Excise Tax Act — E-15 273
Joint venture election 273 (1) Where a registrant (in this section referred to as the “operator”) is a participant in a joint venture (other than a partnership) under an agreement, evidenced in writing, with another person (in this section referred to as the “co-venturer”) for the exploration or exploitation of mineral deposits or for a prescribed activity, and the operator and the co-venturer jointly make an election under this subsection, (a) all properties and services that are, during the period the election is in effect, supplied, acquired, imported or brought into a participating province under the agreement by the operator on behalf of the co-venturer in the course of the activities for which the agreement was entered into shall, for the purposes of this Part, be deemed to be supplied, acquired, imported or brought into the province, as the case may be, by the operator and not by the co-venturer; (b) section 177 does not apply in respect of a supply referred to in paragraph (a); and (c) all supplies of property or services made, during the period the election is in effect, under the agreement by the operator to the co-venturer shall, for the purposes of this Part, be deemed not to be supplies to the extent that the property or services are, but for this section, acquired by the co-venturer for consumption, use or supply in the course of commercial activities for which the agreement was entered into. Exception (1.1) Paragraph (1)(a) does not apply to the acquisition, importation or bringing into a participating province of property or a service by an operator on behalf of a co-venturer where the property or service is so acquired, imported or brought into the province for consumption, use or supply in the course of activities that are not commercial activities and the operator (a) is a government other than a specified Crown agent; or (b) would not be required, because of an Act of Parliament other than this Act, to pay tax in respect of the acquisition, importation or bringing into the province of the property or service if the operator acquired or, imported the property or service or brought it into the province for that purpose otherwise than on behalf of the co-venturer. Assignee of interest in joint venture (2) For the purposes of this section, where a particular person has made an election under this section with respect to a joint venture and at any time during the period the election is in effect another person becomes a participant in the venture by acquiring an interest in it from the particular person, the other person shall be deemed to have made, at that time, an election under this section in accordance with subsection (4) with respect to the venture jointly with the operator of the venture. Revocation (3) An operator and a co-venturer who have jointly made an election under this section may jointly revoke the election. Form of election or revocation (4) An election or revocation under this section made jointly by an operator and a co-venturer is not a valid election or revocation unless it is made in prescribed form containing prescribed information and specifies the effective date of the election or revocation. Joint and several liability (5) Where a registrant and another person make, or purport to make, an election under subsection (1) in respect of an agreement between the registrant and the person, the registrant and the other person are jointly and severally liable for all obligations under this Part that result from the activities for which the agreement was entered into and that are or would be, but for this section, engaged in by the registrant on behalf of the other person. Joint venture beginning before 1991 (6) Where an operator who is a participant in a joint venture (other than a partnership) under an agreement referred to in subsection (1) entered into before 1991 with a co-venturer files a return for the operator’s first reporting period beginning after 1990 in which all properties and serv