A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 51 - GST joint ventures  

Subdivision 51-C - Administrative matters  

51-70   Changing the participants etc. of GST joint ventures  

(1)  
The following actions may be taken in relation to a *GST joint venture :


(a) the *joint venture operator of the joint venture may, with the written agreement of an entity that *satisfies the participation requirements of the GST joint venture, add the entity to the joint venture;


(b) the joint venture operator may:


(i) if the joint venture operator is a *participant in the joint venture - leave the joint venture; or

(ii) remove from the joint venture a participant in the joint venture;


(c) another entity, nominated by the participants in the joint venture, that satisfies the requirements of paragraphs 51-10(c) and (f) may become the joint venture operator;


(d) the joint venture operator may dissolve the joint venture;

by notice given to the Commissioner, in the *approved form , by the joint venture operator, or (if subparagraph (b)(i) or paragraph (c) applies) by the new joint venture operator of the joint venture.

(2)  


The action takes effect from the start of the day specified in the notice (whether that day is before, on or after the day on which the notice was given to the Commissioner).

(3)  
However, if the notice was given to the Commissioner after the day by which the *joint venture operator of the joint venture, or the entity nominated to be the new joint venture operator of the joint venture, is required to give to the Commissioner a *GST return for the tax period in which the day specified in the notice occurs, the action takes effect from the start of:


(a) the day specified in the notice, if that day is approved by the Commissioner under section 51-75 ; and


(b) if paragraph (a) does not apply - such other day as the Commissioner approves under that section.

(4)  
A *GST joint venture is taken to be dissolved if:


(a) an entity ceases to be the *joint venture operator of the joint venture, and no other entity becomes the joint venture operator of the joint venture with effect from the day after the previous joint venture operator ceased to be the joint venture operator; or


(b) there are no longer 2 or more *participants in the joint venture.

(5)  
A notice that another entity has become the *joint venture operator of the *GST joint venture must be given to the Commissioner within 21 days after the other entity became the joint venture operator.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.


 

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