I am trying to understand the GST rules regarding the small supplier rule, specifically the term ‘associated’. Considering a scenario like this -
Partnership of 6 people (3 x husband and wife partners, partnership split is partner A 25 / partner B 25 / partner C 12.5 / partner D 12.5 / partner E 12.5 / partner F 12.5 ) is registered for GST with sales around 400,000.
Partner E and partner F (husband/wife) are 50/50 partners in a small farm partnership also registered for GST with annual sales at 25,000.
E and F have several other 50/50 partnership (Not corp) businesses together. Each line of business income is under the 30,000 threshold on its own but together would be more than 30k annually. There is only one CRA business number. There is a separate name registered for one business with the provincial name registry.
Now my question is are all the E/F 50/50 partnerships ‘associated’ for GST purposes? Or would all business activities by E and F be considered to be one partnership even though they are quite separate income streams. Reading the GST guide RC4022 it would appear that these partnerships are NOT associated as they do not consist of More than 50% share of the other? Also it would appear that if these businesses were sole props they would all be associated and required to be GST registered. So then in the case of husband and wife partnerships it would seem like one can get around the GST requirement by having multiple small 50/50 partnerships.
Thanks for any help