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  • Background

    Inherent in a joint venture operator's responsibilities is the making of supplies and acquisitions on behalf of the participants. In making these supplies and acquisitions, the joint venture operator may act as principal or agent.

    The exact legal relationship between operators, participants and third parties may not be clear, but it appears that in most cases the operator will be acting as agent of the participant.

    Under the GST Act, a joint venture is either a GST joint venture pursuant to Division 51 or it is not a GST joint venture. If the joint venture is not a GST joint venture then sections 51-30 and 51-35 have no application. Instead, the basic rules set out in Chapter 2 of the GST Act will apply.

      Last modified: 01 Sep 2015QC 16450