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

Marginal note:Presumption concerning status as financial institution

14 For 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.

Provincial Gaming Authority as Distributor

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,

  • (ii) 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,

  • (iii) the rights to play or participate in the game were rights of the reporting authority and not of the other authority, and

  • (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;

• (b) 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); and

• (c) no 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).

Wholly-owned Subsidiary Holding Real Property

Marginal note:Net tax of wholly-owned subsidiary holding real property

15 The 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.

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