Canada Health Transfer, Canada Social Transfer and Wait Times Reduction Transfer Regulations

Version of section 3 from 2007-09-18 to 2009-12-09:

  •  (1) For the purposes of section 24.7 of the Act, the relevant revenue bases for a province for a fiscal year shall be determined as follows:

    • (a) with respect to personal income taxes, by aggregating

      • (i) 75% of the assessed federal individual income tax applicable to the province for the taxation year ending in the fiscal year, as determined by the Minister of National Revenue, and

      • (ii) 25% of the assessed federal individual income tax applicable to the province for the taxation year beginning in the fiscal year, as determined by the Minister of National Revenue; and

    • (b) with respect to corporation income taxes, by aggregating

      • (i) 75% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that ends in the fiscal year, and

      • (ii) 25% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that begins in the fiscal year.

  • (2) For the purposes of clause 24.7(1)(b)(ii)(B) of the Act, the amount of equalization referred to in subparagraph 24.7(1)(b)(ii) of the Act shall be increased by the amount determined by the following formula, if subsection 4(6) of the Act as it read on May 13, 2004 applies in respect of a province for a fiscal year:

    P × [A × C/B]

    where

    P
    is the population of the province for the fiscal year;
    A
    is the average per capita yield in the provinces of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan for the revenue sources referred to in subsection 24.7(2) of the Act for the fiscal year;
    B
    is the average per capita yield in the provinces of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan for all revenue sources for the fiscal year, under subsection 4(1) of the Act as it read on May 13, 2004; and
    C
    is the amount by which
    • (a) the equalization payment for the province, determined in accordance with subsection 4(6) of the Act as it read on May 13, 2004, divided by the population of the province for that fiscal year

    exceeds

    • (b) the equalization payment for the province, determined in accordance with subsection 4(1) of the Act as it read on May 13, 2004, divided by the population of the province for that fiscal year.

  • (3) Subsection (2) expires at the time when the final computation under section 5 for the fiscal year 2004–2005 is completed.

  • (4) For the purposes of section 24.7 of the Act, the following expressions are defined in the following manner:

    national average rate of tax

    taux d’imposition national moyen

    national average rate of tax has the same meaning as in subsection 3.5(1) of the Act. (taux d’imposition national moyen)

    per capita national yield

    rendement national par habitant

    per capita national yield for a revenue source for a fiscal year is the quotient obtained by dividing the product of the national average rate of tax for that revenue source and the aggregate revenue base of all provinces for that revenue source for the fiscal year by the population of all provinces for that fiscal year. (rendement national par habitant)

    per capita yield

    rendement par habitant

    per capita yield in respect of a province for a revenue source for a fiscal year is the quotient obtained by dividing the product of the national average rate of tax for that revenue source and the province’s revenue base for that revenue source for the fiscal year by the population of the province for that fiscal year. (rendement par habitant)

  • SOR/2007-200, s. 1
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