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filed March 25, 2002 under Retail Sales Tax Act, R.S.O. 1990, c. R.31

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ONTARIO regulation 117/02

made under the

retail sales tax act

Made: March 20, 2002
Filed: March 25, 2002
Printed in The Ontario Gazette: April 13, 2002

Amending Reg. 1012 of R.R.O. 1990

(Definitions by Minister, Exemptions, Forms and Rebates)

1. Regulation 1012 of the Revised Regulations of Ontario, 1990 is amended by adding the following section:

3.1.1 (1) This section sets out the exclusions from the definition of “promotional distribution” in subsection 1 (1) of the Act.

(2) The provision of a cellular telephone to a person (the “recipient”) at less than full fair value is excluded from the application of the definition of “promotional distribution” if all of the following criteria are met:

1. The cellular telephone is provided to the recipient on or after December 18, 1997.

2. Tax is or will be paid on any fair value paid at the time of retail sale.

3. The cellular telephone cannot be used to access services of a person other than the person (the “service provider”) who provided it or caused it to be provided to the recipient at less than full fair value.

4. The services of the service provider that can be accessed by using the cellular telephone include taxable services.

5. The service provider has the reasonable expectation that the revenue he, she or it receives from all taxable services described in paragraph 4 will equal or exceed the sum of,

i. the cost of all taxable services described in paragraph 4, and

ii. the amount by which the full fair value of all of the cellular telephones described in paragraph 3 exceeds the amount, if any, that the recipients pay for them.

James M. Flaherty

Minister of Finance

Dated on March 22, 2002.