Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

Marginal note:Determination of fiscal capacity

• 226 (1) For the purposes of paragraph 225(2)(b), 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 (2), 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 determined in accordance with a representative tax system

  (2) 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 1st, 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 1st, 1982, and

      • (B) deemed by virtue of subsection 4(5) of the Fiscal Arrangements Act as it read on April 1st, 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 (3);

  • (b) defining the expression revenue base, in respect of each distinct source described pursuant to 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 such source for that fiscal year,

    • (i) as that expression is defined in respect of such 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 (3);

  • (c) estimating the amount of each revenue base defined pursuant to paragraph (b), in respect of each source described pursuant to 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 pursuant to 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 pursuant to 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 pursuant to paragraph (d) in respect of all sources described pursuant to paragraph (a).

• Marginal note:Changes and factors to be taken into account in representative tax system

  (3) For the purposes of paragraph (2)(a) and subparagraph (2)(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 pursuant to paragraph (2)(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

  (4) For the purposes of paragraph (2)(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 pursuant to paragraph (2)(c) in respect of that source for all provinces for that fiscal year.