Simplified GST deal for joint ventures
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Tuesday, 1 October, 2002 - 22:00
JOINT-VENTURE parties formed for the exploration of mineral deposits can now register as a GST joint venture, simplifying the GST accounting for the entities involved.
This means that one member who acts as the joint-venture operator pays the GST and is entitled to the input tax credits on supplies, acquisitions and importations it makes on behalf of the other joint ventures.
Forming joint ventures in the mining sector is commonly used in WA as a means to minimise risks and share costs.
Those joint ventures involved in research and development, insurance operators, fishing, agriculture, cultivation or timber, distribution and transmission of water or electricity and downstream mineral processing companies are also eligible to apply.
A fact sheet released by the Australian Taxation Office says the tax commissioner will approve if: the joint venture is not a partnership; the entities apply jointly in the approved form; and the application nominates one of those entities, or another entity, as the joint-venture operator.
The operator may not necessarily be a party to the joint venture agreement to fulfil its obligations.
The operator must submit a business activity statement as is normal practice, including a net amount of GST payable or input tax credits claimable as a result of transactions made on behalf of the members of the GST joint venture.
This means that one member who acts as the joint-venture operator pays the GST and is entitled to the input tax credits on supplies, acquisitions and importations it makes on behalf of the other joint ventures.
Forming joint ventures in the mining sector is commonly used in WA as a means to minimise risks and share costs.
Those joint ventures involved in research and development, insurance operators, fishing, agriculture, cultivation or timber, distribution and transmission of water or electricity and downstream mineral processing companies are also eligible to apply.
A fact sheet released by the Australian Taxation Office says the tax commissioner will approve if: the joint venture is not a partnership; the entities apply jointly in the approved form; and the application nominates one of those entities, or another entity, as the joint-venture operator.
The operator may not necessarily be a party to the joint venture agreement to fulfil its obligations.
The operator must submit a business activity statement as is normal practice, including a net amount of GST payable or input tax credits claimable as a result of transactions made on behalf of the members of the GST joint venture.