3 June 2010

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This ruling deals with the tax implications, arising from an Unincorporated Joint Venture Agreement (the UJV Agreement). In relation to income tax, this ruling provides guidance as to –

(a) whether the income received by the parties to the UJV Agreement will be income derived from mining operations;

(b) whether the UJV will be considered to be carrying on a trade as a partnership; and

(c) whether there will be any disposal of assets by the parties to the UJV Agreement as a result of their having entered into the UJV Agreement.

In relation to VAT, this ruling provides guidance as to –

(a) whether the UJV is conducting an enterprise separate from its members;

(b) the supply of the right to use the members’ assets by the members to the UJV; and

(c) the entitlement of the UJV to claim input tax in respect of the supply of the right to use the members’ assets and its liability for output tax upon dissolution of the assets, excluding the members’ assets for which the right of use is acquired.


Click here to download the ruling.




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