Question 1

What is a joint venture under Canadian law?

Accepted Answer

A joint venture is a business arrangement where two or more parties agree to pool resources for a specific project while maintaining separate legal identities, unlike a partnership.

Question 2

How are joint ventures taxed in Canada?

Accepted Answer

In an unincorporated JV, each venturer reports their share of income/losses on their own tax return. A GST/HST joint venture election under ETA s. 273 may simplify tax reporting.

Question 3

Does the Competition Act affect joint ventures?

Accepted Answer

Yes, the Competition Act (s. 90.1) applies to joint ventures between competitors. The arrangement must not substantially prevent or lessen competition in the relevant market.

Frequently Asked Questions