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

Act current to 2017-09-27 and last amended on 2016-06-22. Previous Versions

Marginal note:Payments to province

 If there is a sales tax harmonization agreement with the government of a province, the appropriate minister may pay to the province out of amounts received in a fiscal year under Part IX of the Excise Tax Act

  • (a) amounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; and

  • (b) subject to the regulations, advances in respect of the amounts referred to in paragraph (a).

  • 1997, c. 10, s. 262;
  • 2011, c. 24, s. 187.
Marginal note:Payments to other persons
  •  (1) Subject to subsection (2), where, under a sales tax harmonization agreement, a federal Minister is responsible for the administration and enforcement of an Act of the legislature of a province respecting the refund, rebate or reimbursement to persons of sales taxes paid or payable by the persons, or of amounts paid or payable as or on account of sales taxes, in respect of the supply, bringing into the province or importation of certain property or services, that Minister may pay out of amounts received in a fiscal year under Part IX of the Excise Tax Act to a person an amount on account of any amount that is payable to the person under that Act in accordance with the agreement.

  • Marginal note:Advances from Consolidated Revenue Fund

    (2) Where no amount is held on behalf of a province from which payment under subsection (1) may be made in accordance with a sales tax harmonization agreement with the province, or the amount of the payment exceeds the amount so held, payment under subsection (1) may be made as a recoverable advance out of amounts received in a fiscal year under Part IX of the Excise Tax Act if the repayment of the amount or excess by the government of the province is provided for in the sales tax harmonization agreement.

  • 1997, c. 10, s. 262.
Marginal note:Statutory authority to make payments

 Notwithstanding any other Act, the payments paid under a sales tax harmonization agreement under the authority of section 8.4 or 8.5 may be made without any other or further appropriation or authority.

  • 1997, c. 10, s. 262.
Marginal note:Confirmation of past agreements, etc.
  •  (1) Agreements and arrangements that were entered into by the Minister after March 29, 1996, and that, if section 8.3 had been in force on and after that day, could have been authorized under that section, are, for greater certainty, ratified and confirmed and are deemed to have been entered into under that section and approved by the Governor in Council, and all actions taken and payments made under those agreements and arrangements after that day and before this Act is assented to are ratified and confirmed.

  • Marginal note:Confirmation of past payments

    (2) Payments that were made before the date on which the Keeping Canada’s Economy and Jobs Growing Act was assented to and that could have been authorized under section 8.4, as amended by that Act, if that version of section 8.4 had been in force on the date those payments were made are, for greater certainty, ratified and confirmed and all actions taken in respect of those payments are ratified and confirmed.

  • 1997, c. 10, s. 262;
  • 2011, c. 24, s. 188.

PART IVTransfer Payments with Respect to the Elimination of Provincial Capital Taxes

Marginal note:Definition of capital tax

 In this Part, capital tax means a tax that is imposed on one or more of the following:

  • (a) an element of shareholders’ equity in a corporation such as share capital or retained earnings;

  • (b) a form of long-term indebtedness owed by a corporation; or

  • (c) any other element of capital that the Minister considers appropriate.

It does not include

  • (d) a tax imposed under Part VI.1 of the Taxation Act, R.S.Q., c. I-3;

  • (e) a tax imposed under section 74.1 of the Corporations Tax Act, R.S.O. 1990, c. C-40; or

  • (f) any tax that the Minister does not consider to be sufficiently similar to a tax imposed under Part I.3 or VI of the Income Tax Act.

  • R.S., 1985, c. F-8, s. 9;
  • R.S., 1985, c. 11 (3rd Supp.), s. 6;
  • 1992, c. 10, s. 5;
  • 1994, c. 2, s. 3;
  • 1999, c. 11, s. 4;
  • 2007, c. 29, s. 63, c. 35, s. 139.

 [Repealed, 2007, c. 29, s. 63]

Marginal note:Incentive to eliminate capital taxes
  •  (1) As an incentive for a province to eliminate capital taxes imposed by the province, the province is eligible to receive a payment under this Part if

    • (a) before January 2, 2011, it eliminates a capital tax that is imposed under a law of the province that was in force on March 18, 2007; and

    • (b) any legislation that is required to give effect to the elimination is enacted after March 18, 2007 and before January 2, 2011.

  • Marginal note:Meaning of elimination

    (2) For the purposes of this Part, a capital tax is considered to be eliminated if

    • (a) under the law of the province, the tax ceases before January 2, 2011 to be imposed on all corporations, except that the tax may continue to be imposed on any corporation that is exempt from tax under any of paragraphs 149(1)(d) to (d.4) of the Income Tax Act on all of its taxable income; or

    • (b) in the case where the tax is imposed only on financial institutions, the law under which the tax is imposed is amended, before January 2, 2011, to replace the tax with a new capital tax imposed only on financial institutions that meets the following criteria:

      • (i) no financial institution becomes subject to the new capital tax that was not subject to the replaced tax,

      • (ii) every financial institution on which the new capital tax is imposed must be permitted to reduce the amount of the new capital tax payable by it for a taxation year by the amount of income tax payable by it to the province for the year and, if the amount of income tax so payable exceeds the amount of the new capital tax so payable, the financial institution must be permitted to apply the amount of the excess to reduce capital tax payable by it in other taxation years in a manner satisfactory to the Minister, and

      • (iii) the Minister is satisfied that the total amount of revenue that would be raised by the new capital tax from financial institutions if there were no reduction for income tax payable is intended to be broadly commensurate with the total amount of revenue raised from those financial institutions by the province’s income tax.

  • Marginal note:Separate capital tax

    (3) If a province imposes a capital tax that applies to financial institutions as well as corporations that are not financial institutions, the capital tax is deemed to be two separate capital taxes for the purposes of this Part.

  • R.S., 1985, c. F-8, s. 10;
  • 1999, c. 31, s. 236;
  • 2007, c. 29, s. 63, c. 35, s. 139.
Marginal note:Amount of payment
  •  (1) The amount that a province may be eligible to receive, in respect of a period fixed by the Minister, is equal to 17% of the estimated foregone revenue for that period.

  • Marginal note:Preliminary payment

    (2) A province is eligible to receive a preliminary payment for a period if the province has provided information in accordance with section 12.01 such that the Minister is able to make a preliminary determination of the estimated foregone revenue for that period. The Minister shall try to make a preliminary payment to the province on or before the last day of the period if the Minister receives the information in a timely manner.

  • Marginal note:Final determination

    (3) After finalized information that is consistent with a province’s public accounts becomes available so as to enable the Minister to make a final determination of the amount under subsection (1) in respect of a period, the Minister shall do so and reconcile the final determination with any preliminary payment paid to the province. If the amount of the final determination is greater than the preliminary payment, the Minister shall, without delay, pay the difference to the province. However, if the amount of the final determination is less than the preliminary payment, the difference may be deducted from any amount payable to the province under this Act or be recovered from the province as a debt due to Her Majesty in right of Canada.

  • Marginal note:Program time limit

    (4) For the purposes of determining the amount of a payment under this Part, a period shall not include a day that is before March 19, 2007 or after January 1, 2011.

  • Marginal note:Consolidated Revenue Fund

    (5) The Minister may pay to a province, out of the Consolidated Revenue Fund, any amount that the province is eligible to receive under this Part.

  • R.S., 1985, c. F-8, s. 11;
  • 2007, c. 29, s. 63, c. 35, s. 139.
 
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