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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  

CCH Note

Act No 74 of 2010, s 3 and Sch 1 item 44 contains the following transitional provisions:

44 Transitional provisions for GST joint ventures  

GST joint ventures in existence before commencement


(1) Subject to subitems (5) to (8), on the commencement of this item [28 June 2010]:


(a) a GST joint venture that existed immediately before that commencement is taken to continue in existence as if:


(i) it had been formed, and its formation had been notified to the Commissioner, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999 as amended; and

(ii) its formation took effect immediately after that commencement; and


(b) the entities that were participants in the joint venture immediately before that commencement are taken, immediately after that commencement, to continue to be the participants in the joint venture; and


(c) the entity that was the joint venture operator of the joint venture immediately before that commencement is taken, immediately after that commencement, to continue to be the joint venture operator of the joint venture.

GST joint ventures approved, but not in existence, before commencement


(2) If, before the commencement of this item [28 June 2010], the Commissioner approved 2 or more entities as a GST joint venture but the approval did not take effect before that commencement, then, on the date of effect decided by the Commissioner under section 51-85 of the A New Tax System (Goods and Services Tax) Act 1999:


(a) the joint venture is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as amended; and


(b) the entities that jointly applied for that approval are taken to be the participants in the joint venture; and


(c) the entity that was nominated in the application to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.

GST joint ventures applied for, but not approved, before commencement


(3) If:


(a) before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST joint venture; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of approval of the joint venture, a date occurring before the date of that commencement; and


(c) the Commissioner did not approve the joint venture as a GST joint venture, and did not refuse the application, before that commencement;

then, on the date of effect specified in the application:


(d) the joint venture is taken to be formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as amended; and


(e) the entities that jointly applied for that approval are taken to be the participants in the joint venture; and


(f) the entity that was nominated in the application to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.


(4) If:


(a) before the commencement of this item [28 June 2010], 2 or more entities applied, in accordance with section 51-5 of the A New Tax System (Goods and Services Tax) Act 1999, for approval of a GST joint venture; and


(b) the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of approval of the joint venture, a date occurring before the date of that commencement; and


(c) the Commissioner did not approve the joint venture as a GST joint venture, and did not refuse the application, before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the formation of the GST joint venture took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day:


(i) the joint venture is taken to have been formed, and its formation is taken to have been notified to the Commissioner, in accordance with section 51-5 of that Act as so amended; and

(ii) the entities that jointly applied for approval of the joint venture are taken to be the participants in the joint venture; and

(iii) the entity that was nominated, in the application for approval of the joint venture, to be the joint venture operator of the joint venture is taken to be the joint venture operator of the joint venture.

Changes to participation etc. in GST joint ventures applied for, but not approved, before commencement


(5) If:


(a) before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:


(i) approve another entity as an additional participant in the joint venture; or

(ii) revoke the approval of one of the participants in the joint venture as a participant in the joint venture; or

(iii) approve another entity that satisfies the requirements of paragraphs 51-10(c) and (f) of that Act as the joint venture operator of the joint venture; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and


(c) the Commissioner:


(i) did not give the approval, or revoke the approval, as requested in the application; and

(ii) did not refuse the application;
before that commencement;

then, on and after that commencement, the joint venture is taken to continue in existence as if:


(d) the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the corresponding action referred to in paragraph 51-70(1)(a), (b) or (c) of that Act as so amended has been taken; and


(e) the action took effect on the date of effect specified in the application.


(6) If:


(a) before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-70 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to:


(i) approve another entity as an additional participant in the joint venture; or

(ii) revoke the approval of one of the participants in the joint venture as a participant in the joint venture; or

(iii) approve another entity that satisfies the requirements of paragraphs 51-10(c) and (f) of that Act as the joint venture operator of the joint venture; and


(b) the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the approval or revocation, a date occurring before the date of that commencement; and


(c) the Commissioner:


(i) did not give the approval, or revoke the approval, as requested in the application; and

(ii) did not refuse the application;
before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the approval or revocation took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the joint venture is taken to continue in existence as if:


(i) the Commissioner has been notified, in accordance with section 51-70 of that Act as so amended, that the corresponding action referred to in paragraph 51-70(1)(a), (b) or (c) of that Act as so amended has been taken; and

(ii) the action took effect on that day.

Revocation of approval of GST joint ventures applied for, but revocation not approved, before commencement


(7) If:


(a) before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the joint venture as a GST joint venture; and


(b) the application did not contain a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and


(c) the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;

then, on the date of effect specified in the application, the GST joint venture is taken to be dissolved as if the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the action referred to in paragraph 51-70(1)(d) of that Act as so amended has been taken.


(8) If:


(a) before the commencement of this item [28 June 2010], the joint venture operator of a GST joint venture applied, in accordance with section 51-75 of the A New Tax System (Goods and Services Tax) Act 1999, for the Commissioner to revoke the approval of the joint venture as a GST joint venture; and


(b) the application contained a request (however described) for the Commissioner to decide under section 51-85 of that Act, as a date of effect of the revocation, a date occurring before the date of that commencement; and


(c) the Commissioner did not revoke the approval as requested in the application, and did not refuse the application, before that commencement;

then:


(d) an application is taken to have been made to the Commissioner, under section 51-75 of that Act as amended, for the Commissioner to approve that date of effect as the day on which the revocation took effect; and


(e) if the Commissioner decides, under that section as so amended, to approve that day or another day - then, on that day or on that other day, the joint venture is taken to be dissolved as if:


(i) the Commissioner has been notified, in accordance with section 51-70 of that Act as amended, that the action referred to in paragraph 51-70(1)(d) of that Act as so amended has been taken; and

(ii) the action took effect on that day.

Subdivision 51-C - Administrative matters    View history reference

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

 View history reference

(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;
 View history reference


(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;
 View history reference


(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)  

 View history reference
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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