T-0.1 - Act respecting the Québec sales tax

Section 297.7.4 Disposition versions

1997-12-19

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

(1)  at a particular time the distributor makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph 4 of section 297.7.1 to be added in determining the net tax of the distributor;

(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 by reason of the 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 distributor pays to, or credits in favour of, the particular contractor, 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 particular 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 particular contractor, determined without reference to paragraph 1 of section 297.7.1.

1995, c. 63, s. 394; 1997, c. 85, s. 589.

1995-12-15

297.7.4. A distributor of a direct seller may deduct the amount determined under subparagraph 3 in determining the net tax of the distributor for the particular reporting period of the distributor in which the amount is paid to, or credited by the distributor in favour of, an independent sales contractor of the direct seller, other than a distributor, or for any subsequent reporting period ending on or before the day that is four years after the day the particular reporting period ends where

(1)  at a particular time the distributor makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph 4 of section 297.7.1 to be added in determining the net tax of the distributor;

(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 by reason of the 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 distributor pays to, or credits in favour of, the particular contractor, 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 particular 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 particular contractor, determined without reference to paragraph 1 of section 297.7.1.

1995, c. 63, s. 394.