Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
Marginal note:1999, c. 11, s. 2(7); 2004, c. 22, s. 3(1); 2005, c. 7, s. 1(1); 2006, c. 4, ss. 182 to 188
62. Parts I and I.1 of the Act are replaced by the following:
PART IFISCAL EQUALIZATION PAYMENTS
Fiscal Equalization Payments to Provinces
Marginal note:Fiscal equalization payment
3. Subject to the other provisions of this Act, there may be paid to a province a fiscal equalization payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014.
Marginal note:Fiscal year 2007-2008
3.1 The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2007 is equal to,
(a) for Ontario, $0;
(b) for Quebec, $7,160,352,000;
(c) for Nova Scotia, $1,307,982,000;
(d) for New Brunswick, $1,476,523,000;
(e) for Manitoba, $1,825,796,000;
(f) for British Columbia, $0;
(g) for Prince Edward Island, $293,958,000;
(h) for Saskatchewan, $226,146,000;
(i) for Alberta, $0; and
(j) for Newfoundland and Labrador, $477,374,000.
Marginal note:General rule
3.2 (1) Subject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year beginning after March 31, 2008 is the amount, as determined by the Minister, equal to the greater of
(a) the amount determined by the formula
(A + B) × C
where
- A
- is the aggregate of the amounts obtained by subtracting, for each revenue source except the one referred to in paragraph (e) of the definition “revenue source” in subsection 3.5(1), the average annual per capita yield in that province for the revenue source for that fiscal year from the average annual per capita national yield for the revenue source for that fiscal year,
- B
- is 50% of the amount obtained by subtracting, for the revenue source referred to in paragraph (e) of the definition “revenue source” in subsection 3.5(1), the average annual per capita revenue to be equalized for that province for that fiscal year from the average annual per capita national revenue to be equalized for that fiscal year, and
- C
- is the average annual population of that province for that fiscal year, and
(b) the amount determined by the formula
A × C
where
- A
- and C have the same meaning as in paragraph (a).
Marginal note:Province may elect otherwise
(2) Despite subsection (1), a province may elect, at the prescribed time and in the prescribed manner, that the fiscal equalization payment that may be paid to that province for a fiscal year be equal to the amount determined by the formula set out in paragraph (1)(a).
Marginal note:Negative amount
(3) For the purposes of this Part, if the amount of a fiscal equalization payment computed in accordance with subsection (1) or (2) is negative, that amount is considered to be zero.
Marginal note:Transitional payments — British Columbia
3.3 The Minister may pay to British Columbia a transitional fiscal equalization payment, for any fiscal year in the period beginning on April 1, 2008 and ending on March 31, 2010, that is equal to the amount by which
(a) the amount of the fiscal equalization payment that would be computed for that province for that fiscal year in accordance with subsection 3.2(1) — or subsection 3.2(2) if the election described in that subsection is made — if, in computing the amount of that payment, that province’s revenue base in respect of the revenue source referred to in paragraph (d) of the definition “revenue source” in subsection 3.5(1) were determined in the manner set out in the regulations made for the purposes of this section
is greater than
(b) the amount of the fiscal equalization payment that is computed for that province for that fiscal year in accordance with subsection 3.2(1) or subsection 3.2(2), as the case may be.
Marginal note:Maximum fiscal equalization payment
3.4 (1) The fiscal equalization payment that may be paid to a province for a fiscal year shall be reduced if the amount that may be paid to that province for that fiscal year in accordance with section 3.2 — or, in the case of British Columbia, the aggregate of the amounts that may be paid to that province for that fiscal year in accordance with sections 3.2 and 3.3 — would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined by the formula set out in paragraph 3.2(1)(a).
Marginal note:Computation of reduction
(2) The reduction of the fiscal equalization payment with respect to a province under subsection (1) is equal to the amount determined by the formula
(A - B) × C
where
- A
- is the total per capita fiscal capacity of that province in that fiscal year;
- B
- is the per capita fiscal capacity of the province that has the lowest per capita fiscal capacity in that fiscal year and that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined by the formula set out in paragraph 3.2(1)(a); and
- C
- is the average annual population of that province for that fiscal year.
Definition of “per capita fiscal capacity”
(3) For the purposes of this section, “per capita fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula
A + B
where
- A
- and B have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1).
Marginal note:Interpretation
3.5 (1) The following definitions apply in this section and in sections 3 to 3.4.
“average annual per capita national revenue to be equalized”
« revenu national annuel moyen sujet à péréquation par habitant »
“average annual per capita national revenue to be equalized” means, for a fiscal year for a revenue source, the amount determined by the formula
(A/2 + B/4 + C/4) / D
where
- A
- is the national revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;
- B
- is the national revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;
- C
- is the national revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and
- D
- is the aggregate of the average annual population of all provinces for that fiscal year.
“average annual per capita national yield”
« rendement national annuel moyen par habitant »
“average annual per capita national yield” means, for a revenue source for a fiscal year, the amount determined by the formula
(A/2 + B/4 + C/4) / D
where
- A
- is the national yield for that revenue source for the fiscal year that is two years prior to that fiscal year;
- B
- is the national yield for that revenue source for the fiscal year that is three years prior to that fiscal year;
- C
- is the national yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and
- D
- is the aggregate of the average annual population of all provinces for that fiscal year.
“average annual per capita revenue to be equalized”
« revenu annuel moyen sujet à péréquation par habitant »
“average annual per capita revenue to be equalized” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula
(A/2 + B/4 + C/4) / D
where
- A
- is the revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;
- B
- is the revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;
- C
- is the revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and
- D
- is the average annual population of that province for that fiscal year.
“average annual per capita yield”
« rendement annuel moyen par habitant »
“average annual per capita yield” means, in respect of a province for a revenue source for a fiscal year, an amount determined by the formula
(A/2 + B/4 + C/4) / D
where
- A
- is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year;
- B
- is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year;
- C
- is the yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and
- D
- is the average annual population of that province for that fiscal year.
“average annual population”
« population annuelle moyenne »
“average annual population” means, in respect of a province for a fiscal year, the amount determined by the formula
A/2 + B/4 + C/4
where
- A
- is the population of that province for the fiscal year that is two years prior to that fiscal year;
- B
- is the population of that province for the fiscal year that is three years prior to that fiscal year; and
- C
- is the population of that province for the fiscal year that is four years prior to that fiscal year.
“national average rate of tax”
« taux d’imposition national moyen »
“national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces.
“national revenue to be equalized”
« revenu national sujet à péréquation »
“national revenue to be equalized” means, in respect of a revenue source for a fiscal year, the amount equal to the aggregate of the revenue to be equalized for that revenue source for that fiscal year for all provinces.
“national yield”
« rendement national »
“national yield” means, for a revenue source for a fiscal year, the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by the aggregate revenue base of all provinces in respect of that revenue source for that fiscal year.
“revenue base”
« assiette »
“revenue base” means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.
“revenue source”
« source de revenu »
“revenue source” means any of the following sources from which provincial revenues are or may be derived:
(a) revenues relating to personal income;
(b) revenues relating to business income;
(c) revenues relating to consumption;
(d) revenues derived from property taxes and miscellaneous revenues; and
(e) revenues derived from natural resources.
“revenue to be equalized”
« revenu sujet à péréquation »
“revenue to be equalized” means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations.
“total per capita fiscal capacity”
« capacité fiscale totale par habitant »
“total per capita fiscal capacity” means, in respect of a province for a fiscal year, the amount determined by the formula
A + B + [(C + D + E) / F]
where
- A
- is the aggregate of that province’s average annual per capita yield for each revenue source, except the one referred to in paragraph (e) of the definition “revenue source”, for that fiscal year;
- B
- is that province’s average annual per capita revenue to be equalized, for the revenue source referred to in paragraph (e) of the definition “revenue source”, for that fiscal year;
- C
- is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined in accordance with section 3.2 — or, in the case of British Columbia, sections 3.2 and 3.3 — without regard to section 3.4;
- D
- is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under the Canada-Newfoundland Atlantic Accord Implementation Act;
- E
- is, with respect to Nova Scotia or Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year in accordance with sections 7, 8, 10 to 14, 21, 22, and 24 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act; and
- F
- is the average annual population of that province for that fiscal year.
“yield”
« rendement »
“yield” means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base for that revenue source for that fiscal year.
Marginal note:Deduction in computing revenue to be equalized
(2) In computing the revenue to be equalized from the revenue source described in paragraph (a) of the definition “revenue source” in subsection (1) for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.
Marginal note:Municipal property taxes and miscellaneous revenues and taxes
(3) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year, in the case of the part of the revenue source referred to in paragraph (d) of the definition “revenue source” in subsection (1) that consists of local government property taxes and revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year is deemed to be revenue derived by that province from that revenue source for that fiscal year.
Nova Scotia and Newfoundland and Labrador
Marginal note:Computation of fiscal equalization payments
3.6 (1) The fiscal equalization payment that may be paid to Nova Scotia and the fiscal equalization payment that may be paid to Newfoundland and Labrador, for each fiscal year beginning after March 31, 2008, is the amount, as determined by the Minister, equal to the amount determined by the formula
(A - B) × C
where
- A
- is the per capita equalization standard for that fiscal year;
- B
- is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year; and
- C
- is the average annual population of that province for that fiscal year.
Marginal note:Per capita equalization standard
(2) For the purposes of subsection (1), the Minister shall determine the per capita equalization standard for a fiscal year as if, for that fiscal year, the amount of the fiscal equalization payment that may be paid to all provinces were computed in the manner described in that subsection and shall, in making that determination, ensure that
(a) the amount determined by the following formula would be the same with respect to every province that would receive a fiscal equalization payment:
A + (B / C)
where
- A
- is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,
- B
- is the amount of the fiscal equalization payment that would be received by that province for that fiscal year, and
- C
- is the average annual population of that province for that fiscal year; and
(b) the aggregate of the fiscal equalization payments that may be paid to the provinces for that fiscal year would be equal to,
(i) for the fiscal year beginning on April 1, 2005, $10,900,000,000,
(ii) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and
(iii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.
Marginal note:Election for fiscal year 2007-2008
3.7 (1) The Minister of Finance of Nova Scotia or of Newfoundland and Labrador, as the case may be, may elect, for the fiscal year beginning on April 1, 2007, that the fiscal equalization payment that may be paid to that province be equal to $1,464,528,000 for Nova Scotia and $520,510,000 or $732,462,000 for Newfoundland and Labrador, rather than the amount set out under section 3.1. The election must be communicated to the Minister in writing on or before March 1, 2008.
Marginal note:Effect — election by Newfoundland and Labrador
(2) If Newfoundland and Labrador elects to receive, under subsection (1), $520,510,000, that province is considered to have made the election under subsection 3.2(2).
Marginal note:Election for subsequent fiscal years
(3) For any fiscal year beginning after March 31, 2008, Nova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that province be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1).
Marginal note:Effect of election
(4) As soon as a province makes the election under subsection (3), section 3.6 ceases to apply to that province.
Marginal note:Fiscal year 2012-2013 and later
3.8 (1) For a fiscal year beginning after March 31, 2012, the fiscal equalization payment that may be paid to Nova Scotia or Newfoundland and Labrador, as the case may be, shall be determined under sections 3.2 and 3.4 and not subsection 3.6(1) if, for that fiscal year,
(a) in the case of Nova Scotia, the province does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act; and
(b) in the case of Newfoundland and Labrador, the province does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act.
Marginal note:Effect for subsequent fiscal years
(2) As soon as, under subsection (1), the fiscal equalization payment that may be paid for a fiscal year to Nova Scotia or to Newfoundland and Labrador, as the case may be, is to be determined under sections 3.2 and 3.4, section 3.6 ceases to apply to that province.
Marginal note:Interpretation
3.9 (1) The following definitions apply in this section and in sections 3.6 to 3.8.
“average annual per capita yield”
« rendement annual moyen par habitant »
“average annual per capita yield” means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula
(A + B + C) / (D + E + F)
where
- A
- is the yield for that revenue source for the fiscal year that is one year prior to that fiscal year;
- B
- is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year;
- C
- is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year;
- D
- is the population of that province for the fiscal year that is one year prior to that fiscal year;
- E
- is the population of that province for the fiscal year that is two years prior to that fiscal year; and
- F
- is the population of that province for the fiscal year that is three years prior to that fiscal year.
“average annual population”
« population annuelle moyenne »
“average annual population” means, in respect of a province for a fiscal year, the amount determined by the formula
(A + B + C) / 3
where
- A
- is the population of that province for the fiscal year that is one year prior to that fiscal year;
- B
- is the population of that province for the fiscal year that is two years prior to that fiscal year; and
- C
- is the population of that province for the fiscal year that is three years prior to that fiscal year.
“yield”
« rendement »
“yield” means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base in respect of that revenue source for that fiscal year.
Marginal note:Terminology
(2) For the purposes of this section and sections 3.6 to 3.8, the following expressions have the same meaning as in subsection 4(2) of this Act as it read on March 13, 2004:
(a) “national average rate of tax”;
(b) “revenue base”;
(c) “revenue source”; and
(d) “revenue to be equalized”.
Marginal note:Deduction in computing revenue to be equalized
(3) In computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition “revenue source” referred to in subsection (2) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.
Marginal note:Municipal property taxes and miscellaneous revenues and taxes
(4) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources:
(a) in the case of the part of the revenue source referred to in paragraph (z) of the definition “revenue source” referred to in subsection (2) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; and
(b) in the case of the part of the revenue source referred to in paragraph (z.4) of the definition “revenue source” referred to in subsection (2) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year.
Marginal note:Adjustment of revenue to be equalized
(5) Subject to subsection (6), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for that fiscal year.
Marginal note:Election
(6) In order for subsection (5) to apply to Nova Scotia or to Newfoundland and Labrador, in respect of the revenue source referred to in paragraph (z.5) of the definition “revenue source” referred to in subsection (2), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner.
Marginal note:Effect of election under subsection (6)
(7) Despite any provision of the Canada-Newfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (6) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero.
General
Marginal note:Time of calculation
3.91 The fiscal equalization payment that may be paid to a province for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins.
Marginal note:Underpayment
3.92 If the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may pay that province an amount equal to the underpayment.
Marginal note:Overpayment
3.93 If the Minister determines that the Minister has overpaid any amounts paid to a province for a fiscal year under this Part, the Minister may recover the amount of that overpayment from
(a) any amount payable under this Act to that province, in that fiscal year or as soon as possible after the end of that fiscal year; or
(b) that province as a debt due to Her Majesty in right of Canada.
Marginal note:Time and manner of payments
3.94 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate.
Marginal note:Recovery
3.95 If the Minister has made a payment to a province under subsection 4.2(1) of this Act as it read on the day before the day on which this section comes into force, the Minister shall, in the prescribed amounts, reduce the fiscal equalization payments to that province for the fiscal years in the period beginning on April 1, 2007 and ending on March 31, 2016. If, on March 31, 2016, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to that province pursuant to this Act or any other Act of Parliament.
PART I.1TERRITORIAL FINANCING
Interpretation
Marginal note:Definitions
4. (1) The following definitions apply in this Part.
“eligible revenues”
« revenus admissibles »
“eligible revenues” means, in respect of a territory for a fiscal year, the amount equal to the product obtained by multiplying the fiscal capacity of that territory for that fiscal year by 0.70.
“fiscal capacity”
« capacité fiscale »
“fiscal capacity” means, in respect of a territory for a fiscal year, the amount determined by the formula
(A + B + C) / 3 + D
where
- A
- is the aggregate of the yields in that territory for each revenue source for the fiscal year that is two years prior to that fiscal year;
- B
- is the aggregate of the yields in that territory for each revenue source for the fiscal year that is three years prior to that fiscal year;
- C
- is the aggregate of the yields in that territory for each revenue source for the fiscal year that is four years prior to that fiscal year; and
- D
- is the revenue block for that fiscal year.
“gross expenditure base”
« base des dépenses brutes »
“gross expenditure base” means,
(a) for the fiscal year beginning on April 1, 2006, an amount equal to
(i) $593,265,276 in respect of Yukon,
(ii) $922,797,073 in respect of the Northwest Territories, and
(iii) $931,390,618 in respect of Nunavut; and
(b) in respect of a territory, for each subsequent fiscal year, an amount determined by the formula
(A × B) + C
where
- A
- is the amount determined to be the gross expenditure base for that territory for the fiscal year preceding that fiscal year,
- B
- is the population adjusted gross expenditure escalator for that territory for that fiscal year, and
- C
- is the gross expenditure base adjustment determined under paragraph 4.2(a) for that territory for that fiscal year.
“national average rate of tax”
« taux d’imposition national moyen »
“national average rate of tax” means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces and territories by the revenue base in respect of that revenue source for that fiscal year for all provinces and territories.
“population adjusted gross expenditure escalator”
« facteur de majoration des dépenses brutes rajustées en fonction de la population »
“population adjusted gross expenditure escalator” means, in respect of a territory for a fiscal year, a factor equal to the product obtained by multiplying
(a) the population adjustment factor for that territory for the fiscal year that is two years prior to that fiscal year
by
(b) the provincial local government expenditure index for the fiscal year that is two years prior to that fiscal year.
“population adjustment factor”
« facteur de rajustement en fonction de la population »
“population adjustment factor” means, in respect of a territory for a fiscal year, the measure of the population growth of that territory relative to the population growth of Canada and may be defined more particularly by the regulations.
“provincial local government expenditure index”
« indice provincial des dépenses des administrations locales »
“provincial local government expenditure index” means, for a fiscal year, the measure of changes in provincial and territorial government spending on programs and services and may be defined more particularly by the regulations.
“revenue base”
« assiette »
“revenue base” means, in respect of a revenue source for a territory for a fiscal year, the measure of the relative capacity of that territory to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.
“revenue block”
« bloc de revenus »
“revenue block” means,
(a) for the fiscal year beginning on April 1, 2006, an amount equal to
(i) $54,530,841 in respect of Yukon,
(ii) $107,538,446 in respect of the Northwest Territories, and
(iii) $89,338,774 in respect of Nunavut; and
(b) in respect of a territory, for each subsequent fiscal year, the amount equal to the product obtained by multiplying the amount of the revenue block for the previous fiscal year for that territory by 1.02.
“revenue source”
« source de revenu »
“revenue source” means any of the following sources from which territorial revenues are or may be derived:
(a) revenues derived from personal income;
(b) revenues derived from corporate income and government business enterprises;
(c) revenues derived from tobacco;
(d) revenues derived from motive fuel taxes from the sale of gasoline;
(e) revenues derived from motive fuel taxes from the sale of diesel fuel;
(f) revenues derived from the sale of alcoholic beverages; and
(g) revenues derived from payroll taxes.
“revenue to be equalized”
« revenu sujet à péréquation »
“revenue to be equalized”, in respect of a revenue source for a territory for a fiscal year, means the revenue, as determined by the Minister, derived by that territory for that fiscal year from that revenue source and may be defined more particularly by the regulations.
“superannuation adjustment”
« montant de l’indexation des pensions »
“superannuation adjustment” means,
(a) for the fiscal year beginning on April 1, 2006, an amount equal to
(i) $12,471,453 with respect to Yukon,
(ii) $18,340,573 with respect to the Northwest Territories, and
(iii) $11,108,311 with respect to Nunavut; and
(b) in respect of a territory, for each subsequent fiscal year, the amount determined by the Minister of Public Works and Government Services to be equal to, with respect to the fiscal year that is two years prior to that fiscal year, the difference between the amount of the superannuation contribution that is payable by that territory under the Public Service Superannuation Act and the amount that would be payable by that territory under that Act as it read on June 16, 1999.
“yield”
« rendement »
“yield” means, in respect of a territory for a revenue source for a fiscal year, an amount equal to the aggregate of
(a) the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that territory’s revenue base in respect of that revenue source for that fiscal year, and
(b) the yield adjustment determined under paragraph 4.2(b) for that fiscal year.
Marginal note:Determination of gross expenditure base
(2) For the purposes of the definition “gross expenditure base” in subsection (1), the amount determined to be the gross expenditure base in respect of a territory for any preceding fiscal year may be recalculated by the Minister at any time to take into account changes to the prescribed data relating to the population adjusted gross expenditure escalator.
Territorial Formula Financing Payments
Marginal note:Territorial formula financing payments
4.1 (1) Subject to the other provisions of this Act, there may be paid to a territory a territorial formula financing payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014.
Marginal note:Fiscal year 2007-2008
(2) The territorial formula financing payment that may be paid to a territory for the fiscal year beginning on April 1, 2007 is equal to,
(a) for Yukon, $540,095,000;
(b) for the Northwest Territories, $788,350,000; and
(c) for Nunavut, $892,852,000.
Marginal note:Subsequent fiscal years
(3) Subject to the other provisions of this Part, the territorial formula financing payment that may be paid to a territory for a fiscal year beginning after March 31, 2008 is equal to the amount, as determined by the Minister, by which
(a) the aggregate of the gross expenditure base and the superannuation adjustment for that territory for that fiscal year
is greater than
(b) the eligible revenues for that territory for that fiscal year.
General
Marginal note:Powers of the Minister
4.2 The Minister may determine, in respect of a territory for a fiscal year,
(a) the amount of the gross expenditure base adjustment, in order to reflect
(i) a transfer of responsibilities between Canada and the government of a territory or the government of a territory and an aboriginal government,
(ii) the signing of land claims, comprehensive land claims or self-government agreements with aboriginal governments, and
(iii) personal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon; and
(b) the amount of the yield adjustment, in order to reflect
(i) personal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon,
(ii) federal statutory limitations on territo-rial revenue raising capacity, and
(iii) any fiscal capacity adjustments made, in respect of the Northwest Territories, for the fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2006.
Marginal note:Time of calculation
4.3 The territorial formula financing payment payable to a territory for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins.
Marginal note:Underpayment
4.4 If the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may pay that territory an amount equal to the underpayment.
Marginal note:Overpayment
4.5 If the Minister determines that the Minister has overpaid any amounts paid to a territory for a fiscal year under this Part, the Minister may recover the amount of that overpayment from
(a) any amount payable under this Act to that territory, in that fiscal year or as soon as possible after the end of that fiscal year; or
(b) that territory as a debt due to Her Majesty in right of Canada.
Marginal note:Time and manner of payments
4.6 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate.
Marginal note:Recovery — Yukon
4.7 The Minister may recover, from any amount payable under this Part to Yukon, the amount, as determined by the Minister, that is computed under sections 7.5 and 7.7 of the Canada-Yukon Oil and Gas Accord, signed on May 28, 1993, and under section 7.27 of the Yukon Northern Affairs Program Devolution Transfer Agreement, signed on October 29, 2001.
- Date modified: