Games of Chance (GST/HST) Regulations — 9
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 A 2 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, in making promotional supplies or in making supplies of financial services that relate to gaming activities of the authority; (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. 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. 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