Games of Chance (GST/HST) Regulations — 7
Net tax attributable to gaming activities 7 (1) A provincial gaming authority’s net tax attributable to gaming activities for a reporting period of the authority is the amount determined by the formula A - B where A is the total of all amounts that the authority is required under subsection (2) or (3) to add in determining its net tax for the period; and B is the total of all credits of the authority for the period in respect of prizes or winnings determined under subsection (4) or (5) and the authority’s additional credit in respect of gaming activities for the period determined under subsection (6). Bet received (2) Where a person bets an amount with a provincial gaming authority (other than by purchasing an instant win ticket from a distributor of the authority), the authority shall, in determining its net tax attributable to gaming activities for the reporting period in which it becomes ascertainable whether an amount is payable as a prize or winnings in respect of the bet, add the amount determined by the formula (A/B) × (C - D) where A is (a) if the person placed the bet in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, and (b) in any other case, the rate set out in subsection 165(1) of the Act; B is the total of 100% and the percentage determined for A; C is the total amount that is given by the person in respect of the bet, including any amounts payable by the person in respect of the bet as or on account of tax under Part IX of the Act or under an Act of the legislature of a province; and D is the amount of any tax payable under an Act of the legislature of a province by the person in respect of the bet. Supply of instant win ticket (3) Where a provincial gaming authority has delivered or agreed to deliver an instant win ticket to a distributor of the authority and, during a reporting period of the authority, the distributor pays or becomes liable to pay an amount in respect of the ticket to the authority, the authority shall, in determining its net tax attributable to gaming activities for the period, add the amount determined by the formula (A/B) × (C - D) where A is (a) if the instant win ticket was or is to be delivered to the distributor in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, and (b) in any other case, the rate set out in subsection 165(1) of the Act; B is the total of 100% and the percentage determined for A; C is the face value of the ticket, including any amounts payable by the distributor in respect of the ticket as or on account of tax under an Act of the legislature of a province; and D is the amount of any tax payable under an Act of the legislature of a province by the distributor in respect of the ticket. Prizes and winnings (4) A credit of a provincial gaming authority for a reporting period of the authority in respect of an amount of money that the authority becomes liable, during the period, to pay as a prize or winnings in a game of chance conducted by the authority (other than a prize or winnings in respect of a bet made by purchasing an instant win ticket from a distributor of the authority) is the amount determined by the formula (A/B) × C where A is (a) if the bet in respect of which the prize or winnings becomes payable was placed in a participating province, the total of the rate set out in subsection 165(1) of the Act and the tax rate for that province, and (b) in any other case, the rate set out in subsection 165(1) of the Act; B is the total of 100% and the percentage determined for A; and C is the amount payable as a prize or winnings. Prize on instant win ticket (5) A credit of a provincial gaming authority for a reporting period of the authority in respect of a prize or winnings in respect of an instant win ticket of a particular kind that the authority has delivered or agreed to deliver to a distributor of the authority and i