T-0.1, r. 2 - Regulation respecting the Québec sales tax

Section 279r2 Disposition versions

2013-07-03

279R2. For the purposes of sections 279R1 to 279R29, the expression:

“casino operating service” means a service of managing, administering and carrying on the day-to-day operations of the gaming authority’s gaming activities that are connected with a casino of the authority;

“consideration”, in respect of a supply of a service, other than a service referred to in section 279R3, made to the gaming authority by a distributor of the authority, does not include a reimbursement;

“distributor” has the meaning assigned by section 350.8 of the Act;

“face value” of a right to play or participate in a game of chance that is evidenced by a ticket, card or other printed device, or face value of such a device, means the amount shown on the device as its price inclusive of tax under Part IX of the Excise Tax Act (R.S.C, 1985, c. E-15) and of tax under Title I of the Act;

“gaming activity” means commercial activity of the gaming authority except to the extent to which the activity involves the making of non-gaming supplies by the authority and includes anything done by the authority in connection with the acquisition, establishment, disposition or termination of the commercial activity;

“gaming authority” means the Société des loteries du Québec;

“imputed input tax refund” means the amount that would be the input tax refund in respect of the property or service for the reporting period of the gaming authority if the amount in respect of the property or service that the authority is required under any of subparagraphs i to iii of subparagraph e of paragraph 1 of the second paragraph of section 279R13 to include in determining the imputed tax payable by the authority for the period were tax that became payable by the authority during the period in respect of that property or service;

“instant win game” means a game of chance the right to play or participate in which is evidenced by a ticket, card or other printed device that contains sufficient information to ascertain, without reference to any other information, whether a holder of the device is entitled to receive a prize or winnings;

“instant win ticket” means a ticket, card or other printed device that is or is evidence of a right to play or participate in an instant win game;

“lease interval”, in respect of a supply by way of lease of property, means the period to which a payment forming part of the consideration for the supply is attributable and that is all or part of the period during which possession or use of the property is provided under the agreement for the supply;

“manufacturing” in respect of property, includes the production, processing or packaging of the property;

“non-gaming activity” means a commercial activity of the gaming authority except to the extent to which the activity is a gaming activity;

“non-gaming reimbursement” means a reimbursement paid or payable by the gaming authority that is in respect of an expense incurred by a distributor of the authority and that is part of the cost to the authority of making non-gaming supplies;

“non-gaming supply” means a supply other than

(1)  a supply of a service of accepting a bet on a game of chance, race or other event or occurrence;

(2)  a supply of a right to play or participate in a game of chance, or a ticket, card or other printed device that is evidence of such a right, made to a distributor of the gaming authority;

(3)  a supply referred to in paragraph 2 of section 350.11 of the Act that, but for that section, would be a supply by the gaming authority to a distributor of the authority;

(4)  a supply of a prize in kind; and

(5)  a promotional supply;

“non-taxable reimbursement” means a reimbursement paid or payable to a distributor of the gaming authority in respect of an expense incurred by the distributor in connection with supplying a casino operating service to the authority, where the expense is

(1)  consideration, other than interest, for a supply made to the distributor, other than a supply that would be deemed under section 350.11 of the Act not to be a supply if it were made to the authority instead of to the distributor, that is

(a)  an exempt supply of movable property or a service;

(b)  a zero-rated supply; or

(c)  a taxable supply all or part of the consideration for which is, by reason of section 68 of the Act, not included in calculating the tax payable in respect of the supply; or

(2)  property tax payable by the distributor;

“period cost” for a particular period, in respect of a supply to the gaming authority of corporeal movable property or an immovable made by way of lease, means the total of

(1)  the total of all amounts each of which is the portion of the capital cost of the corporeal movable property or immovable to the supplier that is reasonably allocated to a lease interval for which a payment forming part of the consideration for the supply becomes due in the particular period or is paid in the particular period without having become due;

(2)  the total of all amounts each of which is an amount, other than an amount referred to in paragraph 1, that is a cost to the supplier that is reasonably attributable to the making of the supply for a lease interval referred to in that paragraph, other than, in the case of a supply to which section 279R29 applies, the portion, if any, of that cost that is deducted from the value of the consideration for the supply in determining, under that section, the amount deemed to be the tax payable in respect of the supply;

(3)  any capital loss on the disposition of the corporeal movable property or immovable by the supplier that is recovered from the authority during the particular period; and

(4)  an amount that, at any time in the particular period, the supplier recognizes in the supplier’s books of account as an unrecoverable loss, being the amount by which the unamortized capital cost of the corporeal movable property or immovable exceeds its fair market value at that time;

“prize in kind” means property or a service that is given as a prize or winnings in a game of chance;

“promotional supply”, by the gaming authority, means

(1)  a supply of property, other than a supply by way of sale of capital property of the authority, made for no consideration or for nominal consideration; or

(2)  a supply by way of sale of the following property or services for consideration that is less than the basic cost to the authority of the property or service:

(a)  a service or incorporeal movable property purchased by the authority;

(b)  corporeal movable property, other than capital property of the authority;

“property tax” means a tax imposed by a municipality or other local authority on an immovable or in respect of the ownership, occupation or use of an immovable;

“reimbursement” means an amount of consideration, within the meaning of section 1 of the Act, that

(1)  is paid or payable by the gaming authority to a distributor of the authority as an allowance or reimbursement in respect of an expense incurred or to be incurred by the distributor otherwise than as a mandatary of the authority; and

(2)  is invoiced or charged to the authority separately from amounts that are not in respect of specific expenses incurred or to be incurred by the distributor;

“right” of the gaming authority has the meaning assigned by section 350.8 of the Act.

O.C. 1470-2002, s. 7; O.C. 701-2013, s. 10.

2012-09-01

279R2. For the purposes of sections 279R1 to 279R29, the expression:

“casino operating service” means a service of managing, administering and carrying on the day-to-day operations of the gaming authority’s gaming activities that are connected with a casino of the authority;

“consideration”, in respect of a supply of a service, other than a service referred to in section 279R3, made to the gaming authority by a distributor of the authority, does not include a reimbursement;

“distributor” has the meaning assigned by section 350.8 of the Act;

“face value” of a right to play or participate in a game of chance that is evidenced by a ticket, card or other printed device, or face value of such a device, means the amount shown on the device as its price inclusive of tax under Part IX of the Excise Tax Act (R.S.C, 1985, c. E-15) and of tax under Title I of the Act;

“gaming activity” means commercial activity of the gaming authority except to the extent to which the activity involves the making of non-gaming supplies by the authority and includes anything done by the authority in connection with the acquisition, establishment, disposition or termination of the commercial activity;

“gaming authority” means the Société des loteries du Québec;

“imputed input tax refund” means the amount that would be the input tax refund in respect of the property or service for the reporting period of the gaming authority if the amount in respect of the property or service that the authority is required under any of subparagraphs i to iii of subparagraph e of paragraph 1 of the second paragraph of section 279R13 to include in determining the imputed tax payable by the authority for the period were tax that became payable by the authority during the period in respect of that property or service;

“instant win game” means a game of chance the right to play or participate in which is evidenced by a ticket, card or other printed device that contains sufficient information to ascertain, without reference to any other information, whether a holder of the device is entitled to receive a prize or winnings;

“instant win ticket” means a ticket, card or other printed device that is or is evidence of a right to play or participate in an instant win game;

“manufacturing” in respect of property, includes the production, processing or packaging of the property;

“non-gaming activity” means a commercial activity of the gaming authority except to the extent to which the activity is a gaming activity;

“non-gaming supply” means a supply other than

(1)  a supply of a service of accepting a bet on a game of chance, race or other event or occurrence;

(2)  a supply of a right to play or participate in a game of chance, or a ticket, card or other printed device that is evidence of such a right, made to a distributor of the gaming authority;

(3)  a supply referred to in paragraph 2 of section 350.11 of the Act that, but for that section, would be a supply by the gaming authority to a distributor of the authority;

(4)  a supply of a prize in kind; and

(5)  a promotional supply;

“non-taxable reimbursement” means a reimbursement paid or payable to a distributor of the gaming authority in respect of an expense incurred by the distributor in connection with supplying a casino operating service to the authority, where the expense is

(1)  consideration, other than interest, for an exempt supply of movable property or a service or a zero-rated supply made to the distributor, other than a supply that would be deemed under section 350.11 of the Act not to be a supply if it were made to the authority instead of the distributor; or

(2)  property tax payable by the distributor;

“prize in kind” means property or a service that is given as a prize or winnings in a game of chance;

“promotional supply” means a supply of property or a service made by the gaming authority for no consideration, for nominal consideration or for consideration that is less than the basic cost to the authority of the property or service;

“property tax” means a tax imposed by a municipality or other local authority on an immovable or in respect of the ownership, occupation or use of an immovable;

“reimbursement” means an amount of consideration that

(1)  is paid or payable by the gaming authority to a distributor of the authority as an allowance or reimbursement in respect of an expense incurred or to be incurred by the distributor otherwise than as a mandatary of the authority; and

(2)  is invoiced or charged to the authority separately from amounts that are not in respect of specific expenses incurred or to be incurred by the distributor;

“right” of the gaming authority has the meaning assigned by section 350.8 of the Act.

O.C. 1470-2002, s. 7.