Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act (S.C. 1988, c. 28)

PART VIIICrown Share Adjustment Payments

Interpretation

Marginal note:Definitions

• 246 (1) In this Part,

  average annual cost to the Province of borrowing money

  average annual cost to the Province of borrowing money means the average annual rate of interest, determined in the manner prescribed, that would be incurred by the Province on borrowed money if the money were borrowed during the period of twelve months immediately preceding the date of the determination of the threshold rate of return; (coût d’emprunt annuel moyen)

  deemed profit

  deemed profit[Repealed, 2009, c. 31, s. 47]

  fiscal incentive

  fiscal incentive[Repealed, 2009, c. 31, s. 47]

  former Act

  former Act[Repealed, 2009, c. 31, s. 47]

  offshore revenue threshold

  offshore revenue threshold[Repealed, 2009, c. 31, s. 47]

  project

  project means a work or activity resulting in the production of petroleum in the offshore area that is required to be authorized pursuant to paragraph 142(1)(b). (projet)

  threshold rate of return

  threshold rate of return[Repealed, 2009, c. 31, s. 47]

• (2) [Repealed, 2015, c. 4, s. 105]

Adjustment Payments

Marginal note:Adjustment payment

• 247 (1) Subject to this section, the Federal Minister may, on behalf of Her Majesty in right of Canada, pay an amount to Her Majesty in right of the Province equal to seventy-five per cent of the profit realized on or after April 1, 2010, and determined in the manner prescribed, in respect of a project.

• Marginal note:Restriction

  (2) No payment shall be made pursuant to subsection (1) in respect of a project unless the Provincial Minister demonstrates to the satisfaction of the Federal Minister that the rate of return in respect of that project that would have been obtained on behalf of Her Majesty in right of the Province, calculated in the manner prescribed, is equal to or greater than an annual rate of return on invested capital that is equal to the lesser of 20% and the aggregate of 7% and the average annual cost to the Province of borrowing money.

• Marginal note:Exception

  (2.1) Subsection (2) does not apply in respect of the Sable Offshore Energy Project and the Deep Panuke Offshore Gas Development Project.

• Marginal note:Reduction for fiscal incentives

  (3) The aggregate amount of payments made pursuant to subsection (1) in respect of any project shall be reduced by the aggregate amount, determined in the manner prescribed, of all fiscal incentives and any other benefits that are

  • (a) established by or pursuant to an Act of Parliament;

  • (b) prescribed for the purposes of this Part or approved in the manner prescribed; and

  • (c) received in respect of the project.

• Marginal note:Exception

  (3.1) Subsection (3) does not apply in respect of fiscal incentives and other benefits generally prevailing in Canada.

• Marginal note:Time of payments

  (4) Subject to the regulations, a payment made pursuant to subsection (1) shall be made annually, not later than six months after the end of each fiscal year.

• Marginal note:Exception

  (5) If the per capita fiscal capacity of the Province in respect of any fiscal year is equal to or greater than the national average per capita fiscal capacity in respect of that fiscal year, no payment shall be made under subsection (1) in respect of that fiscal year. The per capita fiscal capacity of the Province and the national average per capita fiscal capacity shall be determined in accordance with section 247.1.

• (6) [Repealed, 2009, c. 31, s. 48]

Marginal note:Definitions

• 247.1 (1) The following definitions apply in this section.

  Fiscal Arrangements Act

  Fiscal Arrangements Act means the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act, 1977. (loi de 1977)

  national average per capita fiscal capacity

  national average per capita fiscal capacity means the per capita fiscal capacity of all of the provinces. (moyenne nationale)

  province

  province does not include Yukon, the Northwest Territories or Nunavut. (province)

• Marginal note:Per capita fiscal capacity of Province and national average

  (2) For the purposes of subsection 247(5), the per capita fiscal capacity of the Province and the national average per capita fiscal capacity in respect of any fiscal year shall be determined by the Minister of Finance by dividing the aggregate of the estimated revenues of the Province or of all provinces, as the case may be, in respect of the fiscal year, as determined in accordance with subsection (3), by the population of the Province or of all provinces, as the case may be, in respect of the fiscal year.

• Marginal note:Estimated revenues

  (3) The aggregate of the estimated revenues of the Province or of all provinces, as the case may be, in respect of any fiscal year shall be determined by

  • (a) describing the sources from which are or may be derived the aggregate of the following revenues, namely:

    • (i) the aggregate of the revenues derived by all provinces in respect of the fiscal year from all sources described in the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act as it read on April 1, 1982,

    • (ii) the aggregate of the revenues that are

      • (A) derived by all municipalities, boards, commissions and other local authorities from the sources described in paragraphs (z) and (bb) of the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act as it read on April 1, 1982, and

      • (B) deemed by virtue of subsection 4(5) of the Fiscal Arrangements Act as it read on April 1, 1982 to be derived by a province in respect of the fiscal year, and

    • (iii) the aggregate of the revenues derived by all provinces in respect of the fiscal year and by all municipalities, boards, commissions and other local authorities in respect of their financial years ending in the fiscal year that

      • (A) are not included in subparagraph (i) or (ii), and

      • (B) are included in the computation of fiscal equalization payments for the fiscal year under the Fiscal Arrangements Act;

    as those sources are described in the definition revenue source in subsection 4(2) of the Fiscal Arrangements Act, varying the description of such sources to take into account the changes and factors referred to in subsection (4);

  • (b) defining the expression revenue base, in respect of each distinct source described in paragraph (a), for a province in respect of the fiscal year, that relates to the measure of the relative capacity of the province to derive revenue from that source for that fiscal year,

    • (i) as that expression is defined in respect of that source, in section 6 of the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1982, and

    • (ii) varying that definition to take into account the changes and factors referred to in subsection (4);

  • (c) estimating the amount of each revenue base defined in paragraph (b), in respect of each source described in paragraph (a), for the Province or all provinces, as the case may be, for the fiscal year;

  • (d) estimating the amount of the revenues of the Province or all provinces, as the case may be, in respect of each source described in paragraph (a) for the fiscal year by multiplying

    • (i) the national average rate of tax for the fiscal year in respect of that source, and

    • (ii) the amount of the revenue base estimated under paragraph (c) in respect of that source for the Province or all provinces, as the case may be, for the fiscal year; and

  • (e) adding the amounts of the revenues of the Province or of all provinces, as the case may be, estimated under paragraph (d) in respect of all sources described in paragraph (a).

• Marginal note:Changes and factors

  (4) For the purposes of paragraph (3)(a) and subparagraph (3)(b)(ii), the following changes and factors should be taken into account, namely,

  • (a) changes in any laws of a province relating to taxation that apply in respect of fiscal years subsequent to the fiscal year beginning on April 1, 1982;

  • (b) changes to improve the accuracy of comparisons among provinces of relative capacity to derive revenue from any source described in paragraph (3)(a);

  • (c) changes made by statistical agencies to statistical data or methods used to measure the relative capacities of provinces to derive revenue from any such source; and

  • (d) any other factors that, in the opinion of the Minister of Finance, are relevant to the circumstances.

• Marginal note:Average rate of tax

  (5) For the purposes of paragraph (3)(d) the national average rate of tax for a fiscal year in respect of a source is the quotient obtained by dividing

  • (a) the aggregate of the total revenues, as determined by the Minister of Finance, derived by all provinces for the fiscal year from that source, whether or not the total revenues or any portion thereof are included in the computation of the fiscal equalization payments to provinces for the fiscal year under Part I of the Fiscal Arrangements Act

  by

  • (b) the revenue base estimated under paragraph (3)(c) in respect of that source for all provinces for that fiscal year.

• Marginal note:Determination of population

  (6) For the purposes of this section, the population of a province for a fiscal year is the population of that province for that fiscal year, as determined for the purposes of Part I of the Fiscal Arrangements Act.

Regulations

Marginal note:Regulations

248 Subject to section 6, the Governor in Council may make regulations, on the recommendation of the Minister,

• (a) respecting, for the purpose of section 247, the information that must be provided to the Federal Minister in order for a profit to be determined in respect of a project;

• (b) respecting the making of payments pursuant to subsection 247(1) if the Minister determines that the Minister has underpaid any amount payable under that subsection;

• (c) respecting the recovery of overpayments made pursuant to subsection 247(1); and

• (d) prescribing anything that is, by this Part, to be prescribed.

Appropriation

Marginal note:Appropriation

249 In respect of any fiscal year, the Federal Minister may pay out of the Consolidated Revenue Fund, at such times and in such manner as may be prescribed, amounts payable during that fiscal year to Her Majesty in right of the Province pursuant to subsection 247(1).

PART IXCorporate Income Tax

250 to 252 [Amendments]

PART XTransitional, Consequential, Repeal and Coming into Force

Transitional

Marginal note:Initial payment to environmental studies fund during transitional period

253 Notwithstanding section 49 of the Canada Oil and Gas Act as it read immediately before the coming into force of this section, where an exploration agreement in relation to any portion of the offshore area was entered into or negotiations in respect thereof were completed under the Canada Oil and Gas Act on or after August 26, 1986, and before the coming into force of Part VII of the Canada Petroleum Resources Act,

• (a) the interest owner shall deposit for payment into the relevant fund an amount determined in accordance with subsection 81(2) of the Canada Petroleum Resources Act; and

• (b) where, prior to the coming into force of this section, there has been deposited for payment into the relevant fund in relation to that exploration agreement an amount determined in accordance with section 49 of the Canada Oil and Gas Act as it read immediately before the coming into force of this section, the Minister may refund to the interest owner an amount equal to the difference between that amount and the amount required to be deposited under paragraph (a).