Canada Health Transfer, Canada Social Transfer and Wait Times Reduction Transfer Regulations (SOR/2004-62)

Interpretation

1 The following definitions apply in these Regulations.

Act

Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)

population of a province for a fiscal year

population of a province for a fiscal year means the population of a province for a fiscal year as determined in accordance with section 2. (population d’une province pour un exercice)

taxation year

taxation year means a taxation year within the meaning of the Income Tax Act. (année d’imposition)

transfer payment

transfer payment means payment of the Canada Health Transfer, Canada Social Transfer or Wait Times Reduction Transfer under the Act, as the case may be. (paiement de transfert)

Determination of Population of a Province

2 For the purposes of these Regulations and Part V.1 of the Act, the manner in which the Chief Statistician of Canada shall determine the population of a province for a fiscal year is by basing that determination on Statistics Canada’s official estimate of the population of the province on

• (a) June 1 of that fiscal year, for any fiscal year ending before April 1, 2024; or

• (b) July 1 of that fiscal year, for any fiscal year beginning after March 31, 2024.

Calculation of Equalized Tax Transfer

• 3 (1) For the purposes of section 24.7 of the Act, the relevant revenue bases for a province for a fiscal year shall be determined as follows:

  • (a) with respect to personal income taxes, by aggregating

    • (i) 75% of the assessed federal individual income tax applicable to the province for the taxation year ending in the fiscal year, as determined by the Minister of National Revenue, and

    • (ii) 25% of the assessed federal individual income tax applicable to the province for the taxation year beginning in the fiscal year, as determined by the Minister of National Revenue; and

  • (b) with respect to corporation income taxes, by aggregating

    • (i) 75% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that ends in the fiscal year, and

    • (ii) 25% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that begins in the fiscal year.

• (2) to (4) [Repealed, SOR/2009-327, s. 1]

• 3.1 (1) For the purpose of subsection (2), national average rate of tax means, in respect of a revenue source for a fiscal year, the rate equal to the quotient obtained by dividing the aggregate of the federal income tax reduction for the revenue source for the fiscal year for all provinces, excluding the territories, by the revenue base for the revenue source for the fiscal year for all provinces, excluding the territories.

• (2) For the purposes of the calculation under subparagraph 24.7(1.2)(b)(ii) and paragraph 24.7(1.22)(a) of the Act,

  • (a) per capita national yield of the federal income tax reduction for a revenue source for a fiscal year is determined by dividing the product of the national average rate of tax for the revenue source for the fiscal year and the aggregate revenue base of all provinces, excluding the territories, for the revenue source for the fiscal year by the population of all provinces, excluding the territories, for the fiscal year; and

  • (b) per capita yield of the federal income tax reduction, in respect of a province for a revenue source for a fiscal year, is determined by dividing the product of the national average rate of tax for the revenue source for the fiscal year and the province’s revenue base for the revenue source for the fiscal year by the population of the province for the fiscal year.

Interim Estimates

• 4 (1) The Minister

  • (a) shall make an estimate of the amount of the transfer payment related to the Canada Health Transfer and the Canada Social Transfer to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007,

    • (i) before April 16 of that fiscal year,

    • (ii) during the period beginning on September 1 and ending on October 12 of that fiscal year,

    • (iii) during the period beginning on January 12 and ending on the last day of February of that fiscal year,

    • (iv) during the period beginning on September 1 and ending on October 12 of the first fiscal year following the end of that fiscal year,

    • (v) during the period beginning on January 12 and ending on the last day of February of the first fiscal year following the end of that fiscal year,

    • (vi) during the period beginning on September 1 and ending on October 12 of the second fiscal year following the end of that fiscal year, and

    • (vii) during the period beginning on January 12 and ending on the last day of February of the second fiscal year following the end of that fiscal year;

  • (a.1) shall make an estimate of the amount of the transfer payment related to the Canada Health Transfer to a province for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014,

    • (i) during the period beginning on September 1 and ending on December 31 prior to that fiscal year, except for the fiscal year 2007–2008,

    • (i.1) during the period beginning on January 1 and ending on March 31 prior to the fiscal year, for the fiscal year 2007–2008,

    • (ii) during the period beginning on September 1 and ending on October 12 of that fiscal year,

    • (iii) during the period beginning on September 1 and ending on October 12 following the end of that fiscal year, and

    • (iv) during the period beginning on September 1 and ending on October 12 of the second fiscal year following the end of that fiscal year;

  • (a.11) shall make an estimate of the amount of the transfer payment related to the Canada Health Transfer to a province for each fiscal year beginning after March 31, 2014,

    • (i) during the period beginning on September 1 and ending on December 31 prior to that fiscal year, and

    • (ii) during the period beginning on September 1 and ending on October 12 of that fiscal year;

  • (a.2) shall make an estimate of the amount of the transfer payment related to the Canada Social Transfer to a province for each fiscal year beginning after March 31, 2007,

    • (i) during the period beginning on September 1 and ending on December 31 prior to that fiscal year, except for the fiscal year 2007–2008,

    • (i.1) during the period beginning on January 1 and ending on March 31 prior to the fiscal year, for the fiscal year 2007–2008, and

    • (ii) during the period beginning on September 1 and ending on October 12 of that fiscal year;

  • (a.3) shall make an estimate of the amount of the transfer payment related to the Wait Times Reduction Transfer to a province for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014, during the period beginning on September 1 and ending on December 31 prior to that fiscal year;

  • (b) shall, if there is new information available that may have a significant effect on the amount of the transfer payment related to the Canada Health Transfer or Canada Social Transfer to a province, alter an estimate of the amount of the Canada Health Transfer or Canada Social Transfer payment to be made to each province for any of the fiscal years specified in paragraphs (a) to (a.2)

    • (i) during the second quarter of that fiscal year,

    • (ii) during March of that fiscal year, and

    • (iii) during any period beginning on the first day of the final month of a quarter and ending on the twelfth day of the subsequent quarter, other than the periods specified in paragraphs (a) to (a.2), following the end of the fiscal year, until such time as the final computation under subsection 5(2) is completed; and

  • (c) shall, if there is new information available that may have a significant effect on the amount of the transfer payment related to the Wait Times Reduction Transfer to a province, alter an estimate of the amount of the Wait Times Reduction Transfer payment to be made to each province for any of the fiscal years specified in paragraph (a.3) during any period beginning on the first day of the final month of a quarter and ending on the 12th day of the subsequent quarter, until such time as the final computation under subsection 5(2) is completed.

• (1.1) Despite subsection (1), the Minister is not required to make the estimates referred to in subparagraphs (1)(a.1)(iii) and (iv) in respect of the amount of the transfer payment related to the Canada Health Transfer for the fiscal year 2009-2010.

• (2) If an estimate made under any of subparagraphs (1)(a)(i), (a.1)(i) or (i.1), (a.11)(i) or (a.2)(i) or (i.1) or paragraph (a.3) establishes that a transfer payment is to be made to a province for a fiscal year, the Minister shall pay to the province, on account of the final payment for the fiscal year, an amount equal to 1/24 of the amount so estimated on the first and 3rd working days after the 15th calendar day of each month in that fiscal year.

• (3) If an estimate made under any of subparagraphs (1)(a)(ii) or (iii), (a.1)(ii), (a.11)(ii), (a.2)(ii) or (b)(i) or paragraph (c) establishes that the amount payable to the province under the immediately preceding estimate for that fiscal year should be revised, the Minister shall

  • (a) if any amount remains payable to the province, adjust the remaining payments referred to in subsection (2) in respect of that fiscal year in accordance with the new estimate, beginning with the first payment in the month following the month during which that estimate was calculated; and

  • (b) if an overpayment has been made to the province, recover the amount of the overpayment before the end of the fiscal year.

• (4) If an estimate made under any of subparagraphs (1)(a)(iv) to (vii), (a.1)(iii) or (iv) or (b)(iii) establishes that

  • (a) an underpayment has been made to the province, the Minister shall pay the amount of the underpayment to the province within the four months following the month during which the estimate was made; and

  • (b) an overpayment has been made to the province, the Minister shall recover the amount of the overpayment within the four months following the month during which the estimate was made.

• (5) If an estimate made under subparagraph (1)(b)(ii) establishes that the amount payable to the province under the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall

  • (a) if any amount remains payable to the province, pay to the province the amount in the month during which the estimate was made or, if the province so requests, pay the province that amount within the four months following the month during which the estimate was made; and

  • (b) if an overpayment has been made to the province, recover the amount of the overpayment in the month during which the estimate was made or, if the province so requests, recover the amount within the four months following that month.

• (6) If an estimate establishes that an overpayment has been made to a province in respect of a fiscal year, the Minister may, subject to paragraph (3)(b), (4)(b) or (5)(b), recover the amount of the overpayment

  • (a) from any amount payable to the province under the Act; or

  • (b) from the province as a debt due to Her Majesty in right of Canada.

• (7) For the purpose of making an estimate under subsection (1), the population of a province for a fiscal year is the population of that province, as estimated by the Minister on the basis of population statistics made available to the Minister by the Chief Statistician of Canada, on

  • (a) June 1 of that fiscal year, for any fiscal year ending before April 1, 2024; or

  • (b) July 1 of that fiscal year, for any fiscal year beginning after March 31, 2024.

• (8) The requirement set out in paragraph (1)(b) does not apply to any estimate made in respect of the amount of the transfer payment related to the Canada Health Transfer for the fiscal year 2009-2010.