Games of Chance (GST/HST) Regulations

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

  • (a) was acquired or imported, or brought into a participating province, by the authority for consumption or use in gaming activities of the authority, in improving capital property used in gaming activities of the authority or in making promotional supplies;

  • (b) was acquired or imported, or brought into a participating province, by the authority for the purpose of making a supply of the property or service that is a promotional supply;

  • (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;

  • (d) is tangible personal property that was acquired or imported, or brought into a participating province, by the authority for the purpose of being incorporated into or forming a constituent or component part of, or being consumed or expended directly in the process of manufacturing, particular tangible personal property (other than food or beverages) that the authority manufactures or engages another person to manufacture for the purpose of making a supply of the particular property that is a promotional supply; or

  • (e) is a service that is the manufacturing for the authority of tangible personal property (other than food or beverages) and that the authority acquires for the purpose of making a supply of the property that is a promotional supply.

• Marginal note:Use of capital property

  (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:

  • (a) subsections 141(1) to (4), 193(2), 199(2) to (4) and 200(2) and (3) of the Act do not apply to the authority;

  • (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.

• Marginal note:Double counting

  (3) An amount shall not be included in determining a total for A in subsection 7(1) or section 8 for a reporting period of a provincial gaming authority to the extent that that amount was included in that total for a preceding reporting period of the authority.

• Marginal note:Restriction

  (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

  • (a) the authority was not entitled to claim the amount in determining the net tax for that preceding period only because the authority did not satisfy the requirements of subsection 169(4) of the Act in respect of the amount before the return for that preceding period was filed; and

  • (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,

    • (i) the authority reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the authority made an error in claiming that amount in determining the net tax of the authority for that preceding period, and

    • (ii) where the authority does not report the error to the Minister at least three months before the end of the period after which an assessment of the net tax of the authority for that preceding period cannot, because of subsection 298(1) of the Act, be made, the authority pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable penalty and interest to the Receiver General.

• Marginal note:Amounts refunded or remitted

  (5) An amount shall not be included in determining a total for B in section 8 for a reporting period of a provincial gaming authority to the extent that, before the end of the period, the amount was rebated, refunded or remitted to the authority under any Act of Parliament.

• Marginal note:Application

  (6) Sections 231 to 236 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.

• Marginal note:Method of determining extent of use, etc.

  (7) The methods used by a person in a fiscal year to determine

  • (a) the extent to which properties or services are acquired or imported or brought into a participating province by the person for consumption or use in particular activities or for a particular purpose, and

  • (b) the extent to which the consumption or use by the person of properties or services is in particular activities or for a particular purpose,

  shall be fair and reasonable and shall be used consistently by the person throughout the year.