Federal-Provincial Fiscal Arrangements Regulations, 2007

9.1 (1) In determining the revenues described in paragraphs 4(1)(a) and 7(1)(a) in respect of Manitoba and Ontario for a fiscal year, the Minister shall not reduce those revenues by the amount of any recoveries from those provinces in respect of overpayments of capital gains taxes pursuant to a tax collection agreement.

(2) In determining the revenues described in paragraphs 4(1)(e) and 7(1)(l) to (w) in respect of a province for a fiscal year, the Minister may adjust the amount set out in the certificate by adding or deducting the amount of any expense, subsidy, rebate or tax reduction incurred or granted by the government of that province in relation to that revenue source, if that addition or reduction is necessary to ensure that revenues are calculated consistently for all provinces.

(3) In determining the revenues described in paragraphs 7(1)(a) and (z) in respect of a province for a fiscal year, the Minister may deduct the amount of any refundable income tax credit that the province grants in favour of a taxpayer for the fiscal year in relation to those revenues, as determined by the Minister, up to a maximum equal to the amount of the taxpayer’s tax payable that is included in the revenue for paragraph 7(1)(a) set out in the certificate, from

• (a) the amount set out in the certificate for the revenue described in paragraph 7(1)(a); or

• (b) if the refundable income tax credit relates to property tax, the amount set out in the certificate for the revenue described in paragraph 7(1)(z).

(4) In determining the revenues described in paragraph 7(1)(c) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the part of that revenue source described in subparagraph 7(1)(c)(ii).

(5) In determining the revenues described in paragraph 7(1)(z.4) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the parts of that revenue source described in clauses 7(1)(z.4)(i)(A) and (ii)(A).

(6) In determining the revenues described in paragraph 7(1)(b) in respect of a province for a fiscal year, the Minister may

• (a) deduct from the amount set out in the certificate the amount of any rebate, credit or tax reduction in relation to that revenue, or its components, that the province, or a local government, granted in favour of a taxpayer for the fiscal year, as determined by Statistics Canada, or, if Statistics Canada does not make the determination, as determined by the Minister, up to a maximum that reduces to zero the amount of the taxpayer’s tax that is included in the revenue source; or

• (b) if the province or a local government applies a rebate, credit or tax reduction against the actual or estimated liability of the taxpayer for another tax that it imposes, deduct the amount of that rebate, credit or tax reduction, up to a maximum that reduces the taxpayer’s liability for that other tax to zero, from the amount that would otherwise be determined for the revenue source that includes that other tax.