Thanks for the replies. So then does the fact that the 2 individuals are partners in the 6 person partnership with only 12.5% ownership alone require that all further business income be reported on GST returns? Or is it only the 50/50 partnership that is also GST registered make that requirement?
Also suppose partner E were to add a sole prop business, the way I understand that individual would not be associated and so would get their own 30,000 small supplier limit? Or what is meant by the line ‘more than half of the total of the partnership’s profits’ below pasted from the RC4022
You are considered to be associated with another person for GST/HST purposes if you meet any of the following conditions:
- If you are a corporation, you and another corporation are associated if you are associated for income tax purposes.
- If you are not a corporation, you and a corporation are associated if you control the corporation or you are a member of a group that controls the corporation and each member of that group is associated with each other member.
- You are associated with a partnership if the total of your share of the partnership’s profits and the share of all the persons with whom you are associated is more than half of the total of the partnership’s profits or would be more than half if the partnership had profits.
- You are associated with a trust if the total value of your interest in the trust and the interest in the trust of all the persons with whom you are associated, is more than half the total value of all interests in the trust.
- You are associated with another person if you are each associated with the same third person.