with Expiring GST/HST Policy

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