Federal-Provincial Fiscal Arrangements Act (R.S.C. 1970, c. F-6)

Marginal note:Federal revenue abatement

15 The federal revenue abatement relating to post-secondary education applicable to a province for a fiscal year is the amount of the revenue loss sustained by Canada in respect of the fiscal year, by virtue of certain deductions permitted by Part I of the Income Tax Act in computing income taxes payable for a taxation year ending in the fiscal year, calculated as the aggregate of

• (a) the amount, as determined by the Minister, that would be derived from a tax

  • (i) on the incomes (other than incomes from businesses) of individuals resident in the province on the last day of that taxation year, within the meaning of the Income Tax Act,

  • (ii) on the incomes (other than incomes from businesses) earned in the province in that taxation year by individuals not resident in Canada at any time during that taxation year, within the meaning of the Income Tax Act, and

  • (iii) on the incomes from businesses earned in the province in that taxation year by individuals, within the meaning of the Income Tax Act,

  equal to four one-hundredths of the tax otherwise payable, within the meaning of section 33 of the Income Tax Act, on those incomes; and

• (b) the amount, as determined by the Minister, that would be derived from a tax on the income earned in the province by each corporation (other than a non-resident owned investment corporation as defined in the Income Tax Act or a corporation specified in Schedule D to the Financial Administration Act that is an agent of Her Majesty in right of Canada) that maintained a permanent establishment in the province at any time during its taxation year, for the purposes of the Income Tax Act, ending in the calendar year that ends in the fiscal year, at the rate of one per cent of its taxable income earned in the province in that taxation year, such tax to be computed as if imposed under the Income Tax Act and regulations thereunder.