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Marginal note:Net tax attributable to gaming activities

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• Marginal note:Bet received

  (2) Where 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)

  where

  C 

  is 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; and

• (3) Where 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)

  where

  C 

  is 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; and

• Marginal note:Prizes and winnings

  (4) A 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) × C

  where

  C 

  is the amount payable as a prize or winnings.

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• (7) The 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 formula

  A + B + C + D + E

  where

  A 

  is the amount determined by the formula

  A₁ - A₂

  where

  A₁ 

  is the total of all amounts each of which is

  • (a) an 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,

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  • (d) twice the value of all amounts each of which is

    • (i) an 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,

    • (ii) 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,

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    • (iv) 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, or

  A₂ 

  is the total of all amounts each of which is determined by the formula

  A₅ × A₆

  where

  A₆ 

  is 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;

  B 

  is 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 formula

  B₁ - (B₂ + B₃)

  where

  B₂ 

  is the total of all amounts each of which is determined by the formula

  B₄ × B₅

  where

  B₄ 

  is 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, and

  B₅ 

  is the extent (expressed as a percentage) to which the particular amount is

  [...]

  B₃ 

  is the total of all amounts each of which is determined by the formula

  B₆ × B₇

  where

  B₇ 

  is the extent (expressed as a percentage) to which the particular amount is

  [...]

  D 

  is 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) × D₃

  where

  D₁ 

  is the amount by which

  • (a) the 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 and

    • [...]

    • (ii) in any other case, in respect of which it became ascertainable in the particular period whether amounts were payable as prizes or winnings

  [...]

  E 

  is

  • (a) if 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 formula

    E₁ × (100% - E₂) × E₃

    where

    E₁ 

    is an amount (in this paragraph referred to as the “benefit amount”)

    [...]

    E₂ 

    is 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, and

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Marginal note:Definitions

• 5 (1) The definitions in this subsection apply in this Part.

  charitable proceeds from Superstar Bingo

  charitable 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)

  face value

  face 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)

  period cost

  period 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 of

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  • (d) an 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. (coût imputable)

  prize in kind

  prize in kind  means property or a service that is given as a prize or winnings in a game of chance. (prix en nature)

  reimbursement

  reimbursement  means an amount of consideration (as defined in subsection 123(1) of the Act) that

  • (a) is 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; and

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• Exclusion from promotional supply

  (2.1) Despite 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 of

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  • (c) other 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.

• (2.2) For the purpose of the definition promotional supply in subsection (1), if, in making a supply of property or a service, a provincial gaming authority

  • (a) accepts 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”), or

  • (b) applies, 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.

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Marginal note:Restriction on input tax credits, etc.

• 9 (1) 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 service

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  • (c) 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;

• (2) For 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:

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  • (b) 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;

  • (c) 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”;

  • (d) 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; and

  • (e) where 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.

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• (4) An 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 unless

  • [...]

  • (b) where 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,

    [...]

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• Marginal note:Application

  (6) Sections 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.

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Marginal note:Presumption concerning tax on supply of real property

16 For 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 formula

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Marginal note:Special rule

14.1 If 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,

• (a) 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 if

  • (i) the game were conducted by the reporting authority as part of the gaming activities of the reporting authority and not of the other authority,

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  • (iv) persons, 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;

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