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Federal-Provincial Fiscal Arrangements Regulations, 1999

Version of section 6 from 2006-03-22 to 2007-12-12:

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 12^th 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

Date modified:: 2024-11-13

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Federal-Provincial Fiscal Arrangements Regulations, 1999