Gambling supplies

(1) In this section“total amounts wagered”, in relation to a tax period, is the sum of– (a) the consideration for all of the gambling supplies made by a taxable person in that tax period; and (b) any amounts recovered by the taxable person during the tax period in respect of an amount written off in the current or a previous tax period, which was included in total monetary prizes under paragraph (d) of the definition of that term; and 38 “total monetary prizes”, in relation to a tax period and in relation to a taxable person, is the sum of the following amounts, whether or not the relevant gambling event, gambling supply, or gambling loss occurred during the tax period– (a) the monetary prizes paid by the person during the tax period because of the outcome of gambling events; (b) any amounts of money paid during the tax period by the person to a recipient of the person’s gambling supplies because of an agreement between them requiring the person to repay a proportion of the recipient’s losses from those supplies; (c) a negative amount, if any, resulting from the calculation under sub-section (3) in the immediately preceding tax period; and (d) an amount the person writes off as a bad debt in relation to all or part of the consideration for a gambling supply made by the person that is due as a debt to the person and has not been received. (2) Notwithstanding section 15(3), the amount of GST payable on gambling supplies made by a taxable person shall be determined on a global basis under this section for each tax period rather than for each gambling supply. (3) There shall be included in the output tax a person who makes gambling supplies an amount calculated according to the following formulaTotal amounts wagered - Total monetary prizes. 39 (4) If the amount calculated under sub-section (3) is a negative amount in any tax period no amount is included in the output tax of the taxable person. (5) Section 34 which deals with bad debts, does not apply in relation to a gambling supply. (6) A payment of a kind referred to in paragraph (b) of the definition of “total monetary prizes” shall not be treated as consideration for a supply or acquisition.