Federal-Provincial Fiscal Arrangements Act (R.S.C., 1985, c. F-8)

Act current to 2016-01-25 and last amended on 2015-07-30. Previous Versions

Marginal note:Transfer payments for SIFT entity with multiple permanent establishments
  •  (1) Subject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and a permanent establishment outside the province, the amount determined by the formula

    (Z/Y) × (X × W)

    where

    Z 
    is, subject to subsection (2), the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations for the taxation year in respect of the province;
    Y 
    is
    • (a) subject to subsection (2), in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, the amount that would be determined under paragaph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year if the SIFT entity had made that election, and

    • (b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year;

    X 
    is
    • (a) in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, and

    • (b) in any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; and

    W 
    is
    • (a) for a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, and

    • (b) for a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.

  • Marginal note:2007 and 2008 taxation years — permanent establishment in Quebec

    (2) In respect of a taxation year that is after 2006 and before 2009 for which no election was made under subsection 34(4) of the Budget Implementation Act, 2008 by a SIFT entity that has a permanent establishment in the province of Quebec in that taxation year, in calculating the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations in respect of that province, paragraph (a) of the definition general corporate income tax rate in subsection 414(1) is to be read as follows:

    • (a) for Quebec, the highest percentage rate of tax imposed under the laws of Quebec on the taxable income of a public corporation earned in the taxation year in Quebec;

  • 2012, c. 31, s. 97.
Marginal note:Consolidated Revenue Fund

 Payments that the Minister may make under section 12.33 or 12.34 are to be made out of the Consolidated Revenue Fund at any time that the Minister may determine.

  • 2012, c. 31, s. 97.
Marginal note:Information

 A SIFT entity that has not made an election under subsection 34(4) of the Budget Implementation Act, 2008 in respect of a taxation year that is after 2006 and before 2009 must furnish to the Minister of National Revenue any information that that Minister may require for the purpose of determining the amount payable to a province under this Part in respect of taxes payable by the SIFT entity under subsection 122(1) or 197(2) of the Income Tax Act for that taxation year.

  • 2012, c. 31, s. 97.

PART IV.2Transfer Payments — Tax on Payments Under Registered Education Savings Plans Under Part X.5 of the Income Tax Act

Marginal note:Transfer payments — Consolidated Revenue Fund

 Subject to this Act, the Minister may pay to a province, out of the Consolidated Revenue Fund, at such time as the Minister may determine, an amount equal to 40% of the tax payable under Part X.5 of the Income Tax Act for a taxation year by a person who is resident in the province on the last day of that taxation year.

  • 2010, c. 25, s. 145.
Marginal note:Eligibility for payment

 No payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part X.5 of the Income Tax Act.

  • 2010, c. 25, s. 145.

PART IV.3Transfer Payments — Tax on Excess Epsp Amounts Under Part Xi.4 of the Income Tax Act

Marginal note:Transfer payments — Consolidated Revenue Fund

 Subject to this Act, the Minister may, at such time as he or she determines, pay to a province, out of the Consolidated Revenue Fund in respect of tax payable under section 207.8 of the Income Tax Act for a taxation year by a person who is resident in the province at the end of the taxation year, the amount determined by the formula:

A × B

where

A 
is the percentage applicable to the person for the taxation year under the description of B in the formula in subsection 207.8(2) of the Income Tax Act; and
B 
is the amount determined for the person for the taxation year under the description of C in the formula in subsection 207.8(2) of the Income Tax Act.
  • 2012, c. 31, s. 98.
Marginal note:Eligibility for payment

 No payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part XI.4 of the Income Tax Act.

  • 2012, c. 31, s. 98.

PART IV.4Transfer Payments with Respect to Federal Taxes — Necessary Information

Marginal note:Information to be provided

 The Minister of National Revenue shall provide to the Minister in a form and manner, and at a time, satisfactory to the Minister, any information necessary for the administration of Parts IV.01 to IV.3.

  • 2012, c. 31, s. 98.

PART V[Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 [Repealed, 2012, c. 19, s. 391]

 
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