On February 6, 2014, the CRA issued its final warning, in the
form of GST/HST Notice No. 284, to joint ventures that
use bare trust nominees to file GST/HST returns on their behalf.
The CRA has always maintained that such practice is inconsistent
with section 273 of the Excise Tax Act (the
"ETA") and announced that it will no longer tolerate the
practice after 2014. Interestingly, as part of the 2014 Federal
Budget released less than a week afterwards, the Department of
Finance proposed to expand the section 273 election regime so that
more commercial joint ventures can benefit from the regime.
Generally speaking, a joint venture is where two or more persons
work together in a limited and defined business undertaking, which
does not constitute a partnership, a trust or a corporation, the
expenses and revenues of which will be distributed in mutually
agreed portions. See CRA's Policy Statement on distinguishing
between a joint venture and a partnership for GST purposes
