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Games of Chance (GST/HST) Regulations (SOR/91-28)

Regulations are current to 2020-12-28 and last amended on 2019-03-04. Previous Versions

Games of Chance (GST/HST) Regulations

SOR/91-28

EXCISE TAX ACT

Registration 1990-12-18

Games of Chance (GST/HST) Regulations

P.C. 1990-2737 1990-12-18

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)Footnote * 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.

 [Repealed, SOR/2011-56, s. 8]

Interpretation

Definition of Act

 In these Regulations, Act means the Excise Tax Act.

  • SOR/2011-56, s. 9

PART 1Prescribed Registrants

[SOR/98-440, s. 3]

 The following persons are prescribed registrants for the purposes of subsection 188(5) of the Act:

  • (a) the Atlantic Lottery Corporation;

  • (b) the British Columbia Lottery Corporation;

  • (c) the Manitoba Liquor and Lotteries Corporation;

  • (d) the Ontario Lottery and Gaming Corporation;

  • (e) la Société des loteries et courses du Québec;

  • (f) the Western Canada Lottery Corporation;

  • (g) the Interprovincial Lottery Corporation;

  • (h) the Alberta Gaming and Liquor Commission;

  • (i) the Saskatchewan Liquor and Gaming Authority;

  • (j) the Saskatchewan Gaming Corporation;

  • (k) the New Brunswick Lotteries and Gaming Corporation;

  • (l) the Nova Scotia Gaming Corporation; and

  • (m) a 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, s. 4
  • SOR/2011-56, s. 10
  • SOR/2014-248, s. 5

PART 2Prescribed Games of Chance

Marginal note:Prescribed games of chance

 A 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, s. 5

PART 3Net Tax of Prescribed Registrants

Interpretation

Marginal note:Definitions

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

    casino operating service

    casino 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 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)

    consideration

    consideration, 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)

    distributor

    distributor has the meaning assigned by subsection 188.1(1) of the Act. (distributeur)

    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)

    gaming activity

    gaming 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 credit

    imputed 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 game

    instant 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 ticket

    instant 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 interval

    lease 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. (période de location)

    manufacturing

    manufacturing, in respect of property, includes the production, processing or packaging of the property. (fabrication)

    non-gaming activity

    non-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 reimbursement

    non-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. (montant de remboursement non lié au jeu)

    non-gaming supply

    non-gaming supply means a supply other than

    • (a) a supply of a service of accepting a bet on a game of chance, race or other event or occurrence;

    • (b) 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;

    • (c) 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;

    • (d) a supply of a prize in kind; and

    • (e) a promotional supply. (fourniture non liée au jeu)

    non-taxable reimbursement

    non-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 is

    • (a) consideration (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 is

      • (i) an exempt supply of personal property or a service,

      • (ii) a zero-rated supply, or

      • (iii) a 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; or

    • (b) property tax payable by the distributor. (montant de remboursement non taxable)

    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

    • (a) the 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;

    • (b) 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;

    • (c) any capital loss on the disposition of the property by the supplier that is recovered from the authority during the particular period; and

    • (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)

    promotional supply

    promotional supply, by a provincial gaming authority, means

    • (a) a 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; or

    • (b) a supply by way of sale of

      • (i) a service, or intangible personal property, that was purchased by the authority, or

      • (ii) tangible 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. (fourniture de promotion)

    property tax

    property 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 authority

    provincial gaming authority means a registrant that is prescribed by section 3, other than paragraph 3(g) or (m). (administration provinciale de jeux et paris)

    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

    • (b) is 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)

    right

    right of a provincial gaming authority has the meaning assigned by subsection 188.1(1) of the Act. (droit)

  • Marginal note:Basic cost

    (2) For the purposes of this Part, the basic cost to a provincial gaming authority of personal property or a service is equal to

    • (a) in 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;

    • (b) 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:

      • (i) tangible personal property incorporated into or forming a constituent or component part of the particular property,

      • (ii) tangible personal property consumed or expended directly in the process of manufacturing the particular property, and

      • (iii) services of manufacturing the particular property in whole or in part;

    • (c) 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; and

    • (d) in 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 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

    • (a) the particular property or service;

    • (b) a service of manufacturing the particular property; or

    • (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.

  • Marginal note:Reduction in consideration

    (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.

  • Marginal note:Exception

    (2.3) Subsection (2.2) does not apply in respect of a supply of property or a service by a provincial gaming authority if

    • (a) subsection 181(2) of the Act applies in respect of the supply;

    • (b) the consideration for the supply is reduced in circumstances in which subsection 232(2) of the Act applies; or

    • (c) the 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.

  • Marginal note:Accepting and making a bet

    (3) For 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, s. 6
  • SOR/2011-56, s. 11
  • SOR/2019-59, s. 7(F)
 
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