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 a specified Yukon aboriginal government, the Minister determines, under subparagraph 4.2(a)(iii) of the Act, that the gross expenditure base of Yukon is to be adjusted by the amount determined by the following formula, the adjustment shall be applied on a non-cumulative basis for 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 amount of tax, determined in accordance with the agreement, that is foregone by the Government of Yukon for the taxation year that is two years prior to the fiscal year for which the territorial formula financing payment for Yukon is being calculated, and
- B
- is the average difference — for the taxation years that are two, three and four years prior to the fiscal year for which the territorial formula financing payment for Yukon is being calculated — between the yield for Yukon revenues derived from personal income, net of federal and Yukon territorial personal income tax assessed in respect of Yukon residents, when it is calculated
(a) without taking into account the specified Yukon aboriginal government’s federal tax abatement and territorial tax credit, and
(b) taking into account that abatement and that credit.
(2) Only the adjustment made in the fourth fiscal year is subject to escalation under the population adjusted gross expenditure escalator.
- SOR/2009-327, s. 7
- Date modified: