Federal-Provincial Fiscal Arrangements Regulations, 1999
SOR/2000-100
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
Registration 2000-03-15
Federal-Provincial Fiscal Arrangements Regulations, 1999
P.C. 2000-317 2000-03-15
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 40Footnote a of the Federal-Provincial Fiscal Arrangements ActFootnote b, hereby makes the annexed Federal-Provincial Fiscal Arrangements Regulations, 1999.
Return to footnote aS.C. 1999, c. 31, s. 93
Return to footnote bS.C. 1995, c. 17, s. 45(1)
Interpretation
1 (1) The definitions in this subsection apply in these Regulations.
- Act
Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)
- federal government sector
federal government sector means a component of the public sector defined as such by Statistics Canada for the purpose of its Financial Management System. (secteur de l’administration fédérale)
- fiscal arrangements period
fiscal arrangements period means the period beginning on April 1, 1999 and ending on March 31, 2005. (période des accords fiscaux)
- health and social services sub-sector
health and social services sub-sector means a component of the provincial government sector defined as such by Statistics Canada for the purpose of its Financial Management System. (sous-secteur des services de santé et des services sociaux)
- local general government sub-sector
local general government sub-sector means a component of the local government sector defined as such by Statistics Canada for the purpose of its Financial Management System. (sous-secteur des administrations locales générales)
- local government sector
local government sector means a component of the public sector defined as such by Statistics Canada for the purpose of its Financial Management System. (secteur des administrations locales)
- micro-simulation model
micro-simulation model means the model maintained by the Department of Finance to simulate the assessment of personal income taxes based on a statistical sample of personal income tax returns. (modèle de microsimulation)
- provincial general government sub-sector
provincial general government sub-sector means a component of the provincial government sector defined as such by Statistics Canada for the purpose of its Financial Management System. (sous-secteur des administrations provinciales générales)
- provincial government sector
provincial government sector means a component of the public sector defined as such by Statistics Canada for the purpose of its Financial Management System. (secteur des administrations provinciales)
- publication
publication means an official printed or electronic release of information. (publication)
- school board sub-sector
school board sub-sector means a component of the local government sector defined as such by Statistics Canada for the purpose of its Financial Management System. (sous-secteur des conseils et des commissions scolaires)
- taxation year
taxation year means a taxation year within the meaning of the Income Tax Act. (année d’imposition)
- university and college sub-sector
university and college sub-sector means a component of the provincial government sector defined as such by Statistics Canada for the purpose of its Financial Management System. (sous-secteur des universités et des collèges)
- working day
working day means a day that is not a Saturday or a holiday. (jour ouvrable)
(2) In these Regulations, a reference to a publication of Statistics Canada by a specific title includes a reference to any other publication of Statistics Canada published in lieu of or in substitution for it.
- 2004, c. 4, s. 8
Application
2 (1) Subject to subsection (2) and section 24, these Regulations apply to payments or contributions that may be made under Parts I, II and IV of the Act for a fiscal year beginning on or after April 1, 1999.
(2) Subparagraphs 8(1)(a)(i) and (b)(i) do not apply to the fiscal year beginning on April 1, 1999.
Population of a Province
3 For the purpose of these Regulations, the population of a province for a fiscal year shall be determined by the Chief Statistician of Canada, on the basis of Statistics Canada’s official estimate of the population of the province on the first day of June of the fiscal year that is set out in the certificate submitted under subsection 9(2).
Gross Domestic Product
4 For the purpose of these Regulations, Canada’s gross domestic product for a calendar year shall be determined by the Chief Statistician of Canada on the basis of Statistics Canada’s official estimate of the gross domestic product of Canada at market prices for the calendar year.
PART 1Fiscal Equalization Payments
Revenue Source
5 (1) For the purpose of the Act, the expressions referred to in paragraphs (a) to (z.5) of the definition revenue source in subsection 4(2) of the Act are defined as follows:
(a) personal income taxes means taxes imposed by a province on the income of individuals
(i) who are resident in the province on the last day of a taxation year, or
(ii) who, if not resident in the province on the last day of a taxation year, have business income earned in the province during the taxation year,
and includes a flat rate levy by the province on the income of individuals resident in the province, but does not include universal pension plan levies on the income of individuals resident in the province;
(b) corporation income taxes, and revenues derived from government business enterprises that are not included in any other paragraph of this definition means
(i) taxes imposed by a province on the income of corporations earned in the province in the taxation year, but does not include taxes or revenues referred to in paragraphs (l) and (v), and
(ii) remittances to a provincial government of profits of the business enterprises of the province, other than
(A) a liquor board, a commission or an authority,
(B) an enterprise engaged entirely or primarily in the marketing of oil or natural gas, and
(C) an enterprise, a board, a commission or an authority that is engaged in the administration of a provincial lottery;
(c) taxes on capital of corporations means revenues derived by a province from
(i) taxes imposed by the province on the paid-up capital of corporations, and
(ii) taxes, levies or fees imposed by the province on the provincially guaranteed debt of business enterprises owned by the province and on all outstanding amounts advanced by the province to those business enterprises;
(d) general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes means
(i) sales taxes and amusement taxes imposed by a province or local government on final purchasers, or on users of goods and services, that are not described elsewhere in this subsection, and, for greater certainty, includes sales taxes on meals, hotel services, telecommunications and cable television, and
(ii) amounts paid to a province in accordance with a sales tax harmonization agreement;
(e) tobacco taxes means a specific tax imposed by a province on final purchasers of tobacco and tobacco products;
(f) motive fuel taxes derived from the sale of gasoline means taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, but does not include taxes referred to in clause (z.4)(i)(F);
(g) motive fuel taxes derived from the sale of diesel fuel means taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, but does not include taxes referred to in clause (z.4)(i)(F);
(h) non-commercial motor vehicle licensing revenues means revenues derived by a province
(i) from fees for drivers’ and chauffeurs’ licences,
(ii) from fees for licences for and registrations of passenger motor vehicles, motorcycles and mopeds, and
(iii) other than from commercial motor vehicle licensing revenues, that are considered to be motor vehicle licensing revenues by Statistics Canada for the purpose of its Financial Management System;
(i) commercial motor vehicle licensing revenues means revenues derived by a province from fees for licences and registrations of commercial motor vehicles, and, for greater certainty, includes
(i) fees for licences for and registrations of trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,
(ii) public service and common carrier fees, and
(iii) revenues derived under reciprocity agreements with other provinces in respect of the licensing of commercial vehicles;
(j) alcoholic beverage revenues means revenues derived by a province from
(i) remittances to the provincial government of profits of the liquor board, commission or authority of the province arising from sales of alcoholic beverages,
(ii) a specific sales tax imposed by the province on the sale of alcoholic beverages by its liquor board, commission or authority, and
(iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages;
(k) hospital and medical care insurance premiums means taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance, but does not include taxes referred to in paragraphs (a), (d) and (y);
(l) forestry revenues means revenues derived by a province from the following separate revenue sources:
(i) forestry revenues from its Crown land that derive from
(A) a specific tax that the province imposes on income from logging on its Crown land, and
(B) royalties, stumpage fees, licences, rentals or fees related to the exploitation of forestry resources on its Crown land, and
(ii) forestry revenues from its private land that derive from
(A) a specific tax imposed by the province on income from logging on that private land, and
(B) royalties, stumpage fees, licences, rentals or fees related to the exploitation of forestry resources on that private land;
(m) conventional new oil revenues means revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that is classified as new oil, other than mined oil revenues and heavy oil revenues, that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, or
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits;
(n) conventional old oil revenues means revenues attributable to oil from naturally occurring hydrocarbon deposits in a province, other than conventional new oil revenues, mined oil revenues, heavy oil revenues, light and medium third tier oil revenues and heavy third tier oil revenues, that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, or
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits;
(o) heavy oil revenues means revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that has a density of 935 kg/m3 or more and is not classified as third tier oil, other than mined oil revenues, that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, or
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits;
(p) mined oil revenues means revenues derived by a province from a levy imposed by the province for the privilege of
(i) mining and carrying out the in-situ production of bitumen that may be used to produce synthetic petroleum, or
(ii) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board;
(q) light and medium third tier oil revenues means revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that is classified as third tier oil, other than mined oil and heavy third tier oil revenues, that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, or
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits;
(r) heavy third tier oil revenues means revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that has a density of 935 kg/m3 or more and is classified as third tier oil, other than mined oil revenues, that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, or
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits;
(s) revenues from domestically sold natural gas and exported natural gas means revenues attributable to gas production attributable to gas from naturally occurring hydrocarbon deposits in a province that the province derived from, among other things,
(i) a levy imposed by the province for the privilege of producing gas or gas by-products from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, or
(iii) remittances to the provincial government of profits of the business enterprises of the province that are engaged entirely or primarily in the marketing of gas or gas by-products produced from naturally occurring hydrocarbon deposits;
(t) sales of Crown leases and reservations on oil and natural gas lands means revenues derived by a province from the disposition of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from naturally occurring hydrocarbon deposits;
(u) oil and gas revenues other than those described in paragraphs (m) to (t) means revenues derived by a province from the exploration for, and the development and production of, oil or gas from naturally occurring hydrocarbon deposits in the province, gas by-products from naturally occurring hydrocarbon deposits in the province and helium or other gaseous products from naturally occurring hydrocarbon deposits in the province, other than revenues of a kind described in paragraphs (m) to (t) of the definition revenue source in subsection 4(2) of the Act, and includes any oil or gas revenues of a kind that falls within the description of a revenue source set out in any of paragraphs (m) to (s) of this subsection but cannot be attributed only to that revenue source;
(v) mining revenues means revenues derived by a province from
(i) a tax imposed by the province that applies to income from the mining of minerals, and
(ii) royalties, licences, rentals or other fees related to the exploration, development or production of minerals;
(w) water power rentals means revenues derived by a province from the right to use, or the use of, water resources;
(x) insurance premium taxes means taxes imposed by a province on insurance premiums of insurance companies;
(y) payroll taxes means taxes imposed by a province on the payroll of employers;
(z) provincial and local government property taxes means
(i) taxes imposed by a province or local government on the owner of real or immovable property or on its occupant, if the owner is exempt from property taxes in relation to that property, and on a person occupying or using real or immovable property for the purpose of carrying on a business if those taxes are computed by reference to the property so occupied or used by that person,
(ii) grants in lieu of a tax described in subparagraph (i) received by a provincial or local government in relation to property that is exempt from taxation, other than property that is owned by Her Majesty in right of the province and occupied by a provincial government department or owned by the local government, and
(iii) taxes imposed by a province or local government on the sale price or value of real or immoveable property on its transfer;
(z.1) race track taxes means taxes imposed by a province on amounts wagered in the province on harness and running horse races;
(z.2) revenues from lottery ticket sales means profits
(i) remitted to a provincial government by a business enterprise, a board, a commission or an authority of the province that conducts and manages games of chance in the province or of a business enterprise, a board, a commission or an authority jointly owned by the province and one or more other provinces that conducts and manages games of chance in the province, if those profits are derived from the operation of games of chance that involve the sale of lottery tickets,
(ii) remitted to a provincial government by a business enterprise, a board, a commission or an authority of another province that conducts and manages games of chance in the province, if those profits are derived from the operation of games of chance that involve the sale of lottery tickets, and
(iii) remitted to a provincial government by a lottery carried on by the Government of Canada;
(z.3) revenues, other than those described in paragraphs (z.1) and (z.2), from games of chance means
(i) profits remitted to a provincial government by a business enterprise, a board, a commission or an authority of the province that conducts and manages games of chance in the province or of a business enterprise, a board, a commission or a authority jointly owned by the province and one or more other provinces that conducts and manages games of chance in the province, if those profits are derived from the operation of games of chance other than those that involve the sale of lottery tickets,
(ii) profits remitted to a provincial government by a business enterprise, a board, a commission or an authority of another province that conducts and manages games of chance in the province, if those profits are derived from the operation of games of chance other than those that involve the sale of lottery tickets,
(iii) revenues derived by a province from a casino win tax or from any other similar direct or indirect tax that is related to the operation or sale of games of chance other than those that involve the sale of lottery tickets, and
(iv) profits remitted to a provincial government that are derived from the sale of food, drink, lodging and parking space, and from the sale of any other goods or services, by a casino owned or controlled by a business enterprise, a board, a commission or an authority of the province or of another province;
(z.4) miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government revenues from sales of goods and services, and miscellaneous local government taxes and revenues means
(i) revenues derived by a province from any source other than a source described elsewhere in this subsection and includes
(A) provincial revenues included by Statistics Canada in the “Sales of Goods and Services” revenue category for the purposes of its Financial Management System, other than revenues described in subparagraph (c)(ii) and revenues derived by the provincial general government sub-sector from sales of goods and services to any other government sub-sector,
(B) revenues derived by a province from natural resources, other than the revenues described in paragraphs (l) to (w) and the portion of the revenues described in paragraph (z.5) that relates to natural resources,
(C) revenues derived from the imposition by a province of interest charges, fines and penalties in relation to taxes and from the imposition by the province of any other interest charges, fines and penalties,
(D) provincial tax revenues that are included by Statistics Canada in the “Other Taxes” revenue category for the purposes of its Financial Management System, including revenues that a province receives for gaming licences or permits that it issues to charities or other organizations, other than those revenues described elsewhere in this subsection,
(E) provincial non-tax revenues included by Statistics Canada in the “Other Revenues from Own Sources” revenue category for the purposes of its Financial Management System, other than those revenues described elsewhere in this subsection, and
(F) other provincial taxes and other provincial non-tax revenues not described elsewhere in this subsection, including taxes on the sale of liquefied petroleum gases,
but does not include
(G) contributions derived from workers’ compensation,
(H) contributions derived from vacation-with-pay,
(I) contributions derived from a universal pension plan,
(J) revenues included by Statistics Canada in the “Investment Income” revenue category for the purposes of its Financial Management System, other than any natural resource royalties or other natural resource revenues described in clause (B) and the interest on taxes described in clause (C),
(K) contributions derived from a public service or teachers’ pension plan that is not constituted as a trust,
(L) general or specific purpose transfer payments received from other governments, and
(ii) local government revenues that are
(A) local government revenues included by Statistics Canada in the “Sales of Goods and Services” revenue category for the purposes of its Financial Management System, other than revenues derived by the local general government sub-sector and the school board sub-sector from sales of goods and services to any other government sub-sector,
(B) revenues derived from the imposition by the local government sector of interest charges, fines and penalties in relation to taxes and from the imposition by the local government sector of any other interest charges, fines and penalties,
(C) local government taxes other than those described in paragraphs (d) and (z), including revenues included by Statistics Canada in the “Other Taxes” revenue category for the purpose of its Financial Management System, in particular including revenues received by a local government for gaming licences or permits that it issues to charities or other organizations, and
(D) local government non-tax revenues included by Statistics Canada in the “Other Revenues from Own Sources” revenue category for the purpose of its Financial Management System, other than the revenues described in clause (B); and
(z.5) revenues of the Government of Canada from any of the sources referred to in this definition that are shared by Canada with the provinces means revenues derived by a province from the following separate revenue sources:
(i) revenue received from the Government of Canada under the Canada-Newfoundland Atlantic Accord Implementation Act,
(ii) revenue received from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, and
(iii) the province’s share of revenue from any revenue source referred to in subsection 4(2) of the Act that is shared by Canada and the province, other than the revenue referred to in subparagraph (i) or (ii) or (z.2)(iii) of these Regulations.
(2) The definitions in this subsection apply in this subsection and in subsection (1).
- classified as new oil
classified as new oil means
(a) in the case of Alberta,
(i) oil from wells that draw from pools discovered on or after April 1, 1974 and before October 1, 1992,
(ii) oil from horizontal wells that draw from pools discovered on or after April 1, 1974, and
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes;
(b) in the case of British Columbia,
(i) oil from wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975 and that is not classified as third tier oil,
(ii) oil from horizontal wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes,
(iv) oil from wells that received the new oil reference price under the National Energy Program, and
(v) oil production from a well abandoned for three consecutive years and for which production resumed on or after January 1, 1981 and that had not been converted to an injection, pressure maintenance or observation well;
(c) in the case of Manitoba,
(i) oil from vertical wells that were drilled and completed on or after April 1, 1974 and before April 1, 1999,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1974,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1987 and before April 1, 1999,
(iv) oil from wells abandoned before April 1, 1974 and re-entered on or after April 1, 1974 and before April 1, 1999, and
(v) incentive oil;
(d) in the case of Saskatchewan,
(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1991,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1974 and before January 1, 1994, and
(iv) oil from wells producing less than 1.6 m3 per day that were drilled and completed before January 1, 1994; and
(e) in the case of all other provinces,
(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994, and
(ii) oil from horizontal wells that were drilled and completed on or after January 1, 1974. (classé comme nouveau pétrole)
- classified as third tier oil
classified as third tier oil means
(a) in the case of Alberta, oil from vertical wells that draw from pools discovered on or after October 1, 1992;
(b) in the case of British Columbia, oil from vertical wells that draw from pools or portions of pools in which no well drillings were completed before June 2, 1998;
(c) in the case of Manitoba,
(i) oil from wells, other than horizontal wells, that were drilled and completed on or after April 1, 1999,
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after April 1, 1999,
(iii) oil from wells, other than horizontal wells, abandoned before April 1, 1999 and re-entered on or after April 1, 1999, and
(iv) oil from wells, other than horizontal wells, that were inactive on April 1, 1999 and re-activated after April 1, 1999;
(d) in the case of Saskatchewan,
(i) oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994, and
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1994; and
(e) in the case of all other provinces, oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994. (classé comme pétrole de troisième niveau)
- Crown land
Crown land, in relation to a province, means land vested in Her Majesty in right of the province. (terres domaniales)
- games of chance other than those that involve the sale of lottery tickets
games of chance other than those that involve the sale of lottery tickets means
(a) games of chance delivered through video lottery terminals;
(b) games of chance delivered through slot machines, including slot machines located at race tracks;
(c) games of chance sold at casinos, including those delivered through video lottery terminals and slot machines; and
(d) bingo. (jeux de hasard autres que ceux comportant la vente de billets de loterie)
- games of chance that involve the sale of lottery tickets
games of chance that involve the sale of lottery tickets means games of chance that involve the sale of any type of lottery ticket, including
(a) conventional on-line and off-line lottery tickets;
(b) instant lottery tickets, including scratch-and-win tickets and break-open tickets; and
(c) sports betting tickets. (jeux de hasard comportant la vente de billets de loterie)
- minerals
minerals means all metallic and non-metallic minerals as classified by Statistics Canada for the purpose of its annual publication General Review of the Mineral Industries. It includes potash and asbestos but does not include
(a) elemental sulphur; or
(b) fuels such as oil, natural gas and natural gas by-products. (minerais)
- private land
private land, in relation to a province, means land other than its Crown land. It includes land in the province that is vested in Her Majesty in right of Canada. (terres privées)
(3) For the purpose of this section, the words gas, hydrocarbon and oil have the same meaning as in the Energy Administration Act.
(4) For greater certainty, the revenue sources and parts of revenue sources described in subsection (1) have, unless defined otherwise in that subsection or in subsection (2), the meaning assigned to the revenue categories or subcategories of the revenue classification scheme used by Statistics Canada for the purposes of its Financial Management System that correspond to them.
(5) For greater certainty, each of the revenue sources described in subsection (1) includes any grant in lieu of taxes, licences, levies and fees that is paid to a province by the Government of Canada in relation to that revenue source and that is not otherwise specifically included in any of the paragraphs of that subsection.
(6) The revenue for a province for a fiscal year from each of the revenue sources described in subsection (1) includes the revenue from those revenue sources of the provincial general government sub-sector, the local general government sub-sector and the school board sub-sector. It does not include the revenue from those revenue sources of the university and college sub-sector and the health and social services sub-sector.
(7) Despite subsection (6), the revenue for a province for a fiscal year from the revenue source described in paragraph (1)(z.4) does not include the revenue from that revenue source of provincial and municipal housing authorities.
(8) In computing the revenue from a revenue source for a province for a fiscal year, the Minister may deduct from the amount set out in the certificate submitted under subsection 9(2)
(a) the amount of any rebate, credit or reduction in relation to that revenue, or its components, that the province, or one of its local governments, grants in favour of a taxpayer for the fiscal year, as determined by Statistics Canada, or the Minister if Statistics Canada does not make the determination, up to a maximum that reduces the amount of the taxpayer’s tax that is included in the revenue source to zero and, for the purpose of this paragraph, if the province or one of its local governments applies a rebate, credit or reduction against the actual or estimated liability of the taxpayer for another tax that it imposes, the amount of that rebate, credit or reduction, up to a maximum that reduces the taxpayer’s liability for that other tax to zero, may be deducted from the amount that would otherwise be determined for the revenue source that includes that other tax;
(b) the amount of any revenue that the province receives from a local government or any revenue that a local government receives from the province, if that amount would otherwise be included twice in the sum of all revenue to be equalized for all sources included in the definition revenue source in subsection 4(2) of the Act; and
(c) the amount of any revenue that the province or a local government in the province paid to itself, if that amount would otherwise be included twice in the aggregate of all revenue to be equalized for all sources included in the definition revenue source in subsection 4(2) of the Act.
(9) In computing the revenue from the revenue source of payroll taxes for a province for a fiscal year, the amount deducted under paragraphs (8)(b) and (c) shall be the amount by which
(a) the product of the payroll tax rate imposed by the province in the fiscal year and the sum of the wages and salaries paid in the province in the calendar year that ends in the fiscal year by the provincial government sector and by the local government sector to their employees in the following industries, as determined by Statistics Canada for the purpose of its System of National Accounts:
(i) provincial administration,
(ii) local administration,
(iii) elementary and secondary education,
(iv) hospital services, and
(v) other institutional health services,
is more than
(b) the amount of any payroll tax paid by the province’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province set out in the certificate submitted under subsection 9(2).
(10) In computing the revenue from the revenue source of taxes on capital of corporations for a province for a fiscal year, the Minister shall deduct from the amount set out in the certificate submitted under subsection 9(2) one half of the amount set out in that certificate for the part of that revenue source described in subparagraph (1)(c)(ii).
(11) In computing the revenue from the revenue source described in paragraph (z.4) of the definition revenue source in subsection 4(2) of the Act for a province for a fiscal year, the Minister shall deduct from the amount set out in the certificate submitted under subsection 9(2) of these Regulations one half of the amount set out in that certificate for the parts of that revenue source described in clauses (1)(z.4)(i)(A) and (ii)(A) of these Regulations.
Revenue Base
6 (1) For the purpose of clause (3)(a)(i)(A), the simulated yield of personal income taxes in the province in a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model, according to the following steps:
(a) aggregate, for each range of taxable income, the amounts of provincial income tax for all individuals in that range in the province, as determined for each individual, that are more than zero
(i) in the case of each province other than the Province of Quebec, by adding surtaxes to and subtracting any rebate, credit or reduction given in relation to provincial personal income taxes from the product of the provincial income tax rates and the federal taxable income for that individual, and
(ii) in the case of the Province of Quebec, by subtracting an amount equal to 16.5% of the current year’s adjusted federal income tax payable for that individual from the product of Quebec’s average tax rate for the range of taxable income and the taxable income of that individual as determined under Quebec’s tax legislation;
(b) aggregate the total amounts for each range of taxable income determined in accordance with paragraph (a) for the 10 provinces;
(c) divide the amounts determined in accordance with paragraph (b) by the aggregate for the 10 provinces of the current year’s adjusted federal income tax payable for all individuals determined for each range of taxable income in accordance with the micro-simulation model;
(d) multiply the amount determined under paragraph (c) by the current year’s adjusted federal income tax payable for all individuals determined for each range of taxable income in the province in accordance with the micro-simulation model; and
(e) aggregate the amounts determined under paragraph (d) for all ranges of taxable income in the province.
(2) For the purpose of subsection (1), the following are the ranges of taxable income for a taxation year:
$ 0 $ 1 — $ 4,999 $ 5,000 — $ 9,999 $ 10,000 — $ 14,999 $ 15,000 — $ 19,999 $ 20,000 — $ 24,999 $ 25,000 — $ 29,999 $ 30,000 — $ 34,999 $ 35,000 — $ 39,999 $ 40,000 — $ 44 999 $ 45,000 — $ 49,999 $ 50,000 — $ 54,999 $ 55,000 — $ 59,999 $ 60,000 — $ 64,999 $ 65,000 — $ 69,999 $ 70,000 — $ 74,999 $ 75,000 — $ 79,999 $ 80,000 — $ 84,999 $ 85,000 — $ 89,999 $ 90,000 — $ 94,999 $ 95,000 — $ 99,999 $100,000 — $124,999 $125,000 — $149,999 $150,000 — $199,999 $200,000 — $249,999 $250,000 and over (3) The expression revenue base for a revenue source for a province for a fiscal year, as defined in subsection 4(2) of the Act, means
(a) in the case of personal income taxes, the aggregate of
(i) a fraction, expressed as a percentage for the province, whose
(A) numerator is the simulated yield of personal income taxes in the province in the taxation year that ends in the fiscal year determined in accordance with subsection (1), and
(B) denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and
(ii) a fraction, expressed as a percentage for the province, whose
(A) numerator is the aggregate, over all individuals in the province, of the federal income tax payable for the taxation year that ends in the fiscal year as determined for each individual, and
(B) denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A),
minus
(iii) a fraction, expressed as a percentage for the province, whose
(A) numerator is the amount referred to in clause (ii)(A), as simulated by the micro-simulation model, and
(B) denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A);
(b) in the case of the revenue source described in paragraph (b) of the definition revenue source in subsection 4(2) of the Act, as defined in paragraph 5(1)(b) of these Regulations, the aggregate of
(i) the product of the portion of the aggregate of corporate profits in Canada, before the payment of income taxes and without any deduction of the aggregate of corporate losses in Canada, that is attributable to any of the 10 provinces for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of National Accounts and a fraction whose
(A) numerator is the allocated corporation taxable income attributable to the province for the fiscal year, and
(B) denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and
(ii) the product, as determined on the basis of data prepared by Statistics Canada for the purpose of its Financial Management System, of
(A) the aggregate, over the 10 provinces, of the total profits that are attributable to the province for the calendar year ending in the fiscal year from business enterprises that have a profit in that calendar year and are owned to the extent of 90% or more by that province, or by that province and one or more other provinces, excluding the profits for that calendar year
(I) of a liquor board, commission or authority,
(II) of an enterprise engaged entirely or primarily in the marketing of oil or natural gas, and
(III) of an enterprise carrying on a provincial lottery, and
(B) a fraction whose numerator is the amount of the total profits referred to in clause (A) for the province as reduced by subtracting from that total any losses that were accumulated in the seven calendar years before that calendar year by a business enterprise referred to in that clause to the extent that those losses are more than the portion that was excluded under this clause for that business enterprise in relation to a previous calendar year and are not more than the total profits for that calendar year of that business enterprise, and whose denominator is the sum of those numerators for each of the 10 provinces;
(c) in the case of taxes on the capital of corporations, the sum of
(i) the total of the taxable paid-up capital employed in the province in a period, referred to in this paragraph as “the corporate fiscal year”, of twelve consecutive months as determined by Statistics Canada and that ends in the fiscal year, of all corporations classified by Statistics Canada as included in the following industries:
(A) agriculture, forestry, fishing and hunting,
(B) oil and gas extraction and coal mining,
(C) mining (other than oil, gas and coal),
(D) utilities,
(E) construction,
(F) manufacturing,
(G) wholesale trade,
(H) retail trade,
(I) transportation and warehousing,
(J) information and culture,
(K) real estate and rental and leasing companies,
(L) professional, scientific and technical services,
(M) administration and support, waste management and remediation services,
(N) education services,
(O) health care and social assistance,
(P) arts, entertainment and recreation,
(Q) accommodation and food services,
(R) other services (except public administration),
(S) non-depository credit intermediation,
(T) other financial intermediation,
(U) deposit credit intermediation,
as determined for each industry by using the formula
((A × C)/At) + ((AA × CC)/AAt)
where
- A
- is the total assets of firms with more than $1,000,000 of total assets, excluding that portion of the agriculture, forestry, fishing and hunting industries that pertains to the agriculture industry, for all firms that are owned less than 90% by Her Majesty allocated to the province for that industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,
- AA
- is the total assets of firms with more than $1,000,000 of total assets, for all firms that are owned 90% or more by Her Majesty in right of the province for each province for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,
- At
- is the total assets for Canada of that industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,
- AAt
- is the total assets for Canada of all industries other than credit unions, caisses populaires or other cooperative credit societies, and the insurance industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,
- CC
- is 32% of the aggregate for all industries of the amount determined for “C”, and
- C
- is
(I) for each industry, excluding the deposit credit intermediation industry and the insurance industry, the amount determined by the formula
(1 - ((D + E + F + G + H) / (R + ((I × (K - J))/K)))) × ((L + M + N + P + Q) + (I × (K - J)/K))
where
- D
- is cash and deposits,
- E
- is investments and accounts with affiliates,
- F
- is portfolio investments, excluding Government of Canada treasury bills,
- G
- is mortgage or hypothecary loans to non-affiliates,
- H
- is non-mortgage or non-hypothecary loans to non-affiliates, excluding loans to individuals, farms, unincorporated businesses, non-profit institutions and local or central credit unions, caisses populaires or other cooperative credit societies,
- I
- is accumulated depreciation,
- J
- is capital cost allowance,
- K
- is book depreciation of the industry for the corporate fiscal year for Canada as classified and determined by the Industrial Organization and Finance Division of Statistics Canada,
- L
- is the amount owing to parents, subsidiaries and affiliates,
- M
- is borrowing by non-affiliates,
- N
- is deferred income tax,
- P
- is other liabilities, including minority interests in consolidated subsidiaries,
- Q
- is total equity, and
- R
- is total assets of the industry for the corporate fiscal year for Canada, as classified and determined by the Industrial Organization and Finance Division of Statistics Canada, and
(II) for the deposit credit intermediation industry, excluding credit unions, caisses populaires or other cooperative credit societies, the product of the total equity employed in the province in that fiscal year by all corporations classified by Statistics Canada as included in that industry and a fraction whose
1. numerator is the aggregate, over the 10 provinces, of the product of the rate of capital tax that applies in the province to financial institutions and a fraction whose numerator is the total equity employed in the province by all corporations classified by Statistics Canada as included in the deposit credit intermediation industry, excluding credit unions, caisses populaires or other cooperative credit societies, and whose denominator is the sum of those numerators for each of the 10 provinces, and
2. denominator is the aggregate, over the 10 provinces, of the product of the rate of capital tax that applies in the province to non-financial institutions and a fraction whose numerator is the total paid-up capital employed in the province by all corporations classified by Statistics Canada, other than corporations classified in the deposit credit intermediation industry, and whose denominator is the sum of those numerators for each of the 10 provinces, and
(ii) the product of
(A) the aggregate of the amount of the outstanding provincially guaranteed debt of electric utilities owned by the province and all outstanding amounts advanced by the province to those electric utilities, as of the end of the taxation year of each electric utility ending in the previous fiscal year, as determined by the Minister based on the public accounts of the province and other relevant information, and
(B) a fraction whose
(I) numerator is the quotient that results from dividing the aggregate, over the 10 provinces, of the revenues derived for the fiscal year from the taxes, levies or fees referred to in subparagraph 5(1)(c)(ii), as determined by the Minister, by the aggregate, over the 10 provinces, of the aggregate amount referred to in clause (A) for that fiscal year, and
(II) denominator is the quotient that results from dividing the aggregate, over the 10 provinces, of the revenues derived for the fiscal year from the taxes referred to in subparagraph 5(1)(c)(i), as determined by the Minister, by the aggregate, over the 10 provinces, of the aggregate amount referred to in subparagraph (i) for the fiscal year;
(d) in the case of general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes, the amount determined for the calendar year ending in the fiscal year by the formula
A + B + C + D + E + F + G + H
where
- A
- is the aggregate, over each personal expenditure category, of the product of, as determined by Statistics Canada, total personal expenditures for that category in the province and the ratio of total personal expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total personal expenditures for that category in Canada,
- B
- is the aggregate, over each housing expenditure category, of the product of, as determined by Statistics Canada, total housing expenditures for that category in the province and the ratio of total housing expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total housing expenditures for that category in Canada,
- C
- is the aggregate, over each business sector industry, of the product of, as determined by Statistics Canada, total capital expenditures for machinery and equipment by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,
- D
- is the aggregate, over each business sector industry, of the product of, as determined by Statistics Canada, total capital expenditures for non-residential construction by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,
- E
- is the aggregate, over each non-business sector industry, of the product of, as determined by Statistics Canada, total capital expenditures for machinery and equipment by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,
- F
- is the aggregate, over each non-business sector industry, of the product of, as determined by Statistics Canada, total capital expenditures for non-residential construction by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,
- G
- is the aggregate, over each non-business sector industry, of the aggregate, over each intermediate input commodity, of the product of, as determined by Statistics Canada, total intermediate input expenditures for that intermediate input commodity by that non-business sector industry in the province and the ratio of the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada, and
- H
- is the aggregate, over each business sector industry, of the aggregate, over each intermediate input commodity, of the product of, as determined by Statistics Canada, total intermediate input expenditures for that intermediate input commodity by that business sector industry in the province and the ratio of the total of those intermediate input expenditures for that intermediate input commodity by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that business sector industry in Canada;
(e) in the case of tobacco taxes, the number of cigarettes sold to final purchasers in the province in the fiscal year as determined by the quotient that results from dividing the revenue derived from tobacco taxes by the province in the fiscal year, as set out in the certificate submitted under subsection 9(2), by the average annual tax levy per cigarette that applies in that province for that fiscal year;
(f) in the case of motive fuel taxes derived from the sale of gasoline, the sum of
(i) the product of the average tax rate in the calendar year that ends in the fiscal year and the adjusted number of litres of gasoline taxed at road-use rate in the province in that year,
(ii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of aviation fuel sold in the province in that year, as determined by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold, and
(iii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of gasoline sold for use by farm trucks in the province in that year;
(g) in the case of motive fuel taxes derived from the sale of diesel fuel, the sum of
(i) the product of the average tax rate in the calendar year that ends in the fiscal year and the adjusted number of litres of diesel fuel taxed at road-use rate in the province in that year,
(ii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of railway fuel sold in the province in that year
(A) as determined by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold, if railway fuel is taxed in the province throughout that year and data on the tax is complete and available, or
(B) as determined by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada, in any other case, and
(iii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of diesel fuel sold for use by farm trucks in the province in that year;
(h) in the case of non-commercial motor vehicle licensing revenues, the sum of the following numbers in the province in the calendar year that ends in the fiscal year, each as determined by Statistics Canada for the purpose of its publication entitled Road Motor Vehicles, Registrations, or by the Minister if Statistics Canada does not make the determination:
(i) the number of passenger automobile registrations,
(ii) four tenths of the number of motorcycle registrations, and
(iii) four tenths of the number of moped registrations, or of mopeds in use if the province does not register mopeds;
(i) in the case of commercial motor vehicle licensing revenues, the aggregate, for the calendar year ending in the fiscal year and the preceding five calendar years, of the quotient for each of those calendar years that results from dividing the value of retail sales of new commercial vehicles in the province for that calendar year, as determined by Statistics Canada for the purpose of its publication entitled New Motor Vehicle Sales, by the Industry Selling Price Index for all trucks for that calendar year, as determined by Statistics Canada for the purpose of its publication entitled Industry Price Indexes;
(j) in the case of alcoholic beverage revenues, the aggregate of
(i) the product of the revenue derived by all provinces from the sale of spirits in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and a fraction whose numerator is the volume of spirits sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces,
(ii) the product of the revenue derived by all provinces from the sale of wine in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and a fraction whose numerator is the volume of wine sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces, and
(iii) the product of the revenue derived by all provinces from the sale of beer in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and a fraction whose numerator is the volume of beer sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces;
(k) in the case of hospital and medical care insurance premiums, the aggregate of
(i) the product of the total revenue derived by the Province of Alberta in the fiscal year from those premiums, as set out in the certificate submitted under subsection 9(2), and the sum of the following weighted numbers, each determined in relation to the taxation year that ended in the previous fiscal year by the Minister through the micro-simulation model:
(A) the weighted number of families in the province identified by a tax return that claims a deduction from tax payable referred to in paragraph 118(1)(a) or (b) of the Income Tax Act, or that might have claimed one of those deductions if the amount determined by the formula mentioned in subparagraph 118(1)(a)(ii) or (b)(iv) of that Act, respectively, for that tax return had been more than zero dollars, other than families that include at least one elderly person identified by a tax return that indicates they are 65 or more years old or that claims the old age exemption, where the weighted number is twice the sum of the following numbers:
(I) the number of those families with an adjusted taxable balance of $12,621 or more,
(II) 80% of the number of those families with an adjusted taxable balance of $11,341 or more but less than $12,621,
(III) 60% of the number of those families with an adjusted taxable balance of $10,061 or more but less than $11,341,
(IV) 40% of the number of those families with an adjusted taxable balance of $8,781 or more but less than $10,061, and
(V) 20% of the number of those families with an adjusted taxable balance of $7,501 or more but less than $8,781,
(B) the weighted number of single individuals in the province, other than those who are included as part of a family described in clause (A) or who are an elderly person as identified in the manner described in that clause, who are called single filers in this clause, where the weighted number is the sum of the following:
(I) the number of single filers with an adjusted taxable balance of $7,561 or more,
(II) 80% of the number of single filers with an adjusted taxable balance of $6,921 or more but less than $7,561,
(III) 60% of the number of single filers with an adjusted taxable balance of $6,281 or more but less than $6,921,
(IV) 40% of the number of single filers with an adjusted taxable balance of $5,641 or more but less than $6,281, and
(V) 20% of the number of single filers with an adjusted taxable balance of $5,001 or more but less than $5,641,
(C) the weighted number of families in the province that are excluded from the families described by clause (A) because they include at least one elderly person, where the weighted number is twice the sum of the following:
(I) the number of those families with an adjusted taxable balance of $32,650 or more, and
(II) 50% of the number of those families with an adjusted taxable balance of $27,211 or more but less than $32,650, and
(D) the weighted number of elderly persons as identified in the manner described in clause (A), other than those who are included as part of a family referred to in clause (C), who are called elderly single filers in this clause, where the weighted number is the sum of the following:
(I) the number of elderly single filers with an adjusted taxable balance of $20,286 or more, and
(II) 50% of the number of elderly single filers with an adjusted taxable balance of $18,106 or more but less than $20,286, and
(ii) the product of the total revenue derived by the Province of British Columbia in the fiscal year from those premiums, as set out in the certificate submitted under subsection 9(2), and the aggregate of the following weighted numbers, each determined in relation to the taxation year that ended in the previous fiscal year by the Minister through the micro-simulation model:
(A) the weighted number of families in the province that consist of two persons identified by a tax return that claims a deduction from tax payable referred to in paragraph 118(1)(a) or (b) of the Income Tax Act, or that might have claimed one of those deductions if the amount determined by the formula mentioned in subparagraph 118(1)(a)(ii) or (b)(iv) of that Act, respectively, for that tax return had been more than zero dollars, where the weighted number is 1.77 times the sum of the following:
(I) the number of those families with an adjusted net family income of more than $19,000,
(II) 80% of the number of those families with an adjusted net family income of more than $17,000 but less than or equal to $19,000,
(III) 60% of the number of those families with an adjusted net family income of more than $15,000 but less than or equal to $17,000,
(IV) 40% of the number of those families with an adjusted net family income of more than $13,000 but less than or equal to $15,000, and
(V) 20% of the number of those families with an adjusted net family income of more than $11,000 but less than or equal to $13,000,
(B) the weighted number of families in the province that consist of three or more persons, identified by tax returns that claim a deduction from tax payable referred to in paragraph 118(1)(a) or (b) of the Income Tax Act, or that might have claimed one of those deductions if the amount determined by the formula mentioned in subparagraph 118(1)(a)(ii) or (b)(iv), respectively, for those tax returns had been more than zero dollars, where the weighted number is twice the sum of the following:
(I) the number of those families with an adjusted net family income of more than $19,000,
(II) 80% of the number of those families with an adjusted net family income of more than $17,000 but less than or equal to $19,000,
(III) 60% of the number of those families with an adjusted net family income of more than $15,000 but less than or equal to $17,000,
(IV) 40% of the number of those families with an adjusted net family income of more than $13,000 but less than or equal to $15,000, and
(V) 20% of the number of those families with an adjusted net family income of more than $11,000 but less than or equal to $13,000, and
(C) the weighted number of single individuals in the province, other than those who are included as part of a family described in clause (A) or (B), who are called single filers in this clause, where the weighted number is the sum of the following:
(I) the number single filers with an adjusted net income of more than $19,000,
(II) 80% of the number of single filers with an adjusted net income of more than $17,000 but less than or equal to $19,000,
(III) 60% of the number of single filers with an adjusted net income of more than $15,000 but less than or equal to $17,000,
(IV) 40% of the number of single filers with an adjusted net income of more than $13,000 but less than or equal to $15,000, and
(V) 20% of the number of single filers with an adjusted net income of more than $11,000 but less than or equal to $13,000;
(l) in the case of forestry revenues,
(i) if the revenues are from the province’s Crown land referred to in subparagraph 5(1)(l)(i), the value of production from logging on that Crown land in the calendar year that ends in the fiscal year, as calculated by the aggregate of the following products, for each of which the net marketable volume is determined by the Canadian Forest Service for the purpose of its publication entitled the Compendium of Canadian Forestry Statistics:
(A) the net marketable volume of hardwood logs and bolts harvested from that Crown land times the regional price of hardwood logs and bolts,
(B) the net marketable volume of softwood logs and bolts harvested from that Crown land times the regional price of softwood logs and bolts,
(C) the net marketable volume of softwood pulpwood harvested from that Crown land times the regional price of softwood pulpwood,
(D) the net marketable volume of hardwood pulpwood harvested from that Crown land times the regional price of hardwood pulpwood,
(E) the net marketable volume of industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), harvested from that Crown land times the regional price of industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), and
(F) the net marketable volume of fuelwood and firewood harvested from that Crown land times the regional price of fuelwood and firewood, and
(ii) if the revenues are from the province’s private land referred to in subparagraph 5(1)(l)(ii), the value of production from logging on that private land in the calendar year that ends in the fiscal year, as calculated by the aggregate of the following products, for each of which the net marketable volume is determined by the Canadian Forest Service for the purpose of its publication entitled the Compendium of Canadian Forestry Statistics:
(A) the net marketable volume of hardwood logs and bolts harvested from that private land times the regional price of hardwood logs and bolts,
(B) the net marketable volume of softwood logs and bolts harvested from that private land times the regional price of softwood logs and bolts,
(C) the net marketable volume of softwood pulpwood harvested from that private land times the regional price of softwood pulpwood,
(D) the net marketable volume of hardwood pulpwood harvested from that private land times the regional price of hardwood pulpwood,
(E) the net marketable volume of industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), harvested from that private land times the regional price of that industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), and
(F) the net marketable volume of fuelwood and firewood harvested from that private land times the regional price of fuelwood and firewood;
(m) in the case of conventional new oil revenues, the product of
(i) the total value of the marketable production of new oil from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as the Minister determines based on relevant data, less the value of the sum of the parts of that marketable production whose value is described in subparagraph (o)(i) and paragraph (p), and
(ii) the adjustment factor for oil mentioned in subsection (10);
(n) in the case of conventional old oil revenues, the product of
(i) the total value of the marketable production of crude oil from naturally occurring hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction, less the value of the parts of that marketable production whose value is described in subparagraphs (m)(i) and (o)(i), paragraph (p) and subparagraphs (q)(i) and (r)(i), and
(ii) the adjustment factor for oil mentioned in subsection (10);
(o) in the case of heavy oil revenues, the product of
(i) the total value of the marketable production of crude oil from naturally occurring hydrocarbon deposits having a density of 935 kg/m3 or greater in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production whose value is described in paragraph (p) and subparagraph (r)(i), and
(ii) the adjustment factor for oil mentioned in subsection (10);
(p) in the case of mined oil revenues, the total value of the marketable production of synthetic petroleum from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction;
(q) in the case of light and medium third tier oil revenues, the product of
(i) the total value of the marketable production of third tier oil from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as the Minister determines based on relevant data, less the value of the sum of the parts of that marketable production whose value is described in paragraph (p) and subparagraph (r)(i), and
(ii) the adjustment factor for oil mentioned in subsection (10);
(r) in the case of heavy third tier oil revenues, the product of
(i) the total value of the marketable production of third tier oil from naturally occurring hydrocarbon deposits having a density of 935 kg/m3 or greater in the province in the calendar year that ends in the fiscal year, as the Minister determines based on relevant data, less the value of the part of that marketable production whose value is described in paragraph (p), and
(ii) the adjustment factor for oil mentioned in subsection (10);
(s) in the case of revenues from domestically sold natural gas and exported natural gas, the product of
(i) the total value of the marketable production of gas and gas by-products from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction, and
(ii) the adjustment factor for natural gas mentioned in subsection (12);
(t) in the case of sales of Crown leases and reservations on oil and natural gas lands,
(i) if the revenue to be equalized from those sales in the province for the fiscal year is more than or equal to the aggregate, over the revenue sources set out in paragraphs (m), (o), (q), (r) and (s) of the definition revenue source in subsection 4(2) of the Act, of the product of the revenue base for that revenue source in the province for the fiscal year and the national average rate of tax for that revenue source for the fiscal year, the revenue to be equalized from those sales in the province for the fiscal year, or
(ii) if the revenue to be equalized from those sales in the province for the fiscal year is less than that aggregate, that aggregate minus the lesser of
(A) the positive difference of that aggregate less that revenue, and
(B) any positive difference of
(I) the aggregate, over the preceding fiscal years beginning on or after April 1, 1987, of the amount by which the revenue to be equalized from those sales in the province for that fiscal year is more than the aggregate referred to in subparagraph (i) would be if it is, for each of those fiscal years, determined as if that subparagraph applied,
less
(II) the aggregate, over all those preceding fiscal years, of the amount described in clause (A) or (B), as the case may be, that is deducted under this subparagraph from the aggregrate referred to in subparagraph (i);
(u) in the case of oil and gas revenues other than those described in paragraphs (m) to (t), the sum of
(i) the total volume of the marketable production of oil, synthetic petroleum and condensate from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction, and
(ii) the product of 0.968 and the total volume of net production withdrawals of gas from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction;
(v) in the case of mining revenues,
(i) the difference that results after subtracting capital asset depreciation costs of the mining and quarrying industry, including depreciation costs related to mine-site, but not general exploration and development expenditures, as determined by Statistics Canada using the straight-line depreciation method on the basis of fixed capital flows and stocks data prepared for the purpose of its Provincial Economic Accounts, from the net profits before taxes of that industry calculated as the sum, for the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of data from its Interprovincial Input-Output Accounts, of
(A) the net income and other operating surpluses of that industry,
(B) royalties on natural resources paid by that industry, and
(C) commodity and other indirect taxes paid, less subsidies received, by that industry,
less,
(ii) if the difference referred to in subparagraph (i) is less than or equal to zero, that difference, and
(iii) if the difference referred to in subparagraph (i) is more than zero, that difference minus the amount that is lesser of
(A) that difference, and
(B) the difference that results after subtracting the aggregate, over the preceding fiscal years in the fiscal arrangements period, beginning with fiscal year 2000-2001, of the amount deducted under this subparagraph as the lesser difference mentioned in clause (A) or this clause, as the case may be, from the absolute value of the aggregate, over those preceding fiscal years, of any negative difference that resulted from the subtraction done under subparagraph (i);
(w) in the case of water power rentals,
(i) for a province other than Quebec or Newfoundland, the number of megawatt hours of electricity generated in the province by electric utilities and industrial establishments from hydro sources in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Electric Power Generation, Transmission and Distribution,
(ii) for the Province of Quebec or the Province of Newfoundland, the product of the sum of the number of megawatt hours of electricity generated in both the Province of Quebec and the Province of Newfoundland by electric utilities and industrial establishments from hydro sources in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Electric Power Generation, Transmission and Distribution, and a fraction whose
(A) numerator is the product of the total revenue from the sale of electricity that is generated from all sources in the province by electric utilities and industrial establishments in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Electric Power Generation, Transmission and Distribution, and another fraction whose numerator is the number that subparagraph (i) would describe for the province if that subparagraph applied to the province and whose denominator is the number of megawatt hours of electricity generated from all sources in the province by electric utilities and industrial establishments in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Electric Power Generation, Transmission and Distribution, and
(B) denominator is the sum of the numerators described in clause (A) for the Province of Quebec and Province of Newfoundland;
(x) in the case of insurance premium taxes, the sum, as the Minister determines based on information provided by the Office of the Superintendent of Financial Institutions and the provinces on the values mentioned in subparagraph (i) and in clause (ii)(A), for the province in the calendar year that ends in the fiscal year in relation to federally registered corporations and provincially licensed corporations, including a provincial government enterprise that carries on the business of insurance, of
(i) the amount by which the value of direct premiums written for property insurance is more than the value of direct premiums written for property marine insurance, and
(ii) the product of
(A) the amount by which the value of life, accident and sickness insurance premiums is more than the total value of dividends paid to policyholders under life insurance contracts, and
(B) a fraction whose
(I) numerator is the aggregate, over the 10 provinces, of the product of the provincial rate of the insurance premium tax that applies to life, accident and sickness insurance and another fraction whose numerator is the amount, for the province, referred to in clause (A) and whose denominator is the sum of those numerators for each of the 10 provinces, and
(II) denominator is the aggregate, over the 10 provinces, of the product of the provincial rate of the insurance premium tax that applies to property insurance and another fraction whose numerator is the amount, for the province, referred to in subparagraph (i) and whose denominator is the sum of those numerators for each of the 10 provinces;
(y) in the case of payroll taxes, the amount determined by the formula
[A × (W1×P1 + W2×P2 + W3×P3 + W4×P4) / (W×P)] + M
where
- A
- is total wages and salaries excluding supplementary labour income, as determined by Statistics Canada for the purpose of its National Income and Expenditure Accounts, paid in the province in the calendar year that ends in the fiscal year, other than the wages and salaries paid by
(i) the federal government sector to employees in the defence industry, and
(ii) the provincial government sector and the local government sector to employees in the provincial administration industry, the local government administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,
- W
- is equal to the aggregate revenue derived from payroll taxes by all provinces that levy those taxes for the fiscal year, as computed by the Minister in accordance with subsections 5(8) and (9),
- W1,W2, W3 and W4
- are weightings whose value is equal to the revenue derived from payroll taxes for the fiscal year, as computed by the Minister in accordance with subsections 5(8) and (9), by
(i) Quebec, in the case of W1,
(ii) Newfoundland, in the case of W2,
(iii) Ontario, in the case of W3, and
(iv) Manitoba, in the case of W4,
- P
- is the gross dollar value before deductions of the payrolls of all employers in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada based on its survey Employment, Payrolls and Hours, other than the payrolls of
(i) employers not covered by the survey, and
(ii) employers in the provincial administration industry, the local administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,
- P1,P2, P3 and P4
- are equal to P minus an amount that is the aggregate of the payrolls of all employers in the province whose payrolls are below a threshold dollar amount minus an amount that is the product of the threshold dollar amount and the number of employers whose payrolls are above the threshold dollar amount, where the threshold dollar amount is the statutory amount of an employer’s payroll that is exempt from provincial payroll tax as of June 1 of the fiscal year
(i) in Quebec, in the case of P1,
(ii) in Newfoundland, in the case of P2,
(iii) in Ontario, in the case of P3, and
(iv) in Manitoba, in the case of P4, and
- M
- is military pay and allowances, excluding supplementary labour income, paid in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of National Accounts;
(z) in the case of provincial and local government property taxes, the amount determined by the formula
[{(A + B + C) × D} + E] + [{((F + G) × H) + I } × J] + [{(K × L) + M} × N]
where
- A
- is equal to the value of personal disposable income for the calendar year that ends in the preceding fiscal year, less provincial and local indirect taxes for that year, other than provincial and local property taxes, non-profit taxes on corporations, motor vehicle licence and permit fees paid by businesses, miscellaneous taxes on natural resources and provincial and local taxes on the sale price and value of real property on its transfer in each province, as determined by Statistics Canada for the purpose of its Provincial Economic Accounts,
- B
- is equal to the product of
(i) the product of the population of the province for the preceding fiscal year and
(A) 0.580172, in the case of Newfoundland,
(B) 0.513686, in the case of Prince Edward Island,
(C) 0.695930, in the case of Nova Scotia,
(D) 0.508889, in the case of New Brunswick,
(E) 1.101451, in the case of Quebec,
(F) 1.401872, in the case of Ontario,
(G) 0.900259, in the case of Manitoba,
(H) 0.614636, in the case of Saskatchewan,
(I) 0.953147, in the case of Alberta, and
(J) 1.432534, in the case of British Columbia, and
(ii) a fraction whose numerator is the aggregate, over the 10 provinces, of the amount calculated under A and whose denominator is the aggregate, over the 10 provinces, of the product referred to in subparagraph (i),
- C
- is equal to the product of
(i) the population of the province, including an estimate for non-permanent residents, for the preceding fiscal year, less the population of the province, including an estimate for non-permanent residents, for the fiscal year that was five years before that preceding fiscal year, and
(ii) a fraction whose numerator is the aggregate, over the 10 provinces, of the amount calculated under A and whose denominator is the aggregate, over the 10 provinces, of the amount referred to in subparagraph (i),
- D
- is equal to a fraction whose numerator is the product of the aggregate, over the 10 provinces, of the amount calculated under E and 0.5216 and whose denominator is the aggregate, over the 10 provinces, of the sum of the amounts calculated under A, B and C,
- E
- is equal to the residential net capital stock in the province, measured in current dollars, as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series,
- F
- is equal to the difference between the aggregate gross domestic product at factor cost in the province for the calendar year that ends in the preceding fiscal year and the gross domestic product at factor cost attributable to the agriculture industry, the elementary and secondary education industry, the universities and colleges industry, the hospital services industry, the provincial administration industry and the local administration industry, in the province for the calendar year that ends in the preceding fiscal year, where those gross domestic products are determined by Statistics Canada for the purpose of its publication entitled Provincial Gross Domestic Product by Industry,
- G
- is equal to the product of
(i) the product of the population of the province for the preceding fiscal year and
(A) 0.580172, in the case of Newfoundland,
(B) 0.513686, in the case of Prince Edward Island,
(C) 0.695930, in the case of Nova Scotia,
(D) 0.508889, in the case of New Brunswick,
(E) 1.398768, in the case of Quebec,
(F) 1.401872, in the case of Ontario,
(G) 0.900259, in the case of Manitoba,
(H) 0.614636, in the case of Saskatchewan,
(I) 0.953147, in the case of Alberta, and
(J) 1.432534, in the case of British Columbia, and
(ii) a fraction whose numerator is the aggregate, over the 10 provinces, of one third of the amount calculated under F and whose denominator is the aggregate, over the 10 provinces, of the product referred to in subparagraph (i),
- H
- is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the value calculated under I multiplied by the fraction 8.77/35.03 and whose denominator is the aggregate, over the 10 provinces, of the sum of the amounts calculated under F and G,
- I
- is equal to the value, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series, of the portion of non-residential net capital stock in the province that consists of building construction in all industries, other than in the agriculture industry, the local administration industry, the provincial administration industry, the primary and secondary education industry, the universities and colleges industry, the business schools and computer management training industry, the technical and trade schools industry, the other schools and instruction industry, the educational support services industry, the hospital services industry, the nursing and residential care facilities industry, the religious and other memberships industry,
- J
- is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the amount determined by the formula [{(A + B + C) × D} + E] multiplied by the fraction 42/56.5 and whose denominator is the aggregate, over the 10 provinces, of the value calculated under I plus the aggregate, over the 10 provinces, of the sum of the amounts calculated under F and G multiplied by the fraction calculated under H,
- K
- is equal to the value of farm land in the province, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its publication entitled National Balance Sheet Accounts,
- L
- is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the amount calculated under M multiplied by the fraction 2.975/0.859 and whose denominator is the aggregate, over the 10 provinces, of the value calculated under K,
- M
- is equal to the value of farm net capital stock in the province that consists of building construction in the agricultural industry, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series, and
- N
- is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the amount determined by the formula [{(A + B + C) × D} + E] multiplied by the fraction 1.5/56.5 and whose denominator is the aggregate, over the 10 provinces, of the value calculated under M plus the product of the aggregate, over the 10 provinces, of the value calculated under K and the fraction calculated under L;
(z.1) in the case of race track taxes, the gross amount wagered in the province in the calendar year that ends in the fiscal year at pari-mutuel tracks on harness and running horse races, as determined by the Canadian Pari-Mutuel Agency;
(z.2) in the case of revenues from lottery ticket sales, the product of 1,000,000 and the sum of
(i) the product of the net revenue after prize payouts from the sale of lottery tickets in the province for the fiscal year and a fraction whose numerator is 0.8 and whose denominator is the aggregate, over the 10 provinces, of that net revenue,
(ii) the product of personal disposable income in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its Provincial Economic Accounts and a fraction whose numerator is 0.1 and whose denominator is the aggregate, over the 10 provinces, of that personal disposable income, and
(iii) the product of the population of the province for the fiscal year and a fraction whose numerator is 0.1 and whose denominator is the population of all 10 provinces for that fiscal year;
(z.3) in the case of revenues, other than those described in paragraphs (z.1) and (z.2), from games of chance, the product of 1,000,000 and the sum of
(i) the product of the net revenue after prize payouts from the sale of games of chance, other than net revenue from the sale of lottery tickets and from race track wagers, in the province for the fiscal year, and a fraction whose numerator is 0.2 and whose denominator is the aggregate, over the 10 provinces, of that net revenue,
(ii) the product of personal disposable income in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its Provincial Economic Accounts and a fraction whose numerator is 0.4 and whose denominator is the aggregate, over the 10 provinces, of that personal disposable income, and
(iii) the product of the population of the province for the fiscal year and a fraction whose numerator is 0.4 and whose denominator is the population of all 10 provinces for that fiscal year;
(z.4) in the case of miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government revenues from sales of goods and services, and miscellaneous local government taxes and revenues, the aggregate, over the revenue sources set out in paragraphs (a) to (k) and (x) to (z.3) of the definition revenue source in subsection 4(2) of the Act and the part of the revenue source set out in paragraph (z.5) of that definition that is not related to natural resources, of the products of
(i) the revenue base for each of those revenue sources for the province for the fiscal year, as determined under this section and section 9, and
(ii) a fraction whose numerator is the aggregate, over the 10 provinces, of the revenue, determined under sections 5 and 9, for that revenue source and whose denominator is the aggregate, over the 10 provinces, of the revenue base for that revenue source, as determined under this section and section 9;
(z.5) in the case of revenues of the Government of Canada from any of the sources referred to in the definition revenue source in subsection 4(2) of the Act that are shared by Canada with the provinces,
(i) for the separate revenue source that is revenue received from the Government of Canada under the Canada-Newfoundland Atlantic Accord Implementation Act, the revenue derived by the province from that revenue source, as determined by Statistics Canada,
(ii) for the separate revenue source that is revenue received from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, the revenue derived by the province from that revenue source, as determined by Statistics Canada, and
(iii) for the separate revenue source that is the province’s share of revenue from any revenue source referred to in the definition revenue source in subsection 4(2) of the Act that is shared by Canada and the province, other than the revenue referred to in subparagraph 5(1)(z.2)(iii) or subparagraph 5(1)(z.5)(i) or (ii), the province’s share of the revenue from that revenue source, as determined by Statistics Canada.
(4) The definitions in this subsection apply in subsection (1), in paragraphs (3)(a) and (b), in this subsection and in subparagraph 9(2)(b)(i).
- allocated corporation taxable income attributable to the province for the fiscal year
allocated corporation taxable income attributable to the province for the fiscal year means, in relation to a province for a fiscal year and to a taxation year of a corporation other than a non-resident-owned investment corporation, as defined in subsection 133(8) of the Income Tax Act or a corporation that is a prescribed federal Crown corporation for the purpose of section 27 of the Income Tax Act and is an agent of Her Majesty, the aggregate, computed on or before the last day of the 12th month of the calendar year following the calendar year in which the taxation year ends, of
(i) the product of
(A) the aggregate, over corporations that are eligible for a deduction under subsection 125(l) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income from earlier taxation years that has not been included in its taxable income for those earlier years, and
(B) a fraction whose numerator is the weighted average, over the 10 provinces, of the small business tax rate in the province and whose denominator is the weighted average, over the 10 provinces, of the general corporate tax rate in the province, where
(I) weighted average, over the 10 provinces, of the small business tax rate in the province means the aggregate, over the 10 provinces, of the product of the effective rate of tax payable under the province’s income tax legislation by corporations who are eligible for a deduction under subsection 125(1) of the Income Tax Act in the calendar year and a fraction whose numerator is the sum of the taxable income of those corporations that is attributable to the province under Part IV of the Income Tax Regulations for the taxation years of those corporations that end in the calendar year that ends in the fiscal year and the amount of that taxable income for earlier taxation years that has not been included in their taxable income for those earlier years and whose denominator is the sum of those numerators for each of the 10 provinces, and
(II) weighted average, over the 10 provinces, of the general corporate tax rate in the province means the aggregate, over the 10 provinces, of the product of the general provincial corporate income tax rate in the province in the calendar year and a fraction whose numerator is the aggregate calculated under clause (ii)(A) and whose denominator is the sum of those numerators for each of the 10 provinces, and
(ii) the difference between
(A) the sum of
(I) the aggregate, over corporations that are not eligible for a deduction under subsection 125(l) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and the amount of that taxable income for its earlier taxation years that has not been included in its taxable income for those earlier years, and
(II) the aggregate, over the corporations referred to in subparagraph (i), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was not attributable to the province for taxation years referred to in that subparagraph because of a deduction, other than a deduction in relation to mineral resources, allowed under paragraph 20(1)(v.1) of the Income Tax Act, and
(B) the sum of
(I) the aggregate, over the corporations referred to in subparagraph (i), of taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was attributable to the province for taxation years referred to in subparagraph (i) because of the application of clause 12(1)(o)(v)(A) or (E) and clause 18(1)(m)(v)(A) or (E) and subsections 69(6) and (7) of the Income Tax Act, and
(II) the aggregate, over investment corporations and mutual fund corporations, of the sum, for each of those corporations, of its taxable income that is attributable to the province for its taxation year that ends in the calendar year that ends in the fiscal year and its taxable income in any of its previous taxation years to the extent that that previous taxable income has not been taken into account under this clause, where the Minister of National Revenue is to determine the aggregate as the amount that is equal to the aggregate, over those corporations, of the product, for each of those corporations, of
1. a fraction whose numerator is the total capital gains refund payable under the Income Tax Act to that corporation in that taxation year and any of those previous taxation years, to the extent that the refund had not been taken into account in the calculation done under this subclause for a previous fiscal year, and whose denominator is the percentage referred to in the description of A in the definition refundable capital gains tax on hand in subsection 131(6) of the Income Tax Act that applies to the taxation year for which the capital gains refund is payable, and
2. a fraction whose numerator is that corporation’s taxable income earned in the province in the taxation year for which the capital gains refund is payable and whose denominator is that corporation’s taxable income for that taxation year. (revenu imposable réparti des personnes morales attribuable à la province pour l’exercice)
- assessed federal individual income tax
assessed federal individual income tax, in relation to an individual in a province for a taxation year, means the amount of income tax that has been assessed and that is attributable to that province in relation to that individual for that taxation year by or under the Income Tax Act, as computed in the next following taxation year and taking into account, before deducting any amount because of section 120, 126 or 127 of that Act, additional assessments for earlier taxation years that have not been included in the amount of the assessment for those earlier years. (impôt fédéral sur le revenu des particuliers établi par voie de cotisation)
- current year’s adjusted federal income tax payable
current year’s adjusted federal income tax payable, in relation to an individual in a province for a taxation year, means the amount of “tax otherwise payable under this Part”, within the meaning of subsection 120(4) of the Income Tax Act, as computed in the following taxation year, excluding any amount related to trust funds. (impôt fédéral sur le revenu rajusté à payer au cours de l’exercice)
- federal income tax payable
federal income tax payable, in relation to an individual in a province for a taxation year, means the amount of “tax otherwise payable under this Part”, within the meaning of subsection 120(4) of the Income Tax Act, as computed in the following taxation year
(a) taking into account additional assessments for earlier taxation years that have not been included in the amount of the assessment for those earlier years, and
(b) subtracting any amount related to refunds of federal capital gain taxes on mutual trust funds assessed as of and after December 31, 2002 for the fiscal year beginning on April 1, 2001. (impôt fédéral sur le revenu à payer)
(5) For the purpose of paragraph (3)(d) and this subsection,
(a) net provincial sales tax revenues means revenues from the revenue source described in paragraph 5(1)(d), net of any provincial sales tax credits and provincial sales tax rebates;
(b) personal expenditures means
(i) in the case of expenditures other than expenditures on insurance, personal expenditures as determined by Statistics Canada for the purpose of its Provincial Economic Accounts, net of any federal or provincial sales taxes other than federal and provincial tobacco and alcoholic beverage excise taxes levied on those expenditures, as determined by Statistics Canada, and
(ii) in the case of expenditures relating to property insurance, accident and sickness insurance, auto insurance or life insurance, gross premiums paid by insured persons for that insurance, net of any federal or provincial sales taxes, as determined by Statistics Canada;
(c) personal expenditure category means one of the j-level categories, as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and used by Statistics Canada to categorize personal expenditures;
(d) housing expenditures means
(i) expenditures on new housing at fair market value, including the value of land, as determined by Statistics Canada, net of any federal or provincial sales taxes, as determined by Statistics Canada,
(ii) expenditures on residential housing repairs and renovations as determined by Statistics Canada for the purpose of its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada, and
(iii) expenditures on residential housing transfer costs as determined by Statistics Canada for the purpose of its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada;
(e) housing expenditure category means one of the following three categories used by Statistics Canada to categorize housing expenditures for the purpose of its Provincial Economic Accounts:
(i) new residential housing expenditures,
(ii) residential housing repairs and renovation expenditures, and
(iii) residential housing transfer cost expenditures;
(f) business sector industry means
(i) for intermediate input expenditures, one of the business sector industries that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts, and
(ii) for machinery and equipment and non-residential construction capital expenditures, one of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts capital formation estimates;
(g) non-business sector industry means the following non-business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and W-level Interprovincial Input-Output Accounts, namely non-profit, hospital, other health institutions, university, other educational institutions, and municipal government;
(h) intermediate input commodity means one of the intermediate input commodities that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts;
(i) intermediate input expenditures means
(i) in the case of expenditures by a business sector industry, expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada, and
(ii) in the case of expenditures by a non-business sector industry, expenditures on intermediate input commodities, as determined by Statistics Canada using data from its Provincial Economic Accounts, for the purpose of its W-level Interprovincial Input-Output Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada;
(j) capital expenditures for machinery and equipment means capital expenditures for machinery and equipment, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada; and
(k) capital expenditures for non-residential construction means capital expenditures for non-residential construction, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada.
(6) For the purpose of paragraph (3)(f) and this subsection,
(a) adjusted number of litres of gasoline taxed at road-use rate in the province means the number of litres of gasoline taxed at road-use rate sold in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Road Motor Vehicles, Fuel Sales or by the Minister, if Statistics Canada does not make the determination, based on any other relevant information including the revenues from those sales divided by that tax rate, minus, in the case of a province where gasoline sold for use by farm trucks is taxed at road-use rate, the amount referred to in paragraph (c);
(b) average tax rate means
(i) for the purpose of subparagraph (3)(f)(i), the aggregate, over the 10 provinces, of the product of the provincial rate of gasoline tax that applies to road-use gasoline sold in the province in the calendar year that ends in the fiscal year and a fraction whose numerator is the adjusted number of litres of gasoline taxed at road-use rate in that province in the calendar year that ends in the fiscal year and whose denominator is the sum of those numerators for each of the 10 provinces,
(ii) for the purpose of subparagraph (3)(f)(ii), the aggregate, over the 10 provinces, of the product of the tax rate that applies to aviation fuel sold in the province in the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of aviation fuel sold in that province in the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Gasoline and Other Petroleum Fuels Sold or by the Minister, if Statistics Canada does not make the determination, based on any other relevant information and whose denominator is the sum of those numerators for each of the 10 provinces, and
(iii) for the purpose of subparagraph (3)(f)(iii), the aggregate, over the 10 provinces, of the product of the tax rate that applies to gasoline sold for use by farm trucks in the province in the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of gasoline sold for use by farm trucks in that province and whose denominator is the sum of those numerators for each of the provinces; and
(c) number of litres of gasoline sold for use by farm trucks in the province means 300 times the number of cubic metres of motor gasoline used in the agriculture industry in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada or by the Minister, if Statistics Canada does not make the determination, based on any other relevant information.
(7) For the purposes of paragraph (3)(g) and this subsection,
(a) adjusted number of litres of diesel fuel taxed at road-use rate in the province means an amount that is the difference between
(i) the number of litres of diesel fuel
(A) sold in the province for use on roads, in the case of a province in which tax at road-use rate is not paid throughout the calendar year, this number as determined by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada or any other relevant information, if that data is not available, or
(B) taxed at road-use rate sold in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Road Motor Vehicles, Fuel Sales or by the Minister, if Statistics Canada does not make the determination, based on other relevant information, in any other case, and
(ii) the number that is
(A) in the case of the Province of Ontario, the number of litres of diesel fuel sold for use by farm trucks in Ontario, as determined by the Minister based on any relevant information, and
(B) in the case of any other province, the product of
(I) the number of litres of diesel fuel
1. sold in the province for use on roads, as determined by the Minister based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada, in the case referred to in clause (i)(A), or
2. taxed at road-use rate in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Road Motor Vehicles, Fuel Sales or by the Minister, if Statistics Canada does not make the determination, based on any other relevant information, in any other case, and
(II) in the case of the province of
1. Prince Edward Island, 0.3,
2. Quebec and Newfoundland, 0.25,
3. Nova Scotia and New Brunswick, 0.15, and
4. Manitoba, Saskatchewan, Alberta and British Columbia, zero;
(b) average tax rate means
(i) for the purpose of subparagraph (3)(g)(i), the aggregate, over the 10 provinces, of the products obtained when the provincial rate of diesel tax applicable to road-use diesel fuel sold in the province in the calendar year that ends in the fiscal year is multiplied by a fraction whose numerator is the adjusted number of litres of diesel fuel taxed at road-use rate in that province in the calendar year that ends in the fiscal year, and whose denominator is the sum of those numerators for each of the 10 provinces,
(ii) for the purpose of subparagraph (3)(g)(ii), the aggregate, over the 10 provinces, of the products of the tax rate that applies to railway fuel sold in the province in the calendar year that ends in the fiscal year and a fraction whose
(A) numerator is
(I) in the case of a province in which railway fuel is not taxed throughout the calendar year or for which data are not available, the number of litres of railway fuel sold in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada, or
(II) in any other case, the number of litres of railway fuel sold in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Gasoline and Other Petroleum Fuels Sold or by the Minister based on any other relevant information, and
(B) denominator is the sum of those numerators for each of the 10 provinces, and
(iii) for the purpose of subparagraph (3)(g)(iii), the aggregate, over the 10 provinces, of the product of the tax rate that applies to diesel fuel sold for use by farm trucks in the province and a fraction whose numerator is the number of litres of diesel fuel used by farm trucks in the province and whose denominator is the sum of those numerators for each of the 10 provinces; and
(c) number of litres of diesel fuel sold for use by farm trucks in the province means 200 times the number of cubic metres of diesel fuel used in the agriculture industry in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Quarterly Report on Energy Supply-Demand in Canada or by the Minister based on any other relevant information.
(8) For the purpose of paragraph (3)(k),
(a) adjusted taxable balance means the positive difference in the taxation year that ended in the previous fiscal year, as determined by the Minister through the micro-simulation model, between
(i) the sum of the taxable income of an individual who files a tax return and of any individual who is related to that tax-filing individual in a manner described in paragraph 118(1)(a) of the Income Tax Act, and
(ii) five times the total non-refundable tax credits of both those individuals; and
(b) adjusted net family income means, as determined by the Minister through the micro-simulation model, the sum of the net income in the taxation year that ended in the previous fiscal year of an individual who files a tax return and of any individual who is related to that tax-filing individual in a manner described in paragraph 118(1)(a) of the Income Tax Act, but that sum is reduced by
(i) $3,000, if the two individuals are living in relation to each other in the manner described in that paragraph,
(ii) $3,000, for each person who is 65 or more years old in the calendar year who is included in the family that includes those individuals,
(iii) $3,000 less one half of their child care expense, for each dependent child included in the family, and
(iv) $3,000 for each person included in the family for whom a disability, or an attendant or nursing home expense, is claimed.
(9) For the purpose of this section,
(a) the words gas, hydrocarbon and oil have the same meaning as in subsection 2(1) of the Energy Administration Act;
(b) the expression new oil has the meaning assigned to the expression classified as new oil by subsection 5(2);
(c) the expression third tier oil has the meaning assigned to the expression classified as third tier oil by subsection 5(2); and
(d) the expression relevant data in paragraphs (3)(m), (o), (q) and (r) means oil production data for the calendar year that ends in the fiscal year, or for the most recent calendar year for which that data is available, obtained from any of
(i) Statistics Canada,
(ii) the Department of Natural Resources,
(iii) the Petroleum Monitoring Agency, or
(iv) the provinces or any provincial energy or resource board, commission or authority.
(10) For the purposes of paragraphs (3)(m), (n), (o), (q) and (r), the expression adjustment factor for oil means the amount determined by the following formula, which amount is equal to zero if the expression “(A + X)” is equal to zero:
[(A × C)/B + (X × Z)/Y] × [(B + Y)/(C + Z) × 1/(A + X)]
where
- A
- is the value of oil produced in the province in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the province, as determined by the Minister on the basis of information provided by the province;
- B
- is the value of oil produced in the 10 provinces in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces;
- C
- is the revenue from oil for the 10 provinces in the fiscal year that is vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces;
- X
- is the value of oil produced in the province in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the province, as determined by the Minister on the basis of information provided by the province;
- Y
- is the value of oil produced in the 10 provinces in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces; and
- Z
- is the revenue from oil for the 10 provinces in the fiscal year that is not vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces.
(11) The definitions in this subsection apply in subsection (10).
- revenue from oil
revenue from oil means the revenues determined in accordance with paragraphs 5(1)(m), (n), (o), (q) and (r). (revenus tirés du pétrole)
- value of oil
value of oil means the total value of the marketable production of crude oil from naturally occurring hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction. (valeur du pétrole)
(12) For the purpose of paragraph (3)(s), the expression adjustment factor for natural gas means the amount determined by the following formula, which amount is equal to zero if the expression “(A + X)” is equal to zero:
[(A × C)/B + (X × Z)/Y] × [(B + Y)/(C + Z) × 1/(A + X)]
where
- A
- is the value of natural gas produced in the province in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the province, as determined by the Minister on the basis of information provided by the province;
- B
- is the value of natural gas, produced in the 10 provinces in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces;
- C
- is the revenue from natural gas for the 10 provinces in the fiscal year that is vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces;
- X
- is the value of natural gas produced in the province in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the province, as determined by the Minister on the basis of information provided by the province;
- Y
- is the value of natural gas produced in the 10 provinces in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces; and
- Z
- is the revenue from natural gas for the 10 provinces in the fiscal year that is not vested in Her Majesty in right of the provinces, as determined by the Minister on the basis of information provided by the provinces.
(13) The definitions in this subsection apply in subsection (12).
- revenue from natural gas
revenue from natural gas means the revenues determined in accordance with paragraph 5(1)(s). (revenus tirés du gaz naturel)
- value of natural gas
value of natural gas means the total value of the marketable production of gas and gas by-products from naturally occurring hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Oil and Gas Extraction. (valeur du gaz naturel)
(14) For the purpose of paragraph (3)(z.2), net revenue after prize payouts from the sale of lottery tickets means gross revenue from the sale of lottery tickets less prize expenses in relation to those sales, and
(a) includes that revenue from the sale of lottery tickets by
(i) the provincially owned or provincially controlled business enterprises, boards, commissions or authorities referred to in subparagraphs 5(1)(z.2)(i) and (ii),
(ii) in the case of a lottery of the type referred to in subparagraph 5(1)(z.2)(iii), the Government of Canada,
(iii) charitable organizations,
(iv) aboriginal governments, and
(v) any other commercial enterprises, non-profit organizations or other entities, including entities controlled, managed or operated by, or on behalf of, aboriginal persons;
(b) includes net revenue after prize payouts from the sale of lottery tickets for any of the games of chance listed in the definition games of chance that involve the sale of lottery tickets in subsection 5(2);
(c) does not include net revenue after prize payouts from the sale of raffle tickets; and
(d) does not include net revenue after prize payouts from the sale of lottery tickets in casinos, if the profits remitted or paid to the provincial government that are generated by those sales are counted as revenue from the revenue source set out in paragraph (z.3) of the definition revenue source in subsection 4(2) of the Act.
(15) For the purpose of paragraph (3)(z.3), net revenue after prize payouts from the sale of games of chance, other than net revenue from the sale of lottery tickets and from race track wagers means gross revenues from the sale of games of chance, other than from the sale of lottery tickets and race track wagering games, less prize expenses in relation to those sales, and
(a) includes that revenue from the sale of those games of chance by
(i) the provincially owned or provincially controlled business enterprises, boards, commissions or authorities referred to in subparagraphs 5(1)(z.3)(i) and (ii),
(ii) charitable organizations,
(iii) aboriginal governments, and
(iv) any other commercial enterprises, non-profit organizations or other entities, including entities controlled, managed or operated by, or on behalf of, aboriginal persons;
(b) includes net revenue after prize payouts from sales of
(i) games of chance delivered through video lottery terminals,
(ii) games of chance delivered through slot machines, including slot machines located at race tracks,
(iii) games of chance sold at casinos, including charity casinos, and, for greater certainty, includes games of chance described in subparagraphs (i) and (ii),
(iv) conventional paper bingo, electronic bingo, linked bingo and satellite bingo, and
(v) lottery ticket games sold at casinos, unless the net revenues from those sales are included in the revenue base described in paragraph (3)(z.2);
(c) does not include net revenue after prize payouts from the sale of raffle tickets; and
(d) does not include revenue from the sale by casinos of food, drink, lodging, parking space or any other goods or services other than games of chance.
(16) For the purpose of paragraph (3)(l),
(a) Crown land has the same meaning as in subsection 5(2);
(b) private land has the same meaning as in subsection 5(2);
(c) regional price means the price per unit, as calculated by Statistics Canada for the purpose of the certificate submitted under subsection 9(2) by dividing value of production by volume of production using the value and volume of production data determined by Statistics Canada for the purpose of its publication entitled Logging Industry, of logs and bolts, pulpwood, industrial roundwood or fuelwood and firewood, as the case may be, produced
(i) in the case of Newfoundland, in Newfoundland,
(ii) in the case of New Brunswick, Prince Edward Island and Nova Scotia, in the three provinces combined,
(iii) in the case of Quebec, in Quebec,
(iv) in the case of Ontario, in Ontario,
(v) in the case of Manitoba, Saskatchewan and Alberta, in the three provinces combined, and
(vi) in the case of British Columbia, in British Columbia.
(17) For the purpose of paragraph (3)(v), mining and quarrying industry means the mining sub-industry of the mining and oil and gas industry as defined in the North American Industrial Classification System.
(18) For the purpose of paragraph (3)(x), moneys received by a provincial government enterprise mentioned in that paragraph that are from the provincial government consolidated revenue fund, or its equivalent, or that are the proceeds from a specific tax, or a part of a specific tax, are deemed to be premiums of that enterprise.
- SOR/2003-71, s. 1
- SOR/2003-320, s. 1
7 Despite paragraphs 6(3)(e) and (t), if a province has changed its method of accounting for a fiscal year so that the revenues referred to in those paragraphs are derived during a period that is either more or less than 12 months, the Minister may adjust the amount of those revenues for that fiscal year to offset any effect of that change.
Interim Estimates
8 (1) For every fiscal year in the fiscal arrangements period,
(a) an estimate, in accordance with subsection (3), of the amount of any fiscal equalization payment that is payable under the Act to a province for the fiscal year shall be made by the Minister
(i) before April 16 of that fiscal year,
(ii) during the period beginning on the first day of September and ending on the 12th day of October of that fiscal year,
(iii) during the period beginning on the 12th day of January and ending on
(A) March 15, 2000, if that fiscal year ends on March 31, 2000, and
(B) the last day of February of that fiscal year, in any other case,
(iv) during the period beginning on the first day of September and ending on the 12th day of October of the first fiscal year after that fiscal year,
(v) during the period beginning on the 12th day of January and ending on the last day of February of the first fiscal year after that fiscal year,
(vi) during the period beginning on the first day of September and ending on the 12th day of October of the second fiscal year after that fiscal year, and
(vii) during the period beginning on the 12th day of January and ending on the last day of February of the second fiscal year after the end of that fiscal year; and
(b) if the Minister believes that there is new information available that would have a significant effect on the amount of the fiscal equalization payment that is payable under the Act to one or more provinces, the Minister may replace an estimate referred to in paragraph (a) by another estimate made
(i) during the second quarter of that fiscal year,
(ii) during March of that fiscal year, and
(iii) during any period, other than a period specified in paragraph (a), that begins on the first day of the final month of a quarter after the end of that fiscal year and ends on the 12th day of the next quarter, if the final computation referred to in subsection 9(1) has not been made.
(2) If an estimate
(a) made under subparagraph (1)(a)(i) or the Fiscal Equalization Payment Regulations, 1999 indicates that a fiscal equalization payment is payable to a province for a fiscal year, the Minister shall pay to the province, on account of the final payment for that fiscal year, an amount equal to one twenty-fourth of the amount so estimated on the first and third working days after the 15th calendar day of each month in that fiscal year;
(b) made under subparagraph (1)(a)(ii) or (iii) or (b)(i) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised, the Minister shall
(i) in the case of an amount that remains payable to the province, adjust the remaining payments referred to in paragraph (a) for that fiscal year in accordance with the new estimate, beginning with the first payment after the date of that estimate, and
(ii) in the case of an overpayment that has been made to the province, recover the amount of that overpayment before the end of the fiscal year;
(c) made under subparagraph (1)(b)(ii) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised, the Minister shall
(i) in the case of an amount that remains payable to the province, pay that amount, and
(ii) in the case of an overpayment that has been made,
(A) recover the amount of that overpayment in that month, or
(B) on the the province’s request, recover the overpayment in equal monthly instalments in the next fiscal year; and
(d) made under subparagraph (1)(a)(iv), (v), (vi) or (vii) or (b)(iii) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised because
(i) an amount remains payable to the province, the Minister shall
(A) in the case of an estimate made under any of those subparagraphs other than (1)(a)(v) or (vii), pay that amount, and
(B) in the case of an estimate made under either subparagraph (1)(a)(v) or (vii), pay that amount minus any amount that the Minister, during the month of March immediately following the period referred to in subparagraph (1)(a)(v) or (vii), determines to be owing by the province to Canada as a result of an overpayment made by Canada under a tax collection agreement entered into with the province under Part III of the Act, and
(ii) an overpayment has been made to the province, the Minister shall, subject to section 24, recover the amount of that overpayment in the month during which the estimate was made or in the next following month, but in the case of an estimate made
(A) under subparagraph (1)(a)(iv) or (vi) or (b)(iii), the Minister may, on the province’s request, recover that overpayment in equal monthly instalments in the remaining months of that fiscal year during which the estimate was made, and
(B) under subparagraph (1)(a)(v) or (vii), the Minister may,
(I) on the province’s request, recover that overpayment in equal monthly instalments in the next following fiscal year, or
(II) recover any amount that remains after setting off from the amount of that overpayment any amount that the Minister, during the month of March immediately following the period referred to in that subparagraph, determines to be owing by Canada to the province as a result of an underpayment made by Canada under a tax collection agreement entered into with the province under Part III of the Act.
(3) Despite anything in these Regulations, for the purpose of determining the advances on account, and subsequent adjustments, that may be made in relation to the fiscal equalization payments that apply to a province for a fiscal year under subsections (1) and (2),
(a) the revenue to be equalized from a revenue source for all the provinces for the fiscal year shall be calculated on the basis of the information that is available to the Minister at the time the estimate is made;
(b) the year to be used in determining the revenue base for a revenue source for the fiscal year shall be the latest year for which representative information is available;
(c) the population of a province for the fiscal year shall be the population as estimated by
(i) in the case of an estimate under subparagraph (1)(a)(i) or (ii), the Minister, on the basis of population statistics provided by the Chief Statistician of Canada, and
(ii) in the case of an estimate under any other subparagraph of subsection (1), the Chief Statistician of Canada;
(d) the revenue base for the province of each revenue source referred to in paragraphs (a), (d), (e), (f), (h), (j), (k), (z.2) and (z.3) of the definition revenue source in subsection 4(2) of the Act for the fiscal year may be replaced by the product of
(i) the aggregate, over the 10 provinces, of the revenue base for that revenue source for the year referred to in paragraph (b), and
(ii) the product of the provincial share of that revenue base for that revenue source for that year and a fraction whose
(A) numerator is one plus another fraction whose numerator is the provincial percentage of the population of all 10 provinces for the fiscal year and whose denominator is that percentage for the year referred to in paragraph (b), and
(B) the denominator that is two; and
(e) if the year that is used for the revenue base for a revenue source in an interim estimate under subsection (1) is an earlier year than the one that is to be used in the final computation for a fiscal year referred to in to subsection 9(1), the Minister may adjust the provincial revenue base to take into account economic factors or trends that could bring about a significant change in the provincial share of that revenue base between the year that is used for that interim estimate and the year that is to be used for the final computation for that fiscal year.
(4) For the purposes of paragraphs (3)(d) and (e), the provincial share of a revenue base for a revenue source for a fiscal year is a fraction whose
(a) numerator is the revenue base for that revenue source for that fiscal year for the province; and
(b) denominator is the revenue base for that revenue source for that fiscal year for the 10 provinces.
(5) If an interim estimate referred to in subsection (1) indicates an overpayment to a province for a fiscal year, the Minister may, subject to subsection (2) and section 24, recover the amount of that 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.
Final Computation
9 (1) Subject to section 10, within 30 days after the Minister receives the certificate submitted under subsection (2) for a fiscal year, the Minister shall make the final computation of the amount of any fiscal equalization payment that is payable to a province for that fiscal year under the Act and shall later provide the provinces with tables that set out the details of that computation.
(2) The Chief Statistician of Canada shall, for each fiscal year in the fiscal arrangements period, prepare and submit to the Minister, at the end of the 29 month-period following the end of that fiscal year, a certificate for that fiscal year, based on the most recent information that has been prepared by Statistics Canada for that fiscal year, that sets out
(a) the revenue from each revenue source set out in the definition revenue source in subsection 4(2) of the Act for each province for the fiscal year in accordance with Statistics Canada’s determination of revenues for the purpose of its Financial Management System, but the Chief Statistician of Canada may aggregate the revenues from each of the following groups of revenue sources if he or she is unable, on the basis of that determination, to differentiate between the revenue for a province from the revenue sources
(i) set out in paragraphs (f) and (g) of that definition in that subsection of the Act,
(ii) set out in paragraphs (h) and (i) of that definition in that subsection of the Act,
(iii) set out in paragraphs (m) to (r) of that definition in that subsection of the Act,
(iv) set out in paragraphs (z.2) and (z.3) of that definition in that subsection of the Act, or
(v) described in subparagraphs (5)(1)(l)(i) and (ii) of these Regulations;
(b) the information that is required to calculate each revenue base as defined in paragraphs 6(3)(b) to (z.5) for each province for the fiscal year, but not the information required to calculate
(i) the allocated corporation taxable income attributable to the province for the fiscal year referred to in subparagraph 6(3)(b)(i),
(ii) the data described in paragraphs 6(3)(k), (m), (o), (q), (r), (x) and (z.1), or
(iii) the forestry volume data described in paragraph 6(3)(l);
(c) the population of the province for the fiscal year; and
(d) Canada’s gross domestic product, determined in accordance with section 4, for each calendar year beginning with the calendar year 1999 until the calendar year that ends in the fiscal year.
(2.1) Where applicable, the Chief Statistician of Canada shall, for each fiscal year in the fiscal arrangements period, except for the fiscal year 1999-2000, prepare and submit to the Minister, 30 days after the day on which the certificate referred to in subsection (2) has been submitted to the Minister, a new certificate that sets out the adjustment relating to the population of the provinces for the fiscal year, based on the most recent information that has been prepared by Statistics Canada for that fiscal year.
(3) If revenues from a group of revenue sources have been aggregated under any of subparagraphs (2)(a)(i) to (v), the Minister shall determine the portion of that aggregate that is to apply to each of the revenue sources included in the group.
(4) The Minister shall make the final computation referred to in subsection (1) for a fiscal year on the basis of the information
(a) submitted in the certificate referred to in subsection (2); and
(b) provided to the Minister in relation to matters referred to in subsection (2) by any other source, including the Minister of National Revenue, the Minister of Agriculture and Agri-Food, the Minister of Natural Resources and the provinces, if information in relation to those matters that is required for that final computation has not been provided in that certificate.
(5) For the purpose of making a final computation referred to in subsection (1) for a fiscal year, if the Chief Statistician of Canada is unable, for any reason including the delay or discontinuation of a Statistics Canada survey, before the end of the 29-month period mentioned in subsection (2) to set out in the certificate the information referred to in that subsection that is required to calculate a particular revenue base for a province for the fiscal year, the Minister shall, after consulting with Statistics Canada, estimate a revenue base for the province based on any other information that is available.
(6) If, as a result of a final computation referred to in subsection (1), there remains an outstanding amount payable to a province for a fiscal year, the Minister shall pay that amount to the province.
(6.1) If, as a result of the computations referred to in subsection 4(1) of the Act, there remains an outstanding amount payable to a province for the fiscal year beginning on April 1, 2004, the Minister shall pay that amount to the province in March 2005.
(6.2) If, as a result of a final computation referred to in subsection 4(4) of the Act, there has been an overpayment made to a province for the fiscal years in the period beginning on April 1, 2002 and ending on March 31, 2004, the Minister shall, subject to section 24, recover the amount of the overpayment in March 2005.
(7) If a final computation referred to in subsection (1) shows that an overpayment has been made to a province for a fiscal year, the Minister may, subject to section 24, recover the amount of that 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.
(7.1) If a final computation referred to in subsection 4(4) of the Act shows that an overpayment has been made to a province for a fiscal year, the Minister may, subject to section 24, recover the amount of that 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.
- SOR/2003-71, s. 2
- SOR/2005-54, s. 1
10 (1) Despite anything in this Part, a fiscal equalization payment made under the Act is subject to any adjustment that may be necessary because
(a) at any time after making the final computation referred to in to subsection 9(1), a calculation error is discovered; or
(b) within six months after the making of a final computation referred to in subsection 9(1), the Chief Statistician of Canada provides the Minister with information described in subsection 9(5) that had been missing from the certificate under subsection 9(2).
(2) An adjustment referred to in subsection (1) is subject to subsections 9(6) and (7).
PART 2Fiscal Stabilization Payments
11 An application referred to in subsection 6(7) of the Act shall be signed by the province’s Minister of Finance or Treasurer and include the following information:
(a) a statement that indicates the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from personal income taxes as defined in paragraph 5(1)(a) and the portion of those revenues for each of those fiscal years that is received under a tax collection agreement with the Government of Canada;
(b) a statement that indicates the total amount of the provincial personal income taxes assessed or reassessed for each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial personal income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial personal income taxes;
(c) a statement that indicates the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from that portion of the revenue source referred to in paragraph (b) of the definition revenue source in subsection 4(2) of the Act that consist of revenues from corporation income taxes and revenues derived from government business enterprises as described in paragraph 5(1)(b) of these Regulations and the portion of those revenues for each such fiscal year that is received under a tax collection agreement with the Government of Canada;
(d) a statement that indicates the total amount of the provincial corporation income taxes assessed or reassessed for each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial corporation income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial corporation income taxes;
(e) a statement of the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from each of the revenue sources described in paragraphs 5(1)(c) to (y), (z.1) to (z.3) and (z.5);
(f) a statement that provides a further breakdown of the revenues from any of the revenue sources referred to in paragraphs (a) to (e) into component taxes, fees, levies, premiums or royalties if there was a change in the rates or structures at which those component taxes, fees, levies, premiums or royalties were levied during the fiscal year or during that part of the immediately preceding fiscal year after its first day;
(g) a statement that describes any change in the rates or structures at which a provincial tax, fee, levy, premium or royalty was levied during the fiscal year or during that part of the immediately preceding fiscal year after its first day and that indicates the effective date of the change;
(h) a statement that estimates the change in revenues in the fiscal year from the immediately preceding fiscal year from each of the changes described in the statement referred to in paragraph (g);
(i) a statement that describes any change in the accounting practices in the public accounts of the province from those of the immediately preceding fiscal year; and
(j) any other information that relates to the revenue-raising system of the province that the Minister requests.
12 (1) The Minister shall make the adjustment for a fiscal year referred to in paragraph 6(1)(b) of the Act by
(a) adding to the amount that would otherwise be determined, the decrease in the province’s revenues in the fiscal year that results from changes in the rates, or structures, of provincial taxes or other modes of raising the revenue of the province, including a change that relates to
(i) the termination of an existing tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal year,
(ii) a decrease, averaged over a year, in the rate of a tax, fee, levy, premium or royalty,
(iii) a change that results in a decrease in derived revenues in the ranges of the base, averaged over a year, to which the rate of a tax, fee, levy, premium or royalty is applied,
(iv) a change that results in a decrease in derived revenues in the classification of taxpayers, if the rate of a tax, fee, levy, premium or royalty varies according to an attribute of taxpayers, including the nature of their activity, the form of their business organization, the kind of ownership of their business or their age,
(v) an increase in deductions, credits or allowances, averaged over a year, that a taxpayer may claim in determining the amount of the tax, or the base to which the taxpayer’s tax rate is to be applied,
(vi) the adding, broadening or enlarging of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) an increase in rebates, averaged over a year, for a tax, fee, levy, premium or royalty,
(viii) a decrease, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) a decrease in the proportion of the profits remitted to the provincial government by its own enterprises, or
(x) a decrease in the charges for the rental or use of government property, including water power rentals;
(b) subtracting from the amount that would otherwise be determined, the increase in the province’s revenues in the fiscal year that results from changes in the rates, or structures, of provincial taxes or other modes of raising the revenue of the province, including a change that relates to
(i) the introduction of a new, tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal year,
(ii) an increase, averaged over a year, in the rate of a tax, fee, levy, premium or royalty,
(iii) a change that results in an increase in derived revenues in the ranges of the base, averaged over a year, to which the rate of a tax, fee, levy, premium or royalty is applied,
(iv) a change that results in an increase in derived revenues in the classification of taxpayers, if the rate of a tax, fee, levy, premium or royalty varies according to an attribute of taxpayers, including the nature of their activity, the form of their business organization, the kind of ownership of their business or their age,
(v) a decrease in deductions, credits or allowances, averaged over a year, that a taxpayer may claim in determining the amount of the tax, or the base to which the taxpayer’s tax rate is to be applied,
(vi) the removal, narrowing or restricting, of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) a decrease in rebates, averaged over a year, for a tax, fee, levy, premium or royalty,
(viii) an increase, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) an increase in the proportion of the profits remitted to the provincial government by its own enterprises, or
(x) an increase in the charges for the rental or use of government property, including water power rentals.
(2) For the purpose of subsection (1), a change that results from an indexation provision that has the effect of periodically changing the rate or structure of a tax, or other mode of raising the province’s revenue, as a consequence of a change in the level of prices in the economy as a whole or in the actual or deemed price of goods or services to which it applies, shall be considered to be a change in the rate or in the structure of that tax or other mode.
13 (1) For the purpose of this Part, the total revenue derived by a province for a fiscal year from the revenue sources set out in the definition revenue source in subsection 4(2) of the Act is
(a) in the case of personal income taxes for a province that has entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under subsection 6(3) of the Act, based on the information that is available to the Minister for the administration of that tax collection agreement;
(b) in the case of the part of the revenue source set out in paragraph (b) of that definition that is related to corporation income taxes for a province that has entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under subsection 6(5) of the Act, based on the information that is available to the Minister for the administration of that tax collection agreement; and
(c) in the case of any other revenue source, or any other part of a revenue source, the amount that the Minister determines, based on the information that the province provides to the Minister in its application as the Minister adjusts, if necessary, and that is contained in the certificate submitted under subsection 9(2).
(2) In computing the revenue derived by a province from a revenue source for a fiscal year, other than from the revenue sources set out in paragraphs (a) and (b) of the definition revenue source in subsection 4(2) of the Act, the Minister may deduct from that revenue source the amounts referred to in paragraphs 5(8)(a) and (b) of the Regulations.
(3) For the purpose of this Part, in computing the revenue derived by a province from a revenue source, the Minister may make any adjustment that the Minister believes is necessary to take into account
(a) any change between the accounting practices used in the public accounts of the province in a fiscal year for which an application for a fiscal stabilization payment has been received and those used in the province in the immediately preceding fiscal year; or
(b) any change between the methodology of Statistics Canada used for reporting revenue derived by a province from a revenue source in a fiscal year for which an application for a fiscal stabilization payment has been received and that used in the immediately preceding fiscal year.
14 A province may make an application signed by its Minister of Finance or Treasurer for the payment of advances on account of fiscal stabilization payments for a fiscal year that may become payable to the province. The application must be
(a) based on information on revenues that relate to the first five months or more of the fiscal year; and
(b) supported by the comparative revenue information that is available to the province for the period referred to in paragraph (a) and for the corresponding period of the previous fiscal year, including information that relates to any changes in the revenue that is subject to stabilization that results from changes either in the rates or in the structures of provincial taxes or other modes of raising the revenue of the province from those that were in effect during the immediately preceding fiscal year.
15 (1) The Minister may, after receiving from a province a completed application referred to in section 11 or 14 for a fiscal year, make one or more estimates of any amount that may be payable to that province under the Act and these Regulations on account of fiscal stabilization for that fiscal year.
(2) If the Minister estimates under subsection (1) that a fiscal stabilization payment is to be paid to the province for the fiscal year, the Minister may make one or more interim payments to the province on account of that payment. The cumulative total of those payments must not be more than the amount calculated under subsection 6(8) of the Act.
16 (1) An amount lent to a province under subsection 6(9) of the Act is repayable or recoverable in 60 equal monthly instalments, the first of which becomes due and payable 30 days after the day on which the amount is lent.
(2) Despite anything in this Part, if an amount is lent to a province before the last day of February of the fiscal year for which an application has been received, that amount shall be repayable or recoverable in equal monthly instalments on the first day of every month throughout the period beginning on the April 1st that immediately follows the lending of that amount and ending five years after the day on which that amount was lent.
17 (1) The Minister shall make a final computation of any fiscal stabilization payment that may be paid to a province under section 6 of the Act for a fiscal year within 32 months after the end of the fiscal year for which an application is made and shall provide the province with a statement that describes the manner in which that computation was made.
(2) If the amount of the final computation of the fiscal stabilization payment to be paid is more than the total amount of interim payments made under subsection 15(2), the Minister shall pay the difference between those amounts to the province.
18 Subject to section 24 and to the lending, under subsection 6(9) of the Act, to a province of an overpayment, the Minister may, in whole or in part, deduct the amount of an overpayment in relation to a fiscal stabilization payment that the Minister determines, at any time, has been made to a province from any amount that is payable to the province under the Act. Any part of the overpayment that is not so deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.
19 (1) If the Minister determines, at any time, that an amount lent to a province under subsection 6(9) of the Act is more than the difference between the fiscal stabilization payment calculated under subsections 6(1) to (6) of the Act and the limit for that payment determined in accordance with subsection 6(8) of the Act, the amount of the difference is to be deducted from any amount payable to the province under the Act. Any part of that difference that is not so deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.
(2) An amount that is repaid by, or recovered from, the province under section 16 of these Regulations before the deduction or recovery referred to in subsection (1) reduces the balance that would otherwise have been determined to be outstanding on a loan to a province made under subsection 6(9) of the Act.
(3) On making a deduction or recovery referred to in subsection (1), each monthly instalment that otherwise would be due and payable under section 16 is reduced to the quotient that results from dividing the difference between the balance referred to in subsection (2) and the amount of the deduction or recovery by the number of instalments remaining to be paid.
PART 3Revenue Guarantee
20 (1) The Minister may, at the written request of a province and before making the computation referred to in section 10 of the Act, estimate, on the basis of information that is available to the Minister, any amount of the provincial personal income tax revenue guarantee payment that may be paid to the province for the fiscal year under section 9 of the Act.
(2) The Minister may, in one or more advances, pay that estimated amount to the province.
21 (1) At any time before making the final computation referred to in section 22, the Minister may re-estimate the amount referred to in subsection 20(1).
(2) The Minister may pay to the province any additional amount that may be paid in accordance with that re-estimated amount.
(3) Subject to section 24, if the Minister determines, on re-estimating an amount under subsection (1), that an overpayment has been made to the province under subsection 20(2), the Minister may recover the amount of that 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.
22 (1) The Minister shall, not later than 30 months after the end of a fiscal year,
(a) make a final computation of any provincial personal income tax revenue guarantee payment that may be paid to the province for the fiscal year; and
(b) provide the province with a statement that describes the manner in which that computation was made.
(2) Subject to section 24, if the Minister determines, on making the final computation, that an overpayment has been made to the province under this Part, the Minister may recover the amount of that 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.
(3) The Minister may, within 30 days after making the final computation , pay to the province any outstanding amount that may be paid as a result of that computation.
23 For the purpose of paragraph (b) of the definition provincial personal income tax rate in section 12 of the Act, the provincial personal income tax rate that applies to a taxation year for the Province of Quebec is the quotient that results from dividing
(a) the total amount of Quebec’s personal income taxes, assessed or reassessed not later than 24 months after the end of the fiscal year, as determined by the Minister based on the information that Quebec makes available to the Minister, as if the special abatement referred to in subsection 4(4) of the Act had not been provided,
by
(b) the total revenue for Quebec determined under subparagraph 10(a)(ii) of the Act.
PART 4General
Recovery of Net Overpayments for Fiscal Year
24 (1) The Minister shall, for each province in relation to each fiscal year in the fiscal arrangements period or the period beginning on April 1, 2005 and ending on March 31, 2009, calculate the net aggregate of overpayments to be recovered from that province by determining
(a) the net total of all underpayments and overpayments in relation to fiscal equalization payments — other than the amounts determined under sections 25 and 26 of the Federal-Provincial Fiscal Arrangements Regulations — fiscal stabilization payments and income tax payments under tax collection agreements, that are shown in that fiscal year to have been made in relation to each previous fiscal year within the period beginning on April 1, 1994 and ending on March 31, 2009 under the Act, these Regulations, the Federal-Provincial Fiscal Arrangements Regulations, the Fiscal Equalization Payments Regulations, 1999, the Tax Collection Agreements and Federal Post-Secondary Education and Health Contributions Regulations, 1987 and the tax collection agreements; and
(b) the amount of any overpayment that is shown in that fiscal year to have been made in relation to that fiscal year of fiscal equalization payments, fiscal stabilization payments and income tax payments under tax collection agreements.
(2) On the request of a province, the Minister may not, during a fiscal year, recover from the province any amount of the net aggregrate of overpayments, as calculated under subsection (1), that is more than
(a) in the case of the fiscal year that began on April 1, 1999, $105 per capita of the population of that province for that fiscal year;
(b) in the case of the fiscal year that begins on April 1, 2000, $110 per capita of the population of that province for that fiscal year;
(c) in the case of the fiscal year that begins on April 1, 2001, $115 per capita of the population of that province for that fiscal year;
(d) in the case of the fiscal year that begins on April 1, 2002, $120 per capita of the population of that province for that fiscal year;
(e) in the case of the fiscal year that begins on April 1, 2003, $125 per capita of the population of that province for that fiscal year; and
(f) in the case of fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2009, $120 per capita of the population of that province for that fiscal year.
(3) The recovery from a province of any outstanding balance of the net aggregate of overpayments that remains after subtracting the amount recovered during the fiscal year in accordance with the limit described in subsection (2), is to be deferred until the following fiscal year. The Minister shall take that balance into account in that following fiscal year in calculating for that province for that following fiscal year the net total of all overpayments and underpayments referred to in paragraph (1)(a).
(4) Despite subsections (2) and (3), any portion of that deferred outstanding balance of the net aggregate of overpayments that has not been recovered from the province by the end of the second fiscal year after the fiscal year during which recoveries of those overpayments were first made under subsection (2) is to be recovered during the fiscal year that immediately follows that second fiscal year. The Minister shall not take that portion into account in calculating the net aggregate of overpayments to be recovered from the province in relation to that immediately following fiscal year.
- SOR/2005-54, s. 2
24.01 The manner for a province to make a request referred to in subsection 4.2(1) of the Act is in writing to the Minister.
- SOR/2005-54, s. 3
24.02 The prescribed amounts referred to in subsection 4.2(2) of the Act are equal monthly amounts required to repay the payment under subsection 4.2(1) of the Act over the period beginning on April 1, 2006 and ending on March 31, 2016.
- SOR/2005-54, s. 4
PART 5Deferral of Recovery of Equalization Payments as a Result of Methodological Revision of Data
24.1 (1) Despite any other provision of these Regulations, the Minister shall recover the amount of any overpayment in respect of fiscal equalization from a province for the fiscal years beginning April 1, 1999, April 1, 2000, April 1, 2001 and April 1, 2002 — including any overpayment arising from the calculations described in subsection (2) for the fiscal year beginning April 1, 2002 — resulting from a methodological revision of data which has occurred before the coming into force of this Part.
(2) Where, after a methodological revision of data, the calculation described in subsection (3) for a province results in a positive amount, the residential net capital stock data that was produced before the implementation of the methodological revision shall be used in calculating the interim estimates for the fiscal year beginning April 1, 2002 in accordance with subparagraphs 8(1)(a)(i) and (ii) for that province.
(3) The amount of an equalization overpayment resulting from a methodological revision of data, for a province, is the amount by which
(a) the estimate of fiscal equalization for a fiscal year made in accordance with paragraph 8(1)(a) based on the residential net capital stock data before the implementation of the methodological revision
exceeds
(b) the estimate of the fiscal equalization for that fiscal year made in accordance with paragraph 8(1)(a) based on the residential net capital stock data immediately after the implementation of the methodological revision.
(4) The overpayment shall be recovered in equal monthly installments during the period beginning on April 1, 2003 and ending on March 31, 2008.
(5) If the amount to be recovered from a province as determined under subsections (1) to (4) during a fiscal year plus the amount to be recovered from the province during the same fiscal year in accordance with section 24 exceeds the limit set out in subsection 24(2) of amounts that may be recovered from a province during a fiscal year, the amount to be recovered from that province in that fiscal year under this Part shall be reduced by the amount in excess of that limit.
(6) The recovery of any balance outstanding after the adjustments referred to in subsection (5) have been made shall be deferred to the next fiscal year.
(7) Despite subsections (5) and (6), any balance that remains outstanding on April 1, 2007 as a result of the application of those subsections shall be recovered in equal monthly installments during the period beginning on that day and ending on March 31, 2008.
(8) If methodological revisions of data, which occur after the coming into force of this Part and before March 1, 2003, result in additional overpayments to one or more provinces,
(a) the amount to be recovered from a province that has previously received an overpayment shall be adjusted by adding the amount of the additional overpayments affecting that province; and
(b) in the case of a province that has not previously received an overpayment, the additional overpayments affecting that province shall be recovered in accordance with this Part.
(9) If methodological revisions of data, which occur after the coming into force of this Part and before March 1, 2003, have the effect of reducing an overpayment, the amount to be recovered from the province shall be adjusted accordingly.
(10) Subsections (4) to (7) shall continue to apply despite any adjustments to the amount to be recovered as a result of subsection (8) or (9).
(11) The definitions in this subsection apply in this Part.
- methodological revision of data
methodological revision of data means a revision of residential net capital stock data that is the result of a planned research and development programme to improve a statistical methodology but not the result of data updates or benchmarking without a revision of the statistical methodology employed by Statistics Canada. (révision méthodologique des données)
- residential net capital stock data
residential net capital stock data means the residential net capital stock data referred to in the description of E in paragraph 6(3)(z). (données sur le stock net de capital résidentiel)
- SOR/2002-125, s. 1
PART 6Deferral of Recovery of Overpayments as a Result of the Revision of Census Data and Federal Income Tax Assessments
24.2 (1) Despite any other provision of these Regulations, a further estimate of the fiscal equalization and the Canada Health and Social Transfer payments from a province in respect of the fiscal years beginning April 1, 2000, April 1, 2001, April 1, 2002 and April 1, 2003 shall be made by the Minister by March 15, 2004 using the population of the province on June 1 of that fiscal year according to the 1996 Statistics Canada census.
(2) Any overpayment or underpayment as a result of the further estimate shall, as the case may be, be recovered from or paid to the province on the first and third working day following March 15, 2004.
(3) All subsequent interim estimates and final computation shall use the population of the province on June 1 of that fiscal year according to the 2001 Statistics Canada census as specified by
(a) in the case of fiscal equalization, paragraph 8(3)(c) of the Federal-Provincial Fiscal Arrangements Regulations for interim estimates and subsection 9(2) of those Regulations for final computation; and
(b) in the case of the Canada Health and Social Transfer, subsection 5(7) of the Canada Health and Social Transfer Regulations.
- SOR/2004-32, s. 1
24.3 (1) The Minister shall recover the amount of any overpayment referred to in subsection (2) in respect of fiscal equalization and the Canada Health and Social Transfer from a province resulting from
(a) the revision of the population of the province on June 1 of the fiscal year according to the 2001 Statistics Canada census, in respect of the fiscal years beginning April 1, 2000, April 1, 2001, April 1, 2002 and April 1, 2003; and
(b) 2002 federal individual income tax and 2002 corporate taxable income assessed as of December 31, 2003, in respect of the fiscal years beginning April 1, 2002 and April 1, 2003.
(2) The amount of the overpayment as of March 15, 2004 for a province is the total, if greater than $0, of the following amounts:
(a) the amount of the fiscal equalization overpayment under paragraph (1)(a) that,
(i) in the case of Newfoundland and Labrador, is $139,110,000,
(ii) in the case of Prince Edward Island, is $35,708,000,
(iii) in the case of Nova Scotia, is $109,298,000,
(iv) in the case of New Brunswick, is $59,393,000,
(v) in the case of Quebec, is $-69,207,000,
(vi) in the case of Manitoba, is $-123,609,000,
(vii) in the case of Saskatchewan, is $188,112,000, and
(viii) in the case of British Columbia, is $343,478,000,
(b) the amount of the Canada Health and Social Transfer overpayment under paragraph (1)(a) that,
(i) in the case of Newfoundland and Labrador, is $29,585,000,
(ii) in the case of Prince Edward Island, is $5,915,000,
(iii) in the case of Nova Scotia, is $26,149,000,
(iv) in the case of New Brunswick, is $15,465,000,
(v) in the case of Quebec, is $27,874,000,
(vi) in the case of Ontario, is $-85,025,000,
(vii) in the case of Manitoba, is $-9,381,000,
(viii) in the case of Saskatchewan, is $30,668,000,
(ix) in the case of Alberta, is $-16,704,000, and
(x) in the case of British Columbia, is $-22,762,000,
(c) the amount of the fiscal equalization overpayment under paragraph (1)(b) that,
(i) in the case of Newfoundland and Labrador, is $11,902,000,
(ii) in the case of Prince Edward Island, is $-14,257,000,
(iii) in the case of Nova Scotia, is $62,709,000,
(iv) in the case of New Brunswick, is $98,681,000,
(v) in the case of Quebec, is $1,143,311,000,
(vi) in the case of Manitoba, is $161,734,000,
(vii) in the case of Saskatchewan, is $-13,685,000, and
(viii) in the case of British Columbia, is $389,289,000, and
(d) the amount of the Canada Health and Social Transfer overpayment under paragraph (1)(b) that,
(i) in the case of Newfoundland and Labrador, is $8,767,000,
(ii) in the case of Prince Edward Island, is $2,162,000,
(iii) in the case of Nova Scotia, is $14,720,000,
(iv) in the case of New Brunswick, is $11,816,000,
(v) in the case of Quebec, is $117,415,000,
(vi) in the case of Ontario, is $-140,299,000,
(vii) in the case of Manitoba, is $18,231,000,
(viii) in the case of Saskatchewan, is $31,507,000,
(ix) in the case of Alberta, is $39,677,000, and
(x) in the case of British Columbia, is $-109,034,000.
(3) The overpayment shall be recovered in equal monthly instalments during the period beginning on April 1, 2006 and ending on March 31, 2016.
- SOR/2004-32, s. 1
- SOR/2004-83, s. 1
- SOR/2005-54, s. 5
24.4 (1) If the amounts to be recovered from a province exceed $120 per capita of the population of the province, the amount to be recovered under this Part for the fiscal year shall be reduced by the amount in excess of that limit.
(2) The recovery of any balance outstanding after the recoveries referred to in subsection (1) have been made shall be deferred to the next fiscal year.
(3) Any balance that remains outstanding on April 1, 2016 shall be recovered during the period beginning on April 1, 2016 and ending on March 31, 2017.
- SOR/2004-32, s. 1
- SOR/2004-83, s. 2
- SOR/2005-54, ss. 6, 7
Coming into Force
25 These Regulations come into force on March 15, 2000.
- Date modified: