Section 188.1 — Excise Tax Act: Definitions

In this section, distributor of an issuer means a person who as agent of the issuer, supplies rights of the issuer on behalf of the issuer, on the person’s own behalf supplies rights of the issuer, accepts, on behalf of the issuer, a bet on a game of chance conducted by the issuer, or makes a specified gaming machine supply to the issuer; ( distributeur ) gaming machine means a machine by the operation of which by a person, the person plays a game of chance in which the element of chance is provided by means of the machine, but does not include a machine that dispenses a ticket, token or other device evidencing the right to play or participate in, or receive a prize or winnings in, one or more games of chance unless the device is, for each of those games, sufficient evidence, and in the case of a printed device, contains sufficient information, to ascertain whether the holder of the device is entitled to receive a prize or winnings without reference to any other information; ( appareil de jeu ) issuer means a registrant who is a prescribed registrant for the purposes of subsection 188(5); ( émetteur ) right of an issuer means a right to play or participate in a game of chance conducted by the issuer; ( droit ) specified gaming machine supply means a supply in respect of a gaming machine made to an issuer if the supply is of the machine, or a site at which the machine is operated, made by way of lease, licence or similar arrangement, or of a service of repairing or maintaining the machine, performing functions necessary to ensure its proper operation or awarding, paying or delivering prizes won in the games of chance played by its operation, and under the agreement for the supply, all or part of the consideration for the supply is determined as a percentage of the proceeds of the issuer from conducting those games. ( fourniture reliée aux appareils de jeu ) For the purposes of this Part, where an issuer makes a supply of a right of the issuer to a distributor of the issuer, tax shall be deemed not to be payable by the distributor in respect of the supply; and the distributor is not entitled to any rebate under section 261 in respect of the supply. Where a particular distributor of an issuer makes a supply of a right of the issuer, if the recipient of the supply is another distributor of the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor and not to have been received by the other distributor; if the recipient of the supply is the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor;

and if the recipient of the supply is any other person, the supply shall be deemed, for the purposes of this Part, to be a supply made by the issuer and not by the particular distributor, and any tax in respect of the supply that is collected by the particular distributor shall be deemed, for the purposes of this Part, to have been collected by the issuer, and not by the particular distributor. For the purposes of this Part, supplies made to an issuer by a distributor of the issuer of a service in respect of the supply of rights of the issuer, the awarding, payment or delivery of prizes won in games of chance conducted by the issuer, or the maintenance or repair of equipment used by the distributor in the supplying of rights of the issuer, supplies made to an issuer by a distributor of the issuer of a service in respect of the acceptance, on behalf of the issuer, of bets on games of chance conducted by the issuer, including supplies of a service of managing, administering and carrying on the day-to-day operations of the issuer’s gaming activities that are connected with a casino of the issuer, specified gaming machine supplies made to an issuer by a distributor of the issuer, and supplies made by an issuer to a distributor of the issuer of a service in respect of the supply of rights of the issuer, or the awarding, payment or delivery of prizes won in games of chance conducted by the issuer, shall be deemed not to be supplies. For the purposes of this Act, promotional bonuses and prizes given by an issuer to a distributor of the issuer for or in respect of the supply by the distributor of rights of the issuer, and amounts paid to an issuer by a distributor of the issuer for or on account of damages to property of the issuer, shall be deemed not to be consideration for a supply.