EXCISE TAX ACTGames of Chance (GST/HST) RegulationsP.C.1990-2737199012
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His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)* of the Excise Tax Act, is pleased hereby to make the annexed Regulations prescribing games of chance and prescribing registrants making supplies of a right to participate in games of chance.S.C. 1990, c. 45, s. 12[Repealed, SOR/2011-56, s. 8]Previous VersionINTERPRETATIONDefinition of ActIn these Regulations, Act means the Excise Tax Act.
SOR/2011-56, s. 9.
Previous VersionPRESCRIBED REGISTRANTS[SOR/98-440, ss. 3, 7(R)]The following persons are prescribed registrants for the purposes of subsection 188(5) of the Act:the Atlantic Lottery Corporation;the British Columbia Lottery Corporation;the Manitoba Lotteries Corporation;the Ontario Lottery and Gaming Corporation;la Société des loteries et courses du Québec;the Western Canada Lottery Corporation;the Interprovincial Lottery Corporation;the Alberta Gaming and Liquor Commission;the Saskatchewan Liquor and Gaming Authority;the Saskatchewan Gaming Corporation;the New Brunswick Lotteries and Gaming Corporation;the Nova Scotia Gaming Corporation; anda corporation that is a wholly-owned subsidiary of a registrant referred to in any paragraph of this section (other than paragraph (g) and this paragraph) and that is referred to in section 15.
SOR/98-440, ss. 4, 7(R);
SOR/2011-56, s. 10.
Previous VersionPRESCRIBED GAMES OF CHANCEPrescribed games of chanceA game of chance that is conducted by a person referred to in section 3 is a prescribed game of chance for the purposes of paragraph 1(i) of Part V.1 of Schedule V to the Act and section 5.1 of Part VI of that Schedule.
SOR/98-440, ss. 5, 7(R).
NET TAX OF PRESCRIBED REGISTRANTSInterpretationDefinitionsThe definitions in this subsection apply in this Part.casino operating serviceservice d’exploitation de casinocasino operating service means a service of managing, administering and carrying on the day-to-day operations of a provincial gaming authority’s gaming activities that are connected with a casino of the authority. (service d’exploitation de casino)charitable proceeds from Superstar Bingoproduit du bingo Superstarcharitable proceeds from Superstar Bingo means payments made by the Ontario Lottery Corporation to the Provincial Bingo Charitable Activities Association where the payments are equal to a percentage of the proceeds from the operation of the bingo game known as Superstar Bingo conducted by the Corporation and the Association receives the payments as agent for other non-profit organizations or charities. (produit du bingo Superstar)considerationcontrepartieconsideration, in respect of a supply of a service (other than a service referred to in subsection (2)) made to a provincial gaming authority by a distributor of the authority, does not include a reimbursement. (contrepartie)distributordistributeurdistributor has the meaning assigned by subsection 188.1(1) of the Act. (distributeur)face valuevaleur nominaleface value of a right to play or participate in a game of chance that is evidenced by a ticket, card or other printed device, or of such a device, means the amount shown on the device as its price inclusive of tax under Part IX of the Act. (valeur nominale)gaming activityactivité de jeugaming activity of a provincial gaming authority means a commercial activity of the authority except to the extent to which the activity involves the making of non-gaming supplies by the authority and includes anything done by the authority in connection with the acquisition, establishment, disposition or termination of the commercial activity. (activité de jeu)imputed input tax creditcrédit de taxe sur les intrants imputéimputed input tax credit, in respect of property or a service for a reporting period of a provincial gaming authority, means the amount that would be the input tax credit in respect of the property or service for the period if the amount in respect of the property or service that the authority is required under any of subparagraphs (d)(i) to (iii) of the description of A1 in subsection 7(7) to include in determining the imputed tax payable by the authority for the period were tax that became payable by the authority during the period in respect of that property or service. (crédit de taxe sur les intrants imputé)instant win gameloterie instantanéeinstant win game means a game of chance the right to play or participate in which is evidenced by a ticket, card or other printed device that contains sufficient information to ascertain, without reference to any other information, whether a holder of the device is entitled to receive a prize or winnings. (loterie instantanée)instant win ticketbillet de loterie instantanéeinstant win ticket means a ticket, card or other printed device that is or is evidence of a right to play or participate in an instant win game. (billet de loterie instantanée)lease intervalpériode de locationlease interval, in respect of a supply by way of lease of property, means a period to which a payment forming part of the consideration for the supply is attributable and that is all or part of the period during which possession or use of the property is provided under the agreement for the supply.manufacturingfabricationmanufacturing, in respect of property, includes the production, processing or packaging of the property. (fabrication)non-gaming activityactivité non liée au jeunon-gaming activity of a provincial gaming authority means a commercial activity of the authority except to the extent to which the activity is a gaming activity of the authority. (activité non liée au jeu)non-gaming reimbursementmontant de remboursement non lié au jeunon-gaming reimbursement means a reimbursement paid or payable by a provincial gaming authority that is in respect of an expense incurred by a distributor of the authority and that is part of the cost to the authority of making non-gaming supplies.non-gaming supplyfourniture non liée au jeunon-gaming supply means a supply other thana supply of a service of accepting a bet on a game of chance, race or other event or occurrence;a supply of a right to play or participate in a game of chance, or a ticket, card or other printed device that is evidence of such a right, made to a distributor of a provincial gaming authority;a supply referred to in paragraph 188.1(4)(b) of the Act that, but for that paragraph, would be a supply by a provincial gaming authority to a distributor of the authority;a supply of a prize in kind; anda promotional supply. (fourniture non liée au jeu)non-taxable reimbursementmontant de remboursement non taxablenon-taxable reimbursement means a reimbursement paid or payable to a distributor of a provincial gaming authority in respect of an expense incurred by the distributor in connection with supplying a casino operating service to the authority, where the expense isconsideration (other than interest) for a supply made to the distributor (other than a supply that would be deemed under subsection 188.1(4) of the Act not to be a supply if it were made to the authority instead of to the distributor) that isan exempt supply of personal property or a service,a zero-rated supply, ora taxable supply all or part of the consideration for which is, due to the application of section 166 of the Act, not included in calculating the tax payable in respect of the supply; orproperty tax payable by the distributor. (montant de remboursement non taxable)period costcoût imputableperiod cost for a particular period, in respect of a supply to a provincial gaming authority of tangible personal property or real property made by way of lease, means the total ofthe total of all amounts each of which is the portion of the capital cost of the property to the supplier that is reasonably allocated to a lease interval for which a payment forming part of the consideration for the supply becomes due in the particular period or is paid in the particular period without having become due;the total of all amounts each of which is an amount not included in paragraph (a) that is a cost to the supplier that is reasonably attributable to the making of the supply for a lease interval referred to in that paragraph other than, in the case of a supply to which section 16 applies, the portion, if any, of that cost that is deducted from the value of the consideration for the supply in determining under that section the amount deemed to be the tax payable in respect of the supply;any capital loss on the disposition of the property by the supplier that is recovered from the authority during the particular period; andan amount that, at any time in the particular period, the supplier recognizes in the supplier’s books of account as an unrecoverable loss, being the amount by which the unamortized capital cost of the property exceeds its fair market value at that time.prize in kindprix en natureprize in kind means property or a service that is given as a prize or winnings in a game of chance. (prix en nature)promotional supplyfourniture de promotionpromotional supply, by a provincial gaming authority, meansa supply of property (other than a supply by way of sale of capital property of the authority) made by the authority for no consideration or for nominal consideration; ora supply by way of sale ofa service, or intangible personal property, that was purchased by the authority, ortangible personal property (other than capital property of the authority),made by the authority for consideration that is less than the basic cost to the authority of the property or service.property taximpôt foncierproperty tax means a tax imposed by a municipality or other local authority on real property or in respect of the ownership, occupation or use of real property. (impôt foncier)provincial gaming authorityadministration provinciale de jeux et parisprovincial gaming authority means a registrant that is prescribed by section 3, other than paragraph 3(g) or (m). (administration provinciale de jeux et paris)reimbursementmontant de remboursementreimbursement means an amount of consideration (as defined in subsection 123(1) of the Act) thatis paid or payable by a provincial gaming authority to a distributor of the authority as an allowance or reimbursement in respect of an expense incurred or to be incurred by the distributor otherwise than as an agent of the authority; andis invoiced or charged to the authority separately from amounts that are not in respect of specific expenses incurred or to be incurred by the distributor. (montant de remboursement)rightdroitright of a provincial gaming authority has the meaning assigned by subsection 188.1(1) of the Act. (droit)Basic costFor the purposes of this Part, the basic cost to a provincial gaming authority of personal property or a service is equal toin the case of food or a beverage prepared by the authority, the total of all consideration paid or payable by the authority to purchase the food or beverage and the ingredients used in its preparation, to the extent that the consideration is a cost to the authority of the prepared food or beverage;in the case of particular tangible personal property (other than food or a beverage) manufactured in whole or in part by or for the authority, the total of all consideration paid or payable by the authority to purchase the following property and services to the extent that the consideration is a cost to the authority of the particular property:tangible personal property incorporated into or forming a constituent or component part of the particular property,tangible personal property consumed or expended directly in the process of manufacturing the particular property, andservices of manufacturing the particular property in whole or in part;in the case of tangible personal property that is purchased by the authority and is not further manufactured by or for the authority, the consideration paid or payable by the authority to purchase the property; andin the case of intangible personal property or a service, the consideration paid or payable by the authority to purchase the property or service.Exclusion from promotional supplyDespite the definition promotional supply in subsection (1), a supply of a particular property or service made by a provincial gaming authority is not included in that definition if the authority would, in the absence of this subsection, be entitled to include, in determining a total for A2 in subsection 7(7), or a total for B in section 8, all or a portion of an input tax credit in respect ofthe particular property or service;a service of manufacturing the particular property; orother tangible personal property acquired, imported or brought into a participating province by the authority for use as an ingredient in preparing the particular property or for the purpose of being incorporated into, forming a constituent or component part of, or being consumed or expended directly in the process of manufacturing, the particular property.Reduction in considerationFor the purpose of the definition promotional supply in subsection (1), if, in making a supply of property or a service, a provincial gaming authorityaccepts from the recipient of the supply a coupon, a voucher, a receipt, a ticket, a device that, without regard to section 181.2 of the Act, is a gift certificate or any other device that may be exchanged for the property or service or that entitles the recipient to a reduction of, or a discount on, the price of the property or service (the amount of the reduction or discount is in this subsection referred to as the “coupon value”), orapplies, as a discount on, or credit against, the price of the property or service, an amount (in this subsection referred to as the “credit value”) that has been credited in favour of the recipient by the authority,the consideration for the supply is deemed to be equal to the amount that would, without regard to section 181 of the Act, be the consideration for the supply less the coupon value or credit value, as the case may be.ExceptionSubsection (2.2) does not apply in respect of a supply of property or a service by a provincial gaming authority ifsubsection 181(2) of the Act applies in respect of the supply;the consideration for the supply is reduced in circumstances in which subsection 232(2) of the Act applies; orthe property or service is given in exchange, or the reduction, discount or credit is provided, in lieu of refunding or reducing all or part of the consideration for a non-gaming supply by the authority of another property or service.Accepting and making a betFor the purposes of this Part, the sale of a right to play or participate in a game of chance conducted by a provincial gaming authority to a person other than a distributor of the authority is deemed to be a supply of a service of accepting a bet on the game in an amount equal to the selling price of the right, and the purchase of the right is deemed to be the betting of that amount on the game.
SOR/98-440, ss. 6, 7(R);
SOR/2011-56, s. 11.
Previous VersionNet Tax of Provincial Gaming AuthorityTotal net taxThe net tax of a provincial gaming authority for a reporting period of the authority is the positive or negative amount determined by the formulaA + BwhereAis the authority’s net tax for the period attributable to gaming activities determined in accordance with section 7; andBis the authority’s positive or negative net tax for the period attributable to non-gaming activities determined in accordance with section 8.
SOR/98-440, ss. 6, 7(R).
Net tax attributable to gaming activitiesA provincial gaming authority’s net tax attributable to gaming activities for a reporting period of the authority is the amount determined by the formulaA - BwhereAis the total of all amounts that the authority is required under subsection (2) or (3) to add in determining its net tax for the period; andBis the total of all credits of the authority for the period in respect of prizes or winnings determined under subsection (4) or (5) and the authority’s additional credit in respect of gaming activities for the period determined under subsection (6).Bet receivedWhere a person bets an amount with a provincial gaming authority (other than by purchasing an instant win ticket from a distributor of the authority), the authority shall, in determining its net tax attributable to gaming activities for the reporting period in which it becomes ascertainable whether an amount is payable as a prize or winnings in respect of the bet, add the amount determined by the formula(A/B) × (C - D)whereAisif the person placed the bet in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act;Bis the total of 100% and the percentage determined for A;Cis the total amount that is given by the person in respect of the bet, including any amounts payable by the person in respect of the bet as or on account of tax under Part IX of the Act or under an Act of the legislature of a province; andDis the amount of any tax payable under an Act of the legislature of a province by the person in respect of the bet.Supply of instant win ticketWhere a provincial gaming authority has delivered or agreed to deliver an instant win ticket to a distributor of the authority and, during a reporting period of the authority, the distributor pays or becomes liable to pay an amount in respect of the ticket to the authority, the authority shall, in determining its net tax attributable to gaming activities for the period, add the amount determined by the formula(A/B) × (C - D)whereAisif the instant win ticket was or is to be delivered to the distributor in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act;Bis the total of 100% and the percentage determined for A;Cis the face value of the ticket, including any amounts payable by the distributor in respect of the ticket as or on account of tax under an Act of the legislature of a province; andDis the amount of any tax payable under an Act of the legislature of a province by the distributor in respect of the ticket.Prizes and winningsA credit of a provincial gaming authority for a reporting period of the authority in respect of an amount of money that the authority becomes liable, during the period, to pay as a prize or winnings in a game of chance conducted by the authority (other than a prize or winnings in respect of a bet made by purchasing an instant win ticket from a distributor of the authority) is the amount determined by the formula(A/B) × CwhereAisif the bet in respect of which the prize or winnings becomes payable was placed in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act;Bis the total of 100% and the percentage determined for A; andCis the amount payable as a prize or winnings.Prize on instant win ticketA credit of a provincial gaming authority for a reporting period of the authority in respect of a prize or winnings in respect of an instant win ticket of a particular kind that the authority has delivered or agreed to deliver to a distributor of the authority and in respect of which the distributor pays or becomes liable to pay, during the period, an amount to the authority is the amount determined by the formula(A/B) × CwhereAisif the instant win ticket was or is to be delivered to the distributor in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act;Bis the total of 100% and the percentage determined for A; andCis the expected value, determined on the basis of mathematical probability, of the prize or winnings in respect of each instant win ticket of that kind supplied by the authority.Additional creditA provincial gaming authority’s additional credit in respect of gaming activities for a reporting period of the authority is the amount determined by the formulaA - B - CwhereAis the total of all amounts each of which is an amount that the authority is required, under subsection (2) or (3), to add in determining its net tax for the period;Bis the total of all amounts each of which is a credit of the authority in respect of a prize or winnings for the period determined under subsection (4) or (5); andCis the imputed tax payable by the authority on gaming expenses for the period determined under subsection (7).Imputed tax on gaming expensesThe imputed tax payable by a provincial gaming authority on gaming expenses for a particular reporting period of the authority is the amount determined by the formulaA + B + C + D + EwhereAis the amount determined by the formulaA1 - A2whereA1is the total of all amounts each of which isan amount of tax (other than tax that is deemed under subsection 206(2) or (3) of the Act to have been paid or that is calculated on a reimbursement) that became payable during the particular period, or that was paid during the particular period without having become payable, by the authority in respect of property or a service (other than a casino operating service or a prize in kind) that was acquired or imported by the authority, (a.1) twice the amount determined under section 13 for the particular period as the imputed tax payable by the authority in respect of expenses incurred by the Interprovincial Lottery Corporation,an amount of tax that the authority is deemed to have collected during the period under subsection 206(5) of the Act,an amount (other than an amount described in subparagraph (d)(ii)) of tax in respect of a supply deemed under subsection 143(1) of the Act to have been made outside Canada (other than a supply described in subsection 178.8(2) of the Act) that would have become payable by the authority during the particular period if the supply had been made in Canada by a registrant,the total of all amounts each of which is determined by the formulaA3 × A4whereA3is a reimbursement (other than a non-gaming reimbursement) that became payable during the particular period, or that was paid during the particular period without having become payable, by the authority to a distributor of the authority, other thana non-taxable reimbursement,a reimbursement of the cost to the distributor of a right to play or participate in a game of chance given away free of charge by the distributor,a reimbursement of salaries, wages or other remuneration paid or payable by the distributor to an employee of the distributor to the extent that that remuneration is a cost to the distributor of supplying a casino operating service to the authority, ora reimbursement of an expense incurred by the distributor in the course of supplying a service referred to in subparagraph 188.1(4)(a)(iii) of the Act, andA4isif the reimbursement is in respect of a supply made by the distributor to the authority in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act, andtwice the value of all amounts each of which isan amount that, but for subsection 156(2) or 167(1.1) of the Act, would have become payable by the authority during the particular period as tax under Division II of Part IX of the Act in respect of a supply made to the authority,an amount that would have become payable by the authority during the particular period as tax under Division IV or IV.1 of Part IX of the Act if the authority’s gaming activities were not commercial activities,the amount by whichthe total of all amounts each of which is tax that would have become payable by the authority during the particular period under Division II of Part IX of the Act in respect of a supply (other than a supply referred to in subparagraph (iv) or (v)) made to the authority that is a taxable supply of property or a service for consideration less than fair market value, or an exempt supply by way of lease of tangible personal property or real property, if the supply had been a taxable supply made for consideration equal to fair market value,exceedsthe total amount of tax under that Division that became payable by the authority during the particular period in respect of supplies included in clause (A),the amount of tax that would have become payable by the authority during the particular period under Division II of Part IX of the Act in respect of an exempt supply of real property made to the authority by way of lease by a wholly-owned subsidiary of the authority that had acquired the property for consideration equal to fair market value if the supply had been a taxable supply and if the amount of consideration for the supply that had become due in the period or was paid in the period without having become due were equal to the greater of the period cost of the supply for the period and the total of any amounts of consideration for the supply, as otherwise determined for the purposes of Part IX of the Act, that became due in the period or were paid in the period without having become due, orthe amount, if any, by whichthe amount of tax that would have become payable by the authority during the particular period under Division II of Part IX of the Act in respect of a taxable supply of property made to the authority by way of lease by a wholly-owned subsidiary of the authority that had acquired the property for consideration equal to fair market value if consideration for the supply, equal to the period cost of the supply for the period, became due in the period and if that were the only consideration for the supply that became due in the period or was paid in the period without having become due,exceedsthe total amount of tax under that Division that became payable by the authority during the particular period in respect of the supply, andA2is the total of all amounts each of which is determined by the formulaA5 × A6whereA5isan input tax credit of the authority for the particular period that is in respect of an amount included under paragraph (a), ortwice the value of an imputed input tax credit of the authority for the particular period that is in respect of an amount included under any of subparagraphs (d)(i) to (iii), of the description of A1 in determining the total for A1 for the particular period, andA6is the extent (expressed as a percentage) to which the authority is, subject to section 9, entitled to include the input tax credit or imputed input tax credit, as the case may be, in determining this total for the particular period;Bis the total of all amounts each of which is an amount of tax that would have become payable by the authority during the particular period in respect of consideration for a supply of a casino operating service made to the authority by a distributor of the authority if subsection 188.1(4) of the Act did not apply to the supply and the consideration for the supply were equal to the amount determined by the formulaB1 - (B2 + B3)whereB1is the consideration for the casino operating service determined under Part IX of the Act without reference to that subsection,B2is the total of all amounts each of which is determined by the formulaB4 × B5whereB4is a particular amount of salaries, wages or other remuneration (other than an amount described in the description of B6) paid or payable by the distributor, or by a person (in this description and in the description of B6 referred to as the “distributor’s subsidiary”) that is a wholly-owned subsidiary of the distributor, to an employee of the distributor or of the distributor’s subsidiary, andB5is the extent (expressed as a percentage) to which the particular amount isa cost to the distributor of supplying the casino operating service to the authority, ora cost to the authority of the management, administration and carrying on of the day-to-day operations of the authority’s gaming activities that are connected with a casino of the authority, andB3is the total of all amounts each of which is determined by the formulaB6 × B7whereB6is a particular amount that is paid by, or is in respect of a supply of property or a service made by, the distributor or the distributor’s subsidiary to an employee of the distributor or of the distributor’s subsidiary or to a person related to such an employee, and that the employee is required under section 6 of the Income Tax Act to include in computing the employee’s income for a taxation year of the employee, andB7is the extent (expressed as a percentage) to which the particular amount isa cost to the distributor of supplying the casino operating service to the authority, ora cost to the authority of the management, administration and carrying on of the day-to-day operations of the authority’s gaming activities that are connected with a casino of the authority;Cis the total of all amounts each of which is an amount determined by the formulaC1 × C2whereC1is the total of all amounts each of which is an amount that, in the absence of subsection 188.1(4) of the Act, would be consideration (other than charitable proceeds from Superstar Bingo) for a supply (other than a supply of a casino operating service) by a distributor of the authority to the authority or would be a reimbursement paid or payable by the authority to a distributor of the authority (other than a reimbursement that is a non-gaming reimbursement, a non-taxable reimbursement, a reimbursement of the cost to the distributor of a right to play or participate in a game of chance given away free of charge by the distributor or a reimbursement of salaries, wages or other remuneration paid or payable by the distributor to an employee of the distributor to the extent that that remuneration is a cost to the distributor of supplying a casino operating service to the authority), whereif the amount represents a commission in respect of the sale, by the distributor on behalf of the authority, of a right to play or participate in a game of chance (other than an instant win game), it became ascertainable in the particular period whether a prize or winnings were payable in respect of the right, andin any other case, the amount became due to the distributor during the particular period or was paid to the distributor during the particular period without having become due, andC2isif the particular supply by the distributor to the authority relates to the making of supplies of rights of the authority in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act;Dis the total of all amounts each of which is a positive or negative amount determined, in respect of each distributor of the authority, by the formula(D1 - D2) × D3whereD1is the amount by whichthe total face value of all rights of the authority evidenced by tickets, cards or other printed devices that were acquired by the distributor from the authority for the purpose of supply on the distributor’s own behalf otherwise than as prizes in kind andin the case of instant win tickets, the consideration for the supplies of which by the authority to the distributor became due during the particular period or was paid during the particular period without having become due, orin any other case, in respect of which it became ascertainable in the particular period whether amounts were payable as prizes or winningsexceedsthe total amount paid or payable for the supplies referred to in paragraph (a) made by the authority to the distributor,D2is the amount by whichthe total face value of all rights of the authority evidenced by tickets, cards or other printed devices that were supplied to the distributor by the authority, the face value of which is included in determining the value for D1 for the particular period or a preceding reporting period of the authority and that are returned by the distributor to the authority during the particular periodexceedsthe total amount paid or payable for the supplies referred to in paragraph (a) made by the authority to the distributor, andD3isif the distributor acquired the devices for the purpose of supplying them in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, andin any other case, the rate set out in subsection 165(1) of the Act; andEisif the particular period includes the last day of February in a calendar year, the total of all amounts, if any, each of which is determined by the formulaE1 × (100% - E2) × E3whereE1is an amount (in this paragraph referred to as the “benefit amount”)thatwas paid by the authority, oris in respect of a supply of property or a service (other than property or a service in respect of which the authority was not entitled to claim an input tax credit because of subsection 170(1) of the Act) made by the authority to an individual who was an employee of the authority during the previous calendar year or to a person related to the individual, andthat the individual is required under section 6 of the Income Tax Act to include in computing the individual’s income for that previous calendar year,E2is the extent (expressed as a percentage) to which the benefit amount is a cost to the authority of making non-gaming supplies other than the supply referred to in clause (i)(B) of the description of E1, andE3iswhere the benefit amount is required under paragraph 6(1)(k) or (l) of the Income Tax Act to be included in computing the individual’s income,if the last establishment of the authority at which the individual ordinarily worked or to which the individual ordinarily reported in the previous calendar year in relation to the individual’s office or employment with the authority is located inOntario, New Brunswick or Newfoundland and Labrador, the percentage referred to in paragraph 2(a) of the Automobile Operating Expense Benefit (GST/HST) Regulations,Nova Scotia, the percentage referred to in paragraph 2(b) of the Automobile Operating Expense Benefit (GST/HST) Regulations, or[Repealed, SOR/2012-191, s. 3]Prince Edward Island, the percentage referred to in paragraph 2(c.1) of the Automobile Operating Expense Benefit (GST/HST) Regulations, andin any other case, 3%, andin any other case, the amount determined by the formulaE4/E5whereE4isif the benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act and the last establishment at which the individual ordinarily worked or to which the individual ordinarily reported in the previous calendar year in relation to the individual’s office or employment with the authority is located in a participating province, the total of 4% and the tax rate for the participating province, and[Repealed, SOR/2012-191, s. 3]in any other case, 4%, andE5is the total of 100% and the percentage determined for E4, andin any other case, zero.
SOR/98-440, ss. 6, 7(R);
SOR/2011-56, s. 12;
SOR/2012-191, s. 3;
SOR/2013-44, s. 1.
Previous VersionNet tax attributable to non-gaming activitiesA provincial gaming authority’s net tax attributable to non-gaming activities for a particular reporting period of the authority is the positive or negative amount determined by the formulaA - BwhereAis the total of all amounts each of which isan amount that became collectible by the authority during the particular period, or that was collected by the authority during the particular period without having become collectible, as or on account of tax under Division II of Part IX of the Act in respect of a non-gaming supply made by the authority,an amount that is required under any of sections 231 to 236 of the Act to be added in determining the authority’s net tax for the particular period, oran amount that is required under section 236.01 of the Act to be added in determining the authority’s net tax for the particular period, but only to the extent that the authority would not be restricted from including the amount under the description of B as a consequence of subsection 9(1); andBis the total ofall amounts each of which isan input tax credit (other than an input tax credit referred to in paragraph(b)) for the particular period or a preceding reporting period of the authority,an amount in respect of a non-gaming supply that may be deducted under any of sections 231, 232 and 234 of the Act in determining the authority’s net tax for the particular period, oran amount that may be deducted under section 236.01 of the Act in determining the authority’s net tax for the particular period,claimed in the return filed under Division V of Part IX of the Act by the authority for the particular period,twice the value of all amounts each of which isan input tax credit of the authority for the particular period or a preceding reporting period of the authority in respect of tax deemed under subsection 206(2) or (3) of the Act to have been paid by the authority, oran input tax credit of the authority for the particular period or a preceding reporting period of the authority determined under subsection 193(1) of the Act,claimed in the return filed under Division V of Part IX of the Act by the authority for the particular period, andall amounts each of which is determined by the formulaB1 × (100% - B2)whereB1is an amount ofa reduction, refund or credit of tax for which a credit note is received, or a debit note is issued, in the particular period by the authority in circumstances in which subsection 232(3) of the Act applies, ora rebate received in the particular period by the authority on account of tax in the circumstances described in section 181.1 of the Act, andB2is the extent (expressed as a percentage) to which the authority was entitled to claim an input tax credit in respect of that tax in determining the authority’s net tax for any reporting period.
SOR/98-440, ss. 6, 7(R);
SOR/2012-191, s. 4.
Previous VersionRestriction on input tax credits, etc.An input tax credit (other than an input tax credit determined under subsection 193(1) of the Act), or an imputed input tax credit, in respect of property or a service shall not be included in determining a total for A2 in subsection 7(7), or a total for B in section 8, to the extent that the property or servicewas acquired or imported, or brought into a participating province, by the authority for consumption or use in gaming activities of the authority, in improving capital property used in gaming activities of the authority, in making promotional supplies or in making supplies of financial services that relate to gaming activities of the authority;was acquired or imported, or brought into a participating province, by the authority for the purpose of making a supply of the property or service that is a promotional supply;is tangible personal property that was acquired or imported, or brought into a participating province, by the authority for use as an ingredient in preparing food or beverages the supply of which by the authority is a promotional supply;is tangible personal property that was acquired or imported, or brought into a participating province, by the authority for the purpose of being incorporated into or forming a constituent or component part of, or being consumed or expended directly in the process of manufacturing, particular tangible personal property (other than food or beverages) that the authority manufactures or engages another person to manufacture for the purpose of making a supply of the particular property that is a promotional supply; oris a service that is the manufacturing for the authority of tangible personal property (other than food or beverages) and that the authority acquires for the purpose of making a supply of the property that is a promotional supply.Use of capital propertyFor the purposes of applying section 193 of the Act and the provisions of Subdivision d of Division II of Part IX of the Act in determining the net tax of a provincial gaming authority, the following rules apply:subsections 141(1) to (4), 193(2), 199(2) to (4) and 200(2) and (3) of the Act do not apply to the authority;subsection 193(1) of the Act applies, with such modifications as the circumstances require, to all property (other than a passenger vehicle) acquired or imported by the authority for use as capital property of the authority as if the authority were not a public sector body and, in the case of personal property, the property acquired or imported by the authority for that use were real property;subsections 206(2) to (5) of the Act apply, with such modifications as the circumstances require, to personal property acquired or imported by the authority for use as capital property of the authority, and to improvements to personal property that is capital property of the authority, as if the personal property were real property and the references in those subsections to “acquired” were references to “acquired or imported”;where the authority acquires or imports property for use as capital property of the authority in commercial activities of the authority, the authority is deemed to have acquired or imported the property for use in the authority’s commercial activities only to the extent to which the property was acquired or imported for use in the authority’s non-gaming activities; andwhere the authority uses property as capital property of the authority in commercial activities of the authority, that use is deemed to be use in the authority’s commercial activities only to the extent to which the property is used in the authority’s non-gaming activities.Double countingAn amount shall not be included in determining a total for A in subsection 7(1) or section 8 for a reporting period of a provincial gaming authority to the extent that that amount was included in that total for a preceding reporting period of the authority.RestrictionAn amount shall not be included in determining a total for B in section 8 for a particular reporting period of a provincial gaming authority to the extent that that amount was claimed or included in that total in determining the net tax for a preceding reporting period of the authority unlessthe authority was not entitled to claim the amount in determining the net tax for that preceding period only because the authority did not satisfy the requirements of subsection 169(4) of the Act in respect of the amount before the return for that preceding period was filed; andwhere the authority is claiming the amount in a return for the particular reporting period and the Minister has not disallowed the amount as an input tax credit in assessing the net tax of the authority for that preceding reporting period,the authority reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the authority made an error in claiming that amount in determining the net tax of the authority for that preceding period, andwhere the authority does not report the error to the Minister at least three months before the end of the period after which an assessment of the net tax of the authority for that preceding period cannot, because of subsection 298(1) of the Act, be made, the authority pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable penalty and interest to the Receiver General.Amounts refunded or remittedAn amount shall not be included in determining a total for B in section 8 for a reporting period of a provincial gaming authority to the extent that, before the end of the period, the amount was rebated, refunded or remitted to the authority under any Act of Parliament.ApplicationSections 231 to 236.01 of the Act do not apply for the purpose of determining the net tax of a provincial gaming authority except as otherwise provided in this Part.Method of determining extent of use, etc.The methods used by a person in a fiscal year to determinethe extent to which properties or services are acquired or imported or brought into a participating province by the person for consumption or use in particular activities or for a particular purpose, andthe extent to which the consumption or use by the person of properties or services is in particular activities or for a particular purpose,shall be fair and reasonable and shall be used consistently by the person throughout the year.
SOR/98-440, ss. 6, 7(R);
SOR/2011-56, s. 13;
SOR/2012-191, s. 5.
Previous VersionInterprovincial Lottery Corporation and its MembersNet tax of Interprovincial Lottery CorporationThe net tax for a reporting period of the Interprovincial Lottery Corporation is the amount that would be its net tax for the period determined under section 225 of the Act if the amount collectible by it as or on account of tax under Division II of Part IX of the Act in respect of each supply made by it to a provincial gaming authority were the amount determined in accordance with section 11.
SOR/98-440, ss. 6, 7(R).
Presumption concerning tax on supplyFor the purposes of this Part and for the purposes of applying Part IX of the Act in determining the net tax of the Interprovincial Lottery Corporation, if the Corporation makes a supply of property or a service to a provincial gaming authority, the tax payable in respect of the supply is deemed to be the tax that would be payable in respect of the supply if the value of the consideration for the supply were the amount determined by the formulaA - BwhereAis the value of the consideration for the supply determined without reference to this section; andBis the total of all amounts each of which is determined by the formulaB1 × B2whereB1is a particular amount that issalary, wages or other remuneration paid or payable to an employee of the Corporation, other than an amount that the employee is required under section 6 of the Income Tax Act to include in computing the employee’s income for the purposes of that Act,consideration paid or payable by the Corporation for an exempt supply of a service or a zero-rated supply, ora tax, duty or fee prescribed for the purposes of section 154 of the Act, andB2is the extent (expressed as a percentage) to which the particular amount is a cost to the Corporation of supplying the property or service.
SOR/98-440, ss. 6, 7(R);
SOR/2011-56, s. 14(E).
Previous VersionPresumption concerning rights and distributionsFor the purposes of this Part and for the purposes of applying Part IX of the Act in determining the net tax of the Interprovincial Lottery Corporation and of any provincial gaming authority, where any proceeds from a game of chance conducted by the Corporation are distributed to one or more provincial gaming authorities, the following rules apply:the particular rights to play or participate in that game to which each authority’s share of the proceeds is attributable are deemed to be rights of that authority and not of the Corporation; andin relation to the particular rights,the game is deemed to be conducted by,the related bets are deemed to be made with and accepted by, andthe liability for the payment of any related prizes or winnings is deemed to be that of,that authority and not the Corporation.
SOR/98-440, ss. 6, 7(R).
Expenses incurred by Interprovincial Lottery CorporationWhere the Interprovincial Lottery Corporation incurs expenses in conducting a game of chance and those expenses are not charged to a provincial gaming authority as consideration for a taxable supply but are charged at any time to the authority otherwise than as consideration for a supply or are taken into account in determining the amount of proceeds from the game that are paid, at any time, to the authority, for the purpose of paragraph (a.1) of the description of A1 in subsection 7(7), the imputed tax payable by the authority in respect of those expenses for the reporting period of the authority that includes that time is the amount determined by the formulaA × (B - C)whereAis the rate set out in subsection 165(1) of the Act,Bis the amount of those expenses, andCis the total of all amounts each of which is determined by the formulaC1 × C2whereC1is a particular amount that issalary, wages or other remuneration paid or payable to an employee of the Corporation, other than an amount that the employee is required under section 6 of the Income Tax Act to include in computing the employee’s income for the purposes of that Act,consideration paid or payable by the Corporation for an exempt supply of a service or a zero-rated supply, ora tax, duty or fee prescribed for the purposes of section 154 of the Act, andC2is the extent (expressed as a percentage) to which the particular amount is a cost to the Corporation of conducting the game and is included in the expenses referred to in the description of B.
SOR/98-440, ss. 6, 7(R);
SOR/2011-56, s. 15.
Previous VersionPresumption concerning status as financial institutionFor all purposes relevant to the determination of the net tax of the Interprovincial Lottery Corporation, the Corporation is deemed not to be a financial institution.
SOR/98-440, ss. 6, 7(R).
Provincial Gaming Authority as DistributorSpecial ruleIf a provincial gaming authority, other than the Interprovincial Lottery Corporation, (in this section referred to as the “reporting authority”) is a distributor of another provincial gaming authority in relation to a game of chance conducted by or on behalf of the other authority,in applying subsection 7(7) and sections 8 and 9 of these Regulations and Part IX of the Act in determining the imputed tax payable on gaming expenses and the input tax credits of the reporting authority and of the other authority, any amount paid or payable by the reporting authority on behalf of the other authority in respect of the acquisition or importation, or bringing into a participating province, of property or a service for consumption, use or supply in relation to the conduct of the game is to be taken into account as ifthe game were conducted by the reporting authority as part of the gaming activities of the reporting authority and not of the other authority,the property or service were acquired or imported, or brought into the participating province, and the amount were paid or payable, by the reporting authority on its own account and not by the other authority,the rights to play or participate in the game were rights of the reporting authority and not of the other authority, andpersons, other than the reporting authority, acting as distributors of the other authority in relation to the game were distributors of the reporting authority, and not of the other authority, in relation to the game;no amount that would, but for subsection 188.1(4) of the Act, be consideration for a supply by the reporting authority to the other authority in relation to the game is to be included in the total for C1 in subsection 7(7); andno amount of a reimbursement paid or payable by the other authority to the reporting authority in respect of an expense incurred or to be incurred by the reporting authority that is attributable to the game is to be included in the amount determined for A3 or C1 in subsection 7(7).
SOR/2011-56, s. 16.
Wholly-owned Subsidiary Holding Real PropertyNet tax of wholly-owned subsidiary holding real propertyThe net tax for a reporting period of a corporation that is a wholly-owned subsidiary of a provincial gaming authority and that supplies to the authority, by way of lease, licence or similar arrangement, real property acquired by the authority for use as the authority’s head office is the amount that would be the corporation’s net tax for the period determined under section 225 of the Act if the amount collectible by it as or on account of tax under Division II of Part IX of the Act in respect of each such supply of that real property to the authority were the amount determined in accordance with section 16.
SOR/98-440, ss. 6, 7(R).
Presumption concerning tax on supply of real propertyFor the purposes of this Part and for the purposes of applying Part IX of the Act in determining the net tax of a wholly-owned subsidiary of a provincial gaming authority, where the subsidiary makes a supply to the authority (other than a supply to which section 156 of the Act applies), by way of lease, license or similar arrangement, of real property that the authority acquires for use as the authority’s head office, the tax payable in respect of the supply is deemed to be the tax that would be payable in respect of the supply if the value of the consideration for the supply were the amount determined by the formulaA - BwhereAis the value of the consideration for the supply determined without reference to this section; andBis the total of all amounts each of which is determined by the formulaB1 × B2 × B3whereB1is a particular amount that is property tax payable by the subsidiary in respect of the property or consideration paid or payable by the subsidiary for a zero-rated supply, or an exempt supply of personal property or a service, other than a supply that would be deemed under subsection 188.1(4) of the Act not to be a supply if it were made to the authority instead of the subsidiary,B2is the extent (expressed as a percentage) to which the particular amount is a cost to the subsidiary of making the supply of the real property to the authority, andB3is the extent (expressed as a percentage) to which the authority acquires the real property for use as the authority’s head office.
SOR/98-440, ss. 6, 7(R).
RELATED PROVISIONS
— SOR/2011-56, s. 39For the purposes of Part IX of the Excise Tax Act, if a provincial gaming authority is, or would be in the absence of subsection 261(3) of the Excise Tax Act, entitled to a rebate under subsection 261(1) of the Excise Tax Act of the difference between the amount that was paid by the authority, before the day on which these Regulations are published in the Canada Gazette, as imputed tax payable under subsection 7(7) of the Games of Chance (GST/HST) Regulations on gaming expenses for a reporting period of the authority ending after June 30, 2006 and before January 1, 2008 and the amount of the imputed tax payable by the authority on gaming expenses for that reporting period that is computed under subsection 7(7) of the Games of Chance (GST/HST) Regulations, as amended by subsections 12(11), (17), (19), (22) and (25), the authority may, despite subsection 261(3) of the Excise Tax Act, file an application, on or before the day that is one year after the day on which these Regulations are published in the Canada Gazette, for a rebate under subsection 261(1) of the Excise Tax Act of the portion of that difference that is solely attributable to the enactments under those subsections.
— SOR/2011-56, s. 40For the purposes of Part IX of the Excise Tax Act, if a provincial gaming authority is, or would be in the absence of subsection 261(3) of the Excise Tax Act, entitled to a rebate under subsection 261(1) of the Excise Tax Act of the difference between the amount that was paid by the authority, before the day on which these Regulations are published in the Canada Gazette, as imputed tax payable under subsection 7(7) of the Games of Chance (GST/HST) Regulations on gaming expenses for a reporting period of the authority ending on or after January 1, 2008 and the amount of the imputed tax payable by the authority on gaming expenses for that reporting period that is computed under subsection 7(7) of the Games of Chance (GST/HST) Regulations, as amended by subsections 12(12), (18), (20), (23) and (26), the authority may, despite subsection 261(3) of the Excise Tax Act, file an application, on or before the day that is one year after the day on which these Regulations are published in the Canada Gazette, for a rebate under subsection 261(1) of the Excise Tax Act of the portion of that difference that is solely attributable to the enactments under those subsections.
— SOR/2011-56, s. 45Subsections 10(4), 11(2) and (4), 12(10), (13), (16) and (21) and sections 13, 14 and 16 are deemed to have come into force on December 31, 1990 except that, in respect of any supply made on or before October 3, 2003,the definition period cost in subsection 5(1) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 11(4), is to be read without reference to paragraphs (c) and (d) of that definition;the reference to “tangible personal property or real property” in clause (d)(iii)(A) of the description of A1 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(13), is to be read as a reference to “real property”; andsection 13 does not apply to an input tax credit or an imputed input tax credit that a provincial gaming authority claimed in a return that was filed before October 3, 2003 under Division V of Part IX of the Excise Tax Act.
— SOR/2011-56, s. 46Subsections 11(1) and (5) to (7) apply to any supply made after July 5, 2000.
— SOR/2011-56, s. 50Subsection 12(9) applies to any supply made after October 3, 2003.
— SOR/2011-56, s. 51Subsections 12(11), (17) and (19) apply to any reporting period of a provincial gaming authority that ends on or after July 1, 2006.
— SOR/2011-56, s. 52Subsections 12(12), (18) and (20) apply to any reporting period of a provincial gaming authority that ends on or after January 1, 2008.
— SOR/2011-56, s. 53Subsections 12(14) and (15) apply for the purpose of determining, under subsection 7(7) of the Games of Chance (GST/HST) Regulations, the imputed tax payable by a provincial gaming authority on gaming expenses for any reporting period of the authority that ends after January 1, 1996.
— SOR/2011-56, s. 54Subsection 12(22) applies to the 2006 and 2007 calendar years, except that, in respect of the 2006 calendar year, the references to “10%” and “4%” in the description of E3 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(22), are to be read as references to “10.5%” and “4.5%”, respectively.
— SOR/2011-56, s. 55Subsection 12(23) applies to the 2008 and 2009 calendar years.
— SOR/2011-56, s. 56Subsection 12(24) applies to the 2010 and subsequent calendar years, except that, in respect of the 2010 calendar year,the reference in subclause (i)(A)(I) of the description of E3 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(24), to “the percentage referred to in paragraph 2(a) of the Automobile Operating Expense Benefit (GST/HST) Regulations” is to be read as a reference to “6%” if the last establishment of the authority at which the individual ordinarily worked, or to which the individual ordinarily reported, in the year in relation to the individual’s office or employment with the authority is located in Ontario;the reference in subclause (i)(A)(II) of the description of E3 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(24), to “the percentage referred to in paragraph 2(b) of the Automobile Operating Expense Benefit (GST/HST) Regulations” is to be read as a reference to “10%”; andthe reference in subclause (i)(A)(III) of the description of E3 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(24), to “the percentage referred to in paragraph 2(c) of the Automobile Operating Expense Benefit (GST/HST) Regulations” is to be read as a reference to “4%”.
— SOR/2011-56, s. 57Subsection 12(25) applies to the 2006 and 2007 calendar years, except that, in respect of the 2006 calendar year, the references to “5%” in the description of E4 in subsection 7(7) of the Games of Chance (GST/HST) Regulations, as enacted by subsection 12(25), are to be read as references to “5.5%”.
— SOR/2011-56, s. 58Subsection 12(26) applies to the 2008 and subsequent calendar years.
— SOR/2011-56, s. 59Subsection 15(1) applies for the purpose of determining, under subsection 7(7) of the Games of Chance (GST/HST) Regulations, the imputed tax payable by a provincial gaming authority in respect of expenses incurred by the Interprovincial Lottery Corporation in conducting a game of chance for any reporting period of the authority that ends on or after July 1, 2006.
— SOR/2011-56, s. 60Subsection 15(2) applies for the purpose of determining, under subsection 7(7) of the Games of Chance (GST/HST) Regulations, the imputed tax payable by a provincial gaming authority in respect of expenses incurred by the Interprovincial Lottery Corporation in conducting a game of chance for any reporting period of the authority that ends on or after January 1, 2008.
— SOR/2012-191, s. 51Subsections 3(1) and (3) apply in respect of any reporting period of a provincial gaming authority that begins after February 28, 2014.
— SOR/2012-191, s. 52Subsection 3(2) applies in respect of a reporting period of a provincial gaming authority that includes February 28, 2014.
— SOR/2013-44, s. 41Subsection 1(1) applies to the 2013 calendar year.Subsection 1(2) applies to the 2014 and subsequent calendar years.