Excise Tax Act
188 (1) Where a commercial activity of a registrant (other than a registrant to whom subsection (5) applies) consists of taking bets or conducting games of chance and, in the course of that activity, the registrant pays an amount of money in a reporting period as a prize or winnings to a bettor or a person playing or participating in the games, for the purpose of determining an input tax credit of the registrant, the registrant shall be deemed to have received in the reporting period a taxable supply of a service for use exclusively in the activity and to have paid, in that period, tax in respect of the supply equal to the tax fraction of the amount of money paid as the prize or winnings.
Marginal note:Prizes in competitive events
(2) Where, in the course of an activity that involves the organization, promotion hosting or other staging of a competitive event, a person gives a prize to a competitor in the event,
(a) the giving of the prize shall be deemed, for the purposes of this Part, not to be a supply;
(b) the prize shall be deemed, for the purposes of this Part, not to be consideration for a supply by the competitor to the person; and
(c) tax payable by the person in respect of any property given as the prize shall not be included in determining any input tax credit of the person for any reporting period.
Marginal note:Contributions by competitors
(3) For the purposes of this Part, where a competitor in a competitive event contributes an amount to the prizes to be given to competitors in the event, the contribution shall be deemed not to be consideration for a supply.
Marginal note:Application of subsection (3)
(4) Subsection (3) does not apply in respect of a contribution that is made as part of a fee or charge paid by a competitor in a competitive event for the right or privilege of participating in the event and that is not separately identified as a contribution to the prizes.
Marginal note:Net tax of prescribed registrant
(5) Where a registrant is a prescribed registrant at any time in a reporting period, the registrant’s net tax for the period shall be determined in a prescribed manner.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1990, c. 45, s. 12
- 1993, c. 27, s. 51
- 1994, c. 9, s. 12(F)
- Date modified: