Federal-Provincial Fiscal Arrangements Regulations, 2007
25 (1) If, following the conclusion of a personal income tax room sharing agreement between the Government of Yukon and the government of the Kwanlin Dun First Nation, the Minister determines, under subparagraph 4.2(a)(iii) of the Act, that the gross expenditure base of Yukon is to be adjusted by an amount equal to the amount determined by the following formula, the adjustment shall be applied on a non-cumulative basis in each of the second, third and fourth fiscal years following that in which the agreement was concluded:
A - (70% × B)
where
- A
- is equal to the remittances, made by the Government of Canada to the Kwanlin Dun First Nation under the agreement, for the taxation year in which the agreement was concluded, and
- B
- is the difference between the measured yield for Yukon revenues derived from personal income, net of federal and Yukon territorial personal income tax assessed in respect of Yukon residents for the fiscal year in which the agreement was concluded, when it is
(a) calculated without taking into account the Yukon First Nation federal tax abatement and the Yukon First Nation territorial tax credit for the Kwanlin Dun First Nation, and
(b) calculated taking into account those abatements and credits.
(2) Only the adjustment made in the fourth fiscal year is subject to escalation under the population adjusted gross expenditure escalator.
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