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

Regulations are current to 2022-09-22 and last amended on 2019-03-04. Previous Versions

PART 3Net Tax of Prescribed Registrants (continued)

Wholly-owned Subsidiary Holding Real Property

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

 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.

  • SOR/98-440, s. 6

Marginal note:Presumption concerning tax on supply of real property

 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

A - B

where

A
is the value of the consideration for the supply determined without reference to this section; and
B
is the total of all amounts each of which is determined by the formula

B1 × B2 × B3

where

B1
is 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,
B2
is 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, and
B3
is 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, s. 6
 
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