Federal-Provincial Fiscal Arrangements Regulations, 1999
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.
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