4Prescribed factor for purposes of section 17

4 Prescribed factor for purposes of section 17

(1)  For the purposes of the definition of rent in section 17(1) of the Act, turnover is prescribed to be a factor.

(2)  For the purposes of subregulation (1) , turnover includes gross takings, gross receipts, gross income and any similar concept.

(3)  For the purposes of calculating turnover, in relation to a protected lease, for the purposes of section 17(1) of the Act, the following are not to be included:

(a) the amount of losses incurred in the resale or disposal of merchandise reasonably and properly purchased from customers as trade-ins in the usual course of business;

(b) the amount of deposits and instalments that are received on account of lay-bys, hire purchase or credit sales and that are refunded to customers;

(c) the amount of a refund on a transaction when the proceeds of the transaction have been included as part of turnover;

(d) the amount of any service charge, finance charge, or interest charge, payable to any financier in connection with provision of credit to customers (other than commission on credit cards or store cards);

(e) the price of merchandise exchanged between shops of the lessee, if the exchange is made solely for the convenient operation of the business of the lessee and not for the purpose of concluding a sale made at or from the premises to which the lease relates;

(f) the price of merchandise returns to shippers, wholesalers or manufacturers;

(g) the proceeds of sales, of the fixtures and fittings of the lessee in respect of the premises to which the protected lease relates, after their use in the conduct of business at or from those premises;

(h) the amount of discounts allowed to customers in the normal course of business;

(i) the amount of uncollected credit accounts that are written off;

(j) the amount paid or payable as GST by the lessee in respect of the premises to which the protected lease relates;