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Games of Chance (GST/HST) Regulations

Version of section 13 from 2006-03-22 to 2011-03-02:

Marginal note:Expenses incurred by Interprovincial Lottery Corporation

 Where the Interprovincial Lottery Corporation incurs expenses in conducting a game of chance and those expenses are not charged to a provincial gaming authority as consideration for a taxable supply but are charged at any time to the authority otherwise than as consideration for a supply or are taken into account in determining the amount of proceeds from the game that are paid, at any time, to the authority, for the purpose of paragraph (a.1) of the description of A1 in subsection 7(7), the imputed tax payable by the authority in respect of those expenses for the reporting period of the authority that includes that time is the amount determined by the formula

7% × (A - B)


is the amount of those expenses, and
is the total of all amounts each of which is determined by the formula

B1 × B2


is a particular amount that is
  • (a) salary, wages or other remuneration paid or payable to an employee of the Corporation, other than an amount that the employee is required under section 6 of the Income Tax Act to include in computing the employee’s income for the purposes of that Act,

  • (b) consideration paid or payable by the Corporation for an exempt supply of a service or a zero-rated supply, or

  • (c) a tax, duty or fee prescribed for the purposes of section 154 of the Act, and

is the extent (expressed as a percentage) to which the particular amount is a cost to the Corporation of conducting the game and is included in the expenses referred to in the description of A.
  •  SOR/98-440, s. 6

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