T-0.1 - Act respecting the Québec sales tax

Section 297.7 Disposition versions

1997-12-19

297.7. A direct seller may deduct the amount determined under subparagraph 3 in determining the net tax for the particular reporting period of 379 the direct seller in which the amount is paid to, or credited by the direct seller in favour of, an independent sales contractor of the direct seller, or for a subsequent reporting period, in a return under Chapter VIII filed by the direct seller within four years after the day on or before which the return under Chapter VIII is required to be filed for the particular reporting period where

(1)  at a particular time the direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph 4 of section 297.2 to be added in determining the net tax of the direct seller;

(2)  the independent sales contractor

(a)  makes a supply of the product that is

i.  a zero-rated supply,

ii.  a supply made outside Québec, or

iii.  a supply in respect of which the recipient is not required to pay tax under a law of Canada or a province,

(b)  makes a supply of the product to a person other than an independent sales contractor of the direct seller for consideration that is less than the suggested retail price of the product at the particular time and more than nominal, and on which was calculated tax that was paid by the person, or

(c)  makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor or that of an individual related thereto; and

(3)  the direct seller pays to, or credits in favour of, an independent sales contractor of the direct seller an amount in respect of the product equal to

(a)  where subparagraph a of subparagraph 2 applies, tax calculated on the suggested retail price of the product at the particular time, and

(b)  where subparagraph b or c of subparagraph 2 applies, the amount determined by the formula

A − B.

For the purposes of this formula,

(1)  A is the tax calculated on the suggested retail price of the product at the particular time; and

(2)  B is

(a)  where subparagraph b of subparagraph 2 of the first paragraph applies, tax calculated on the consideration for the supply of the product by the contractor, and

(b)  where subparagraph c of subparagraph 2 of the first paragraph applies, tax calculated on the consideration for the supply of the product to the contractor, determined without reference to paragraph 1 of section 297.2.

1994, c. 22, s. 519; 1995, c. 63, s. 393; 1997, c. 85, s. 587.

1995-12-15

297.7. A direct seller may deduct the amount determined under subparagraph 3 in determining the net tax of the direct seller for the particular reporting period in which the direct seller pays the amount to, or credits in favour of, an independent sales contractor of the direct seller, or for any subsequent period ending on or before the day that is four years after the day the particular period ends where

(1)  at a particular time the direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph 4 of section 297.2 to be added in determining the net tax of the direct seller;

(2)  the independent sales contractor

(a)  makes a supply of the product that is

i.  a zero-rated supply,

ii.  a supply made outside Québec, or

iii.  a supply in respect of which the recipient is not required to pay tax under a law of Canada or a province,

(b)  makes a supply of the product to a person other than an independent sales contractor of the direct seller for consideration that is less than the suggested retail price of the product at the particular time and more than nominal, and on which was calculated tax that was paid by the person, or

(c)  makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor or that of an individual related thereto; and

(3)  the direct seller pays to, or credits in favour of, an independent sales contractor of the direct seller an amount in respect of the product equal to

(a)  where subparagraph a of subparagraph 2 applies, tax calculated on the suggested retail price of the product at the particular time, and

(b)  where subparagraph b or c of subparagraph 2 applies, the amount determined by the formula

A - B.

For the purposes of this formula,

(1)  A is the tax calculated on the suggested retail price of the product at the particular time; and

(2)  B is

(a)  where subparagraph b of subparagraph 2 of the first paragraph applies, tax calculated on the consideration for the supply of the product by the contractor, and

(b)  where subparagraph c of subparagraph 2 of the first paragraph applies, tax calculated on the consideration for the supply of the product to the contractor, determined without reference to paragraph 1 of section 297.2.

1994, c. 22, s. 519; 1995, c. 63, s. 393.

1994-06-17

297.7. A direct seller may deduct the amount determined under subparagraph 3 in determining the net tax of the direct seller for the particular reporting period in which the direct seller pays the amount to, or credits in favour of, an independent sales contractor of the direct seller, or for any subsequent period ending on or before the day that is four years after the day the particular period ends where

(1)  at a particular time the direct seller made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under section 297.2 to be added in determining the net tax of the direct seller;

(2)  an independent sales contractor of the direct seller

(a)  makes a supply of the product that is

i.  a zero-rated supply,

ii.  a supply made outside Québec, or

iii.  a supply in respect of which the recipient is not required to pay tax under a law of Canada or a province,

(b)  makes a supply of the product to a person other than an independent sales contractor for consideration that is less than the suggested retail price of the product at the particular time and more than nominal, and on which was calculated tax that was paid by the person, or

(c)  makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor or that of an individual related thereto; and

(3)  the direct seller pays to, or credits in favour of, an independent sales contractor of the direct seller an amount in respect of the product equal to

(a)  where subparagraph a of subparagraph 2 applies, the amount collected by the direct seller under section 297.2 in respect of the product, and

(b)  where subparagraph b or c of subparagraph 2 applies, the amount determined by the formula

                        A - B.

For the purposes of this formula,

(1)  A is an amount equal to the amount collected by the direct seller under section 297.2 in respect of the product; and

(2)  B is

(a)  where subparagraph b of subparagraph 2 of the first paragraph applies, an amount equal to the tax paid by the person, and

(b)  where subparagraph c of subparagraph 2 of the first paragraph applies, an amount equal to the tax that would have been payable by the contractor in respect of the acquisition of the product if the supply had been a supply other than a non-taxable supply.

1994, c. 22, s. 519.