Section 187 — Excise Tax Act: Bets and games of chance

For the purposes of this Part, where a particular person bets an amount on a game of chance, a race or other event or occurrence, the following rules apply: the person with whom the bet is placed is deemed to have made a supply of a service to the particular person; where the bet is placed in a participating province, that supply is deemed to have been made in that province; and the consideration for that supply is deemed to be equal to the amount determined by the formula (A/B) × (C - D) where A is 100%, B is if that supply is made in a participating province, the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, and in any other case, the total of 100% and the rate set out in subsection 165(1), C is the total amount in respect of the bet that is given by the particular person to the person with whom the bet is placed, including any amount given as or on account of tax imposed on the particular person under an Act of the legislature of a province or under this Part, and D is the amount of any tax imposed under an Act of the legislature of a province on the particular person in respect of the amount that is bet.