Federal-Provincial Fiscal Arrangements Regulations, 1999
8 (1) For every fiscal year in the fiscal arrangements period,
(a) an estimate, in accordance with subsection (3), of the amount of any fiscal equalization payment that is payable under the Act to a province for the fiscal year shall be made by the Minister
(i) before April 16 of that fiscal year,
(ii) during the period beginning on the first day of September and ending on the 12th day of October of that fiscal year,
(iii) during the period beginning on the 12th day of January and ending on
(A) March 15, 2000, if that fiscal year ends on March 31, 2000, and
(B) the last day of February of that fiscal year, in any other case,
(iv) during the period beginning on the first day of September and ending on the 12th day of October of the first fiscal year after that fiscal year,
(v) during the period beginning on the 12th day of January and ending on the last day of February of the first fiscal year after that fiscal year,
(vi) during the period beginning on the first day of September and ending on the 12th day of October of the second fiscal year after that fiscal year, and
(vii) during the period beginning on the 12th day of January and ending on the last day of February of the second fiscal year after the end of that fiscal year; and
(b) if the Minister believes that there is new information available that would have a significant effect on the amount of the fiscal equalization payment that is payable under the Act to one or more provinces, the Minister may replace an estimate referred to in paragraph (a) by another estimate made
(i) during the second quarter of that fiscal year,
(ii) during March of that fiscal year, and
(iii) during any period, other than a period specified in paragraph (a), that begins on the first day of the final month of a quarter after the end of that fiscal year and ends on the 12th day of the next quarter, if the final computation referred to in subsection 9(1) has not been made.
(2) If an estimate
(a) made under subparagraph (1)(a)(i) or the Fiscal Equalization Payment Regulations, 1999 indicates that a fiscal equalization payment is payable to a province for a fiscal year, the Minister shall pay to the province, on account of the final payment for that fiscal year, an amount equal to one twenty-fourth of the amount so estimated on the first and third working days after the 15th calendar day of each month in that fiscal year;
(b) made under subparagraph (1)(a)(ii) or (iii) or (b)(i) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised, the Minister shall
(i) in the case of an amount that remains payable to the province, adjust the remaining payments referred to in paragraph (a) for that fiscal year in accordance with the new estimate, beginning with the first payment after the date of that estimate, and
(ii) in the case of an overpayment that has been made to the province, recover the amount of that overpayment before the end of the fiscal year;
(c) made under subparagraph (1)(b)(ii) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised, the Minister shall
(i) in the case of an amount that remains payable to the province, pay that amount, and
(ii) in the case of an overpayment that has been made,
(A) recover the amount of that overpayment in that month, or
(B) on the the province’s request, recover the overpayment in equal monthly instalments in the next fiscal year; and
(d) made under subparagraph (1)(a)(iv), (v), (vi) or (vii) or (b)(iii) indicates that the amounts payable to the province under the immediately preceding estimate for that fiscal year should be revised because
(i) an amount remains payable to the province, the Minister shall
(A) in the case of an estimate made under any of those subparagraphs other than (1)(a)(v) or (vii), pay that amount, and
(B) in the case of an estimate made under either subparagraph (1)(a)(v) or (vii), pay that amount minus any amount that the Minister, during the month of March immediately following the period referred to in subparagraph (1)(a)(v) or (vii), determines to be owing by the province to Canada as a result of an overpayment made by Canada under a tax collection agreement entered into with the province under Part III of the Act, and
(ii) an overpayment has been made to the province, the Minister shall, subject to section 24, recover the amount of that overpayment in the month during which the estimate was made or in the next following month, but in the case of an estimate made
(A) under subparagraph (1)(a)(iv) or (vi) or (b)(iii), the Minister may, on the province’s request, recover that overpayment in equal monthly instalments in the remaining months of that fiscal year during which the estimate was made, and
(B) under subparagraph (1)(a)(v) or (vii), the Minister may,
(I) on the province’s request, recover that overpayment in equal monthly instalments in the next following fiscal year, or
(II) recover any amount that remains after setting off from the amount of that overpayment any amount that the Minister, during the month of March immediately following the period referred to in that subparagraph, determines to be owing by Canada to the province as a result of an underpayment made by Canada under a tax collection agreement entered into with the province under Part III of the Act.
(3) Despite anything in these Regulations, for the purpose of determining the advances on account, and subsequent adjustments, that may be made in relation to the fiscal equalization payments that apply to a province for a fiscal year under subsections (1) and (2),
(a) the revenue to be equalized from a revenue source for all the provinces for the fiscal year shall be calculated on the basis of the information that is available to the Minister at the time the estimate is made;
(b) the year to be used in determining the revenue base for a revenue source for the fiscal year shall be the latest year for which representative information is available;
(c) the population of a province for the fiscal year shall be the population as estimated by
(i) in the case of an estimate under subparagraph (1)(a)(i) or (ii), the Minister, on the basis of population statistics provided by the Chief Statistician of Canada, and
(ii) in the case of an estimate under any other subparagraph of subsection (1), the Chief Statistician of Canada;
(d) the revenue base for the province of each revenue source referred to in paragraphs (a), (d), (e), (f), (h), (j), (k), (z.2) and (z.3) of the definition revenue source in subsection 4(2) of the Act for the fiscal year may be replaced by the product of
(i) the aggregate, over the 10 provinces, of the revenue base for that revenue source for the year referred to in paragraph (b), and
(ii) the product of the provincial share of that revenue base for that revenue source for that year and a fraction whose
(A) numerator is one plus another fraction whose numerator is the provincial percentage of the population of all 10 provinces for the fiscal year and whose denominator is that percentage for the year referred to in paragraph (b), and
(B) the denominator that is two; and
(e) if the year that is used for the revenue base for a revenue source in an interim estimate under subsection (1) is an earlier year than the one that is to be used in the final computation for a fiscal year referred to in to subsection 9(1), the Minister may adjust the provincial revenue base to take into account economic factors or trends that could bring about a significant change in the provincial share of that revenue base between the year that is used for that interim estimate and the year that is to be used for the final computation for that fiscal year.
(4) For the purposes of paragraphs (3)(d) and (e), the provincial share of a revenue base for a revenue source for a fiscal year is a fraction whose
(a) numerator is the revenue base for that revenue source for that fiscal year for the province; and
(b) denominator is the revenue base for that revenue source for that fiscal year for the 10 provinces.
(5) If an interim estimate referred to in subsection (1) indicates an overpayment to a province for a fiscal year, the Minister may, subject to subsection (2) and section 24, recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
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