Federal-Provincial Fiscal Arrangements Regulations, 1999

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.