Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1982
SOR/83-784
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
Registration 1983-10-13
Regulations Respecting the Payments or Contributions that may be made Under Parts I To III and Parts V To VII of the Federal-Provincial Fiscal Arrangements and Established Programs Financing Act, 1977
P.C. 1983–3165 1983-10-13
Short Title
1 These Regulations may be cited as the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1982.
Interpretation
2 In these Regulations,
- Act
Act means the Federal-Provincial Fiscal Arrangements and Established Programs Financing Act, 1977; (Loi)
- fiscal arrangements period
fiscal arrangements period means the period beginning on April 1, 1982 and ending on March 31, 1987; (période des accords fiscaux)
- former Act
former Act means the Federal-Provincial Fiscal Arrangements Act, 1972; (ancienne loi)
- Minister
Minister means the Minister of Finance; (ministre)
- population of a province for a fiscal year
population of a province for a fiscal year means the population of a province for a fiscal year as determined by the Chief Statistician of Canada in accordance with section 4; (population d’une province pour une année financière)
- survey year
survey year means a calendar year in respect of which Statistics Canada has made a survey of the retail trade the results of which are issued in its publication entitled “Retail Commodity Survey”; (année d’enquête)
- taxation year
taxation year means a taxation year within the meaning of the Income Tax Act; (année d’imposition)
- working day
working day means a day on which employees of the Department of Finance, situated in Ottawa, are normally required to work in accordance with the Public Service Terms and Conditions of Employment Regulations. (jour ouvrable)
Application
3 Subject to section 27, these Regulations apply in respect of payments or contributions that may be made under any of Parts I to III and Parts V to VII of the Act in respect of a fiscal year in the fiscal arrangements period.
Determination of Population of a Province
4 Subject to paragraph 8(3)(c) and subsection 23(5), the population of a province for a fiscal year shall be determined,
(a) in the case of the fiscal year beginning on April 1, 1986, by the census taken by Statistics Canada in that fiscal year in accordance with the Statistics Act; and
(b) in the case of any other fiscal year, by the official estimate of the population of that province on the first day of June of that fiscal year as estimated by Statistics Canada and set out by the Chief Statistician of Canada in the certificate submitted to the Minister pursuant to subsection 9(2).
PART IFiscal Equalization Payments
Revenue Source
5 (1) For purposes of the Act and these Regulations, the expressions referred to in paragraphs (a) to (cc) of the definition revenue source in subsection 4(2) of the Act are defined as follows:
(a) personal income taxes referred to in paragraph (a) thereof means taxes imposed by a province on the income of individuals
(i) who are resident in the province on the last day of a taxation year, or
(ii) who, if not resident in the province on the last day of a taxation year, have business income earned in the province during the taxation year,
and includes a flat rate levy by a province on the income of individuals resident in the province but does not include universal pension plan levies on the income of individuals resident in the province;
(b) corporation income taxes, revenues derived from government business enterprises that are not included in any other paragraph of this definition, and revenues received from the Government of Canada pursuant to the Public Utilities Income Tax Transfer Act referred to in paragraph (b) thereof means
(i) taxes imposed by a province on the income of corporations earned in the province in a taxation year but does not include taxes referred to in paragraphs (p), (y) and (z),
(ii) remittances to a provincial government of profits of its own business enterprises, other than
(A) a liquor board, commission or authority,
(B) an enterprise engaged entirely or primarily in the marketing of oil or natural gas, and
(C) an enterprise, board, commission or authority engaged in the administration of a provincial lottery, and
(iii) revenues received by a province from the Government of Canada pursuant to the Public Utilities Income Tax Transfer Act;
(c) taxes on capital of corporations referred to in paragraph (b.1) thereof means taxes imposed by a province on the paid-up capital of a corporation;
(d) general and miscellaneous sales taxes and amusement taxes referred to in paragraph (c) thereof means taxes imposed by a province on final purchasers or users of goods and services that are not described elsewhere in this subsection and, for greater certainty, includes sales taxes on meals, hotel services, telecommunications and cable television;
(e) tobacco taxes referred to in paragraph (d) thereof means taxes imposed by a province on final purchasers of tobacco and tobacco products;
(f) motive fuel taxes derived from the sale of gasoline referred to in paragraph (e) thereof means taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, but does not include taxes referred to in subparagraph (ff)(ii);
(g) motive fuel taxes derived from the sale of diesel fuel referred to in paragraph (f) thereof means taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, but does not include taxes referred to in subparagraph (ff)(ii);
(h) non-commercial motor vehicle licensing revenues referred to in paragraph (g) thereof means revenues derived by a province from fees for
(i) drivers and chauffeurs licences, and
(ii) licences and registrations of passenger motor vehicles, motorcycles and mopeds,
and includes any other revenues derived by the province that are considered to be motor vehicle licensing revenues by Statistics Canada for the purposes of its annual publication entitled “Provincial Government Finance, Revenue and Expenditure”, other than commercial motor vehicle licensing revenues;
(i) commercial motor vehicle licensing revenues referred to in paragraph (h) thereof means revenues derived by a province from fees for licences and registrations of commercial motor vehicles and, for greater certainty, includes
(i) fees for licences and registration of trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,
(ii) public service and common carrier fees, and
(iii) revenues derived pursuant to reciprocity agreements with other provinces in respect of the licensing of commercial motor vehicles;
(j) alcoholic beverage revenues derived from the sale of spirits referred to in paragraph (i) thereof means revenues derived by a province from
(i) remittances to the provincial government of profits of its liquor board, commission or authority arising from sales of spirits,
(ii) a specific sales tax imposed by the province on the sale of spirits by its liquor board, commission or authority, and
(iii) fees for licences and permits for the privilege of distilling, purchasing or dispensing of spirits;
(k) alcoholic beverage revenues derived from the sale of wine referred to in paragraph (j) thereof means revenues derived by a province from
(i) remittances to the provincial government of profits of its liquor board, commission or authority arising from sales of wine,
(ii) a specific sales tax imposed by the province on the sale of wine by its liquor board, commission or authority, and
(iii) fees for licences and permits for the privilege of making, purchasing or dispensing of wine;
(l) alcoholic beverage revenues derived from the sale of beer referred to in paragraph (k) thereof means revenues derived by a province from
(i) remittances to the provincial government of profits of its liquor board, commission or authority arising from sales of beer,
(ii) a specific sales tax imposed by the province on the sale of beer by its liquor board, commission or authority, and
(iii) fees for licences and permits for the privilege of brewing, purchasing or dispensing of beer;
(m) hospital and medical care insurance premiums referred to in paragraph (l) thereof means taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance but does not include taxes referred to in paragraphs (a) and (cc);
(n) succession duties and gift taxes referred to in paragraph (m) thereof means taxes or duties imposed by a province on any legacy, succession or inheritance and on gifts inter vivos;
(o) race track taxes referred to in paragraph (n) thereof means taxes imposed by a province on amounts wagered on harness and running horse races;
(p) forestry revenues referred to in paragraph (o) thereof means revenues derived by a province from
(i) a specific tax imposed by the province on income from logging, and
(ii) royalties, licences, rentals or fees related to the exploitation of the forestry resources of the province;
(q) conventional new oil revenues referred to in paragraph (p) thereof means revenues derived by a province from the following separate revenue sources:
(i) new oil revenues, and
(ii) NORP oil revenues;
(r) conventional old oil revenues referred to in paragraph (p.1) thereof means the aggregate of
(i) the revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that are derived by the province from
(A) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, and
(C) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits, and
(ii) any other revenues attributable to oil from naturally occurring hydrocarbon deposits in the province that are derived by the province and are identifiable as oil revenues from naturally occurring hydrocarbon deposits,
less the amount of new oil revenues, NORP oil revenues, mined oil revenues and heavy oil revenues attributable to such oil;
(s) heavy oil revenues referred to in paragraph (p.2) thereof means the aggregate of
(i) the revenues attributable to oil from naturally occurring hydrocarbon deposits in a province having a density of 935 kg/m3 or greater that are derived by the province from
(A) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, and
(C) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits,
(ii) any other revenues attributable to oil from naturally occurring hydrocarbon deposits in the province having a density of 935 kg/m3 or greater that are derived by the province and are identifiable as oil revenues from naturally occurring hydrocarbon deposits, and
(iii) the amounts paid by the Government of Canada to the province in respect of oil produced in and exported out of Canada from the province;
(t) mined oil revenues referred to in paragraph (q) thereof means revenues derived by a province from a levy imposed by the province for the privilege of producing
(i) synthetic petroleum from oil sands or other naturally occurring hydrocarbon deposits, and
(ii) oil from the project that is subject to approval No. 2943 of the Energy Resources Conservation Board of the Province of Alberta;
(u) domestically sold natural gas revenues referred to in paragraph (r) thereof means the aggregate of
(i) the revenues attributable to gas production sold in Canada for consumption in Canada that are derived by a province from
(A) a levy imposed by the province for the privilege of producing gas or gas by-products from naturally occurring hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, and
(C) remittances to the provincial government of profits of its own business enterprises engaged entirely or primarily in the marketing of gas or gas by-products produced from naturally occurring hydrocarbon deposits, and
(ii) any other revenues attributable to gas production sold in Canada for consumption in Canada that are derived by the province and are identifiable as gas revenues from naturally occurring hydrocarbon deposits;
(v) exported natural gas revenues referred to in paragraph (s) thereof means the aggregate of
(i) the revenues attributable to gas production exported from Canada that are derived by a province from
(A) a levy imposed by the province for the privilege of producing gas or gas by-products from naturally occurring hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, and
(C) remittances to the provincial government of profits of its own business enterprises engaged entirely or primarily in the marketing of gas or gas by-products produced from naturally occurring hydrocarbon deposits, and
(ii) any other revenues attributable to gas production exported from Canada that are derived by the province and are identifiable as gas revenues from naturally occurring hydrocarbon deposits;
(w) sales of Crown leases and reservations on oil and natural gas lands referred to in paragraph (t) thereof means revenues derived by a province from the disposition in the province of leases, reservations or other rights in respect of Crown lands for the purpose of exploration or exploitation of the land for crude oil, gas from naturally occurring hydrocarbon deposits and gas by-products from naturally occurring hydrocarbon deposits;
(x) oil and gas revenues other than those described in paragraphs (p) to (t) referred to in paragraph (u) thereof means revenues derived by a province from the exploration, development and production of oil or gas from naturally occurring hydrocarbon deposits, gas by-products from naturally occurring hydrocarbon deposits and helium or other gaseous products from naturally occurring hydrocarbon deposits in the province other than revenues of a kind described in paragraphs (p) to (t) thereof and includes any oil or gas revenues of a kind that falls within the description of a revenue source described in any of paragraphs (q) to (v) of this subsection but that cannot be attributed only to that revenue source;
(y) metallic and non-metallic mineral revenues other than potash revenues referred to in paragraph (v) thereof means revenues derived by a province from the following separate revenue sources:
(i) iron revenues,
(ii) uranium revenues,
(iii) asbestos revenues,
(iv) coal revenues, and
(v) other metallic and non-metallic mineral revenues other than potash revenues;
(z) potash revenues referred to in paragraph (v.1) thereof means revenues derived by a province from
(i) a tax imposed by the province applying only to income from mining potash,
(ii) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining potash, and
(iii) royalties, licences, rentals or fees related to the exploration, development and production of potash;
(aa) water power rentals referred to in paragraph (w) thereof means revenues derived by a province from the right to use, or the use of, water resources of the province;
(bb) insurance premium taxes referred to in paragraph (x) thereof means taxes imposed by a province on insurance premiums of insurance companies;
(cc) payroll taxes referred to in paragraph (y) thereof means taxes imposed by a province on the payroll of employers;
(dd) provincial and local government property taxes referred to in paragraph (z) thereof means
(i) taxes imposed by a province or local government on real property, on the occupant of real property in respect of that property where the owner of that property is exempt from property taxes, and on a person occupying or using real property for the purpose of carrying on business where such taxes are computed by reference to the property so occupied or used by him, and
(ii) grants in lieu of a tax described in subparagraph (i) received by a provincial or local government in respect of property that is exempt from taxation, other than property that is owned by Her Majesty in right of a province and occupied by a provincial government department or owned by a local government;
(ee) lottery revenues referred to in paragraph (aa) thereof means revenues derived by a province from
(i) remittances to the provincial government of profits of its own business enterprises, boards, commissions or authorities that carry on a provincial lottery or of business enterprises, boards, commissions or authorities jointly owned by the province and one or more other provinces that carry on a provincial lottery,
(ii) profits paid to the provincial government by a business enterprise, a board, a commission or an authority of another province that carries on a provincial lottery, and
(iii) profits paid to the provincial government by a lottery carried on by the Government of Canada;
(ff) miscellaneous provincial taxes and revenues including miscellaneous revenues from natural resources, concessions and franchises, sales of provincial goods and services and local government revenues from sales of goods and services and miscellaneous local government taxes referred to in paragraph (bb) thereof means revenues derived from sales of goods and services by local governments and local government taxes, including interest charges, fines and penalties imposed in respect of such taxes, other than the revenues described in paragraph (dd), and revenues derived by a province from any source other than a source described elsewhere in this subsection and, for greater certainty, includes
(i) land transfer taxes,
(ii) taxes on the sales of liquid petroleum gases,
(iii) revenues derived by a province from natural resources, other than the revenues described in paragraphs (p) to (aa), but including revenues derived from fish and game licences,
(iv) revenues derived by a province from concessions and franchises and other privileges, other than those described elsewhere in this subsection,
(v) revenues derived by a province from licences and permits other than the revenues described in paragraphs (h) to (l) and subparagraph (iii),
(vi) revenues derived from sale of goods and services by the province and revenues classified by Statistics Canada as institutional sales of goods and services other than taxes included in such revenues,
(vii) revenues derived from the imposition by the province of interest charges, fines and penalties in respect of taxes and any other charges and from the imposition by the province of any other interest charges, fines and penalties other than those imposed in respect of the revenue sources described in subparagraphs (x) to (xvi),
(viii) crop insurance premiums, and
(ix) other miscellaneous revenue derived from the province’s own sources,
but does not include
(x) contributions derived with respect to workmen’s compensation,
(xi) contributions derived with respect to vacation-with-pay,
(xii) contributions derived with respect to a universal pension plan,
(xiii) revenues derived with respect to intergovernmental sales of goods and services including the sale of manpower training services to the Government of Canada,
(xiv) returns, including interest and dividends, on investments, other than remittances from a provincially-owned enterprise,
(xv) contributions derived with respect to non-trusteed public service and teachers’ pension plans, and
(xvi) general or specific purpose transfer payments received from other governments; and
(gg) revenues of the Government of Canada from any of the sources referred to in this definition that are shared by Canada with the provinces, other than revenue shared under the Public Utilities Income Tax Transfer Act referred to in paragraph (cc) thereof means revenues derived by a province from the following separate revenue sources:
(i) the provincial share of the tax on 1971 undistributed income on hand,
(ii) the provincial share of offshore minerals revenue, and
(iii) the provincial share of other shared revenue.
(2) For the purposes of subsection (1),
- asbestos revenues
asbestos revenues means revenues derived by a province from
(a) a tax imposed by the province applying only to income from mining asbestos,
(b) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining asbestos, and
(c) royalties, licences, rentals or fees related to the exploration, development and production of asbestos; (revenus provenant de l’amiante)
- coal revenues
coal revenues means revenues derived by a province from
(a) a tax imposed by the province applying only to income from mining coal,
(b) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining coal, and
(c) royalties, licences, rentals or fees related to the exploration, development and production of coal; (revenus provenant du charbon)
- iron revenues
iron revenues means revenues derived by a province from
(a) a tax imposed by the province applying only to income from mining iron,
(b) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining iron, and
(c) royalties, licences, rentals or fees related to the exploration, development and production of iron; (revenus provenant du fer)
- new oil revenues
new oil revenues means the aggregate of
(a) the revenues attributable to special old petroleum that are derived by a province from
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the asssessed or estimated value of oil reserves, and
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits, and
(b) any other revenues attributable to special old petroleum that are derived by the province and that are identifiable as oil revenues from naturally occurring hydrocarbon deposits,
less the amount of mined oil revenues and heavy oil revenues attributable to special old petroleum; (revenus tirés du nouveau pétrole)
- NORP oil revenues
NORP oil revenues means the aggregate of
(a) the revenues attributable to conventional new petroleum or Dodsland Vicking Sand Pool petroleum that are derived by a province from
(i) a levy imposed by the province for the privilege of producing oil from naturally occurring hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, and
(iii) a tax imposed by the province that is based on the differential between different sets of prices per barrel for oil produced from naturally occurring hydrocarbon deposits, and
(b) any other revenues attributable to conventional new petroleum or Dodsland Viking Sand Pool petroleum that are derived by the province and that are identifiable as oil revenues from naturally occurring hydrocarbon deposits,
less the amount of mined oil revenues and heavy oil revenues attributable to conventional new petroleum or Dodsland Viking Sand Pool petroleum; (revenus tirés du pétrole désigné P.R.N.P.)
- other metallic and non-metallic mineral revenues other than potash revenues
other metallic and non-metallic mineral revenues other than potash revenues means revenues derived by a province from
(a) a tax imposed by the province applying only to income from mining a mineral other than oil, gas, clay, cement, lime, iron, uranium, asbestos, coal, potash and elemental sulphur,
(b) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining minerals other than oil, gas, clay, cement, lime, iron, uranium, asbestos, coal, potash and elemental sulphur, and
(c) royalties, licences, rentals or fees related to the exploration, development and production of minerals other than oil, gas, clay, cement, lime, iron, uranium, asbestos, coal, potash and elemental sulphur; (autres revenus provenant des minerais métalliques et non métalliques, sauf les revenus provenant de la potasse)
- provincial share of offshore minerals revenue
provincial share of offshore minerals revenue, in relation to a province, means revenue received by the province from the Government of Canada pursuant to an agreement on offshore resources; (part d’une province des revenus tirés des ressources minérales extracôtières)
- provincial share of other shared revenue
provincial share of other shared revenue, in relation to a province, means revenue from any of the revenue sources referred to in section 4 of the Act that is shared by Canada with the province but does not include the provincial share of the tax on 1971 undistributed income on hand, the provincial share of offshore minerals revenue and the revenue referred to in subparagraphs 5(1)(s)(iii) and (ee)(iii); (part d’une province des autres revenus partagés)
- provincial share of the tax on 1971 undistributed income on hand
provincial share of the tax on 1971 undistributed income on hand, in relation to a province, means revenue received by the province from the Government of Canada pursuant to Part V of the Act; (part d’une province de l’impôt sur le revenu en main non réparti en 1971)
- uranium revenues
uranium revenues means revenues derived by a province from
(a) a tax imposed by the province applying only to income from mining uranium,
(b) that portion of a tax imposed by the province applying only to income from mining that is attributable to mining uranium, and
(c) royalties, licences, rentals and fees related to the exploration, development or production of uranium. (revenus provenant de l’uranium)
(3) For the purposes of this section,
(a) the expressions oil, gas and hydrocarbon have the same meaning as in the Energy Administration Act; and
(b) the expressions conventional new petroleum, Dodsland Viking Sand Pool petroleum and special old petroleum have the same meaning as in the Petroleum Compensation Program Regulations.
(4) For greater certainty,
(a) each revenue source described in paragraphs (a) to (y), (aa) and (cc) of the definition revenue source in subsection 4(2) of the Act and that part of the revenue sources described in paragraphs (z) and (bb) of that definition that is provincial revenue is that revenue source as classified and determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Government Finance, Revenue and Expenditure”; and
(b) that part of the revenue source described in paragraphs (z) and (bb) of the definition revenue source in subsection 4(2) of the Act that is local government revenue is that revenue source as classified and determined by Statistics Canada for the purposes of its annual publication entitled “Local Government Finance, Revenue and Expenditures, Assets and Liabilities”.
(5) In computing the revenue from a revenue source for a province for a fiscal year the Minister may deduct from the amount set out by the Chief Statistician of Canada in the certificate submitted to the Minister pursuant to subsection 9(2)
(a) the amount of any rebate, credit or reduction in respect thereof or in respect of the components thereof credited by a province or a local government to a provincial or local government taxpayer for that fiscal year, as determined by Statistics Canada or, where any such determination is not made by Statistics Canada, as determined by the Minister, and for the purposes of this paragraph, where a rebate, credit or reduction in respect of tax imposed by the province or local government is applied against the actual or estimated liability of the taxpayer in respect of another tax imposed by the province or local government, the amount of the rebate, credit or reduction may be applied against the revenue otherwise determined for that revenue source that includes that other provincial or local government tax but the amount deducted from a revenue source in respect of any rebate, credit or reduction shall not include any amount that reduces to below zero the amount of a taxpayer’s tax that is included in that revenue source;
(b) the amount of any revenue of a province that it receives from a local government or any revenue of a local government that it receives from a province if the effect of including such revenue would be that it would be included twice in the aggregate of all revenue to be equalized for all sources included in the definition revenue source in subsection 4(2) of the Act; and
(c) the additional amount referred to in paragraph 35(d) of the Act derived by the province for that fiscal year, as determined by the Minister.
Revenue Base
6 (1) For the purposes of clause (3)(a)(i)(A), the simulated yield of personal income taxes in the province in a taxation year ending in a fiscal year shall be determined by means of the personal income tax micro-simulation model of the Department of National Revenue, according to the following steps:
(a) aggregate, for each federal income tax bracket, the amounts of provincial income tax for all individuals in each federal income tax bracket in the province as determined for each individual,
(i) in the case of each of the provinces other than the Province of Quebec, by adding surtaxes to and subtracting any rebate, credit or reduction given in respect of provincial personal income taxes from the product of the provincial income tax rates and the assessed federal individual income tax for that individual, and
(ii) in the case of the Province of Quebec, by multiplying the average tax rate of the province for the federal income tax bracket by the taxable income of that individual as determined pursuant to the provincial tax legislation and by subtracting therefrom an amount equal to 16.5 per cent of the assessed federal individual income tax for that individual,
except that where the total amount so determined for an individual is less than zero, the amount included in the aggregate shall be zero;
(b) aggregate the total amounts for each federal income tax bracket determined pursuant to paragraph (a) for the 10 provinces;
(c) divide the amounts determined pursuant to paragraph (b) by the aggregate for the 10 provinces of the assessed federal individual income tax for all individuals in each federal income tax bracket;
(d) multiply the rates determined pursuant to paragraph (c) by the assessed federal individual income tax for all individuals in each federal income tax bracket in the province; and
(e) aggregate the amounts determined pursuant to paragraph (d) for all federal income tax brackets in the province.
(2) For the purposes of subsection (1), each federal income tax bracket, in respect of a taxation year means, each range of taxable income described in a paragraph of the subsection of section 117 of the Income Tax Act that is applicable to the taxation year, as adjusted by section 117.1 of that Act.
(3) The expression revenue base for a revenue source for a province for a fiscal year, as defined in subsection 4(2) of the Act, means,
(a) in the case of personal income taxes, the aggregate of
(i) the fraction expressed as a percentage for the province, of which
(A) the numerator is the simulated yield of personal income taxes in the province in the taxation year ending in the fiscal year determined pursuant to subsection (1), and
(B) the denominator is the aggregate for the 10 provinces of the amount determined pursuant to clause (A), and
(ii) the fraction expressed as a percentage for the province, of which
(A) the numerator is the aggregate for all individuals in the province of the assessed federal individual income tax for the taxation year ending in the fiscal year as determined for each individual pursuant to paragraph (4)(a), and
(B) the denominator is the aggregate for the 10 provinces of the amount determined pursuant to clause (A),
minus
(iii) the fraction expressed as a percentage for the province, of which
(A) the numerator is the aggregate for all individuals in the province of the assessed federal individual income tax for the taxation year ending in the fiscal year, determined for each individual pursuant to paragraph (4)(a), as simulated by the personal income tax micro-simulation model of the Department of National Revenue, and
(B) the denominator is the aggregate for the 10 provinces of the amount determined pursuant to clause (A);
(b) in the case of the revenue source described in paragraph (b) of the definition revenue source in subsection 4(2) of the Act, the aggregate of
(i) the product obtained when the portion of the aggregate of corporation profits for Canada, before taxes, prior to deducting the aggregate of corporation losses, for the calendar year ending in the fiscal year as determined by Statistics Canada for the purposes of its annual publication entitled “National Income and Expenditure Accounts”, that is attributable to the 10 provinces, is multiplied by a fraction, of which
(A) the numerator is the allocated corporation taxable income applicable to the province for the fiscal year computed pursuant to paragraph (4)(b), and
(B) the denominator is the aggregate for the 10 provinces of the numerators determined under clause (A), and
(ii) the product obtained when the fraction, of which
(A) the numerator is the total profits attributable to the province for the calendar year ending in the fiscal year of all the business enterprises having a profit applicable to that calendar year and owned to the extent of 90 per cent or more by that province or by that province and one or more other provinces, excluding
(I) the profits for that calendar year of a liquor board, commission or authority,
(II) the profits for that calendar year of an enterprise engaged entirely or primarily in the marketing of oil or natural gas,
(III) the profits for that calendar year of an enterprise carrying on a provincial lottery, and
(IV) the amount, if any, for any such business enterprise having a profit applicable to that calendar year, of losses accumulated in the five calendar years previous to that calendar year to the extent that such losses exceed the portion that could have been excluded, pursuant to this subclause, in respect of previous calendar years and do not exceed the total profits for that calendar year of such business enterprise, but no account shall be taken of profits or losses for years prior to the calendar year beginning January 1, 1972, and
(B) the denominator is the aggregate for the 10 provinces of the profits for the calendar year as determined pursuant to clause (A),
is multiplied by the aggregate for the 10 provinces for the calendar year ending in the fiscal year of the amount determined pursuant to clause (A) before any amount determined pursuant to subclause (A)(IV) is excluded, all as determined on the basis of data prepared by Statistics Canada for purposes of its annual publication entitled “Provincial Government Enterprise Finance”;
(c) in the case of taxes on the capital of corporations, the aggregate of
(i) the taxable paid-up capital employed in the province in the year of all corporations classified by Statistics Canada as included in
(A) the total agriculture, forestry and fishing industry,
(B) the total mining industry,
(C) the total manufacturing industry,
(D) the total construction industry,
(E) the total utilities industry,
(F) the total wholesale trade industry,
(G) the total retail trade industry,
(H) the total services industry, and
(I) the total finance industry excluding the total deposit accepting institutions industry, and
(ii) 2.5 times the total equity employed in the province in the year of all corporations classified by Statistics Canada in the total deposit-accepting institutions industry;
(d) in the case of general and miscellaneous sales taxes and amusement taxes, the amount that represents the total value of sales at retail locations in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its monthly publication “Retail Trade”, minus an amount equal to the aggregate of
(i) the value of the sales of food in the province calculated in accordance with the formula
(A × B × P) ÷ C
where
(A) “A” is the aggregate of
(I) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in combination stores in the calendar year ending in the fiscal year is multiplied by 0.83,
(II) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in grocery, confectionary and sundry stores in the calendar year ending in the fiscal year is multiplied by 0.638,
(III) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in all other food stores in the calendar year ending in the fiscal year is multiplied by 0.77,
(IV) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in department stores in the calendar year ending in the fiscal year is multiplied by 0.066,
(V) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in general merchandise stores in the calendar year ending in the fiscal year is multiplied by 0.054, and
(VI) the product obtained when the aggregate for the 10 provinces of the amount of retail sales in general stores in the calendar year ending in the fiscal year is multiplied by 0.275,
where such amounts of retail sales are as determined by Statistics Canada for the purposes of its monthly publication entitled “Retail Trade”,
(B) “B” is a fraction, of which
(I) the numerator is the product obtained when the average family expenditure on food prepared at home in the province for the calendar year ending in the fiscal year is multiplied by the average family size in the 10 provinces for that calendar year, and
(II) the denominator is the product obtained when the average family expenditure on food prepared at home in the 10 provinces for the calendar year ending in the fiscal year is multiplied by the average family size in the province for that calendar year,
where the average family expenditure on food prepared at home in each province and the average family size in each province are as determined by Statistics Canada for the purposes of its publication entitled “Family Expenditure in Canada”
(C) “P” means the population in the province for the fiscal year, and
(D) “C” means the aggregate for the 10 provinces of the product obtained when “B” determined pursuant to clause (B) is multiplied by the population in the province,
(ii) the value of retail sales for children’s clothing and footwear, which value is equal to,
(A) where the calendar year ending in the fiscal year is a survey year, an amount equal to the product obtained when the total amount for the 10 provinces of the retail sales of children’s clothing and footwear, as determined by Statistics Canada for the survey year, is multiplied by a fraction, of which the numerator is the population of the province that is under 15 years of age for that fiscal year and the denominator is the population of the 10 provinces that is under 15 years of age for that fiscal year, and
(B) where the calendar year ending in the fiscal year is not a survey year, an amount calculated in accordance with the formula
S × A × B
where
(I) “S” is the total value of sales at retail locations in the 10 provinces in the calendar year ending in the fiscal year as determined by Statistics Canada for the purposes of its monthly publication entitled “Retail Trade”;
(II) “A” is a fraction, of which the numerator is the population of the province that is under 15 years of age and the denominator is the population of the 10 provinces that is under 15 years of age for that fiscal year, and
(III) “B” is a fraction, of which the numerator is the aggregate for the 10 provinces of the amount of retail sales of children’s clothing and footwear and the denominator is the aggregate for the 10 provinces of the amount of total sales at retail locations, as determined by Statistics Canada for the last preceding survey year,
(iii) the value of the sales of tobacco in the province, which value is equal to an amount equal to the product obtained when
(A) one two-hundreth of the number of cigarettes sold in the province in the fiscal year as determined pursuant to paragraph (e)
is multiplied by
(B) the average for the fiscal year of the average quarterly retail price of a carton of 200 cigarettes in the largest city in the province as determined by Statistics Canada for the purposes of its publication entitled “Consumer Prices and Price Indexes”, and
(iv) the value of the sales of motor vehicle fuel, which value is equal to an amount equal to the product obtained when
(A) one thousand times the aggregate of the number of cubic metres of motor gasoline sold at the retail pump and the number of cubic metres of diesel fuel oil sold at the retail pump in the province for the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Quarterly Report on Energy Supply-Demand in Canada”
is multiplied by
(B) the average of the monthly retail price of regular leaded gasoline at full service stations in the largest city in the province for the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its quarterly publication entitled “Consumer Prices and Price Indexes”,
plus an amount that is the aggregate of
(v) the value of capital and repair expenditure on machinery and equipment in the province in the calendar year ending in the fiscal year, which value is equal to an amount equal to the aggregate of
(A) the amount of capital expenditures on machinery and equipment in the province in that calendar year, as determined by Statistics Canada for the purposes of its annual publication entitled “Private and Public Investment in Canada Outlook”, minus that portion of such amount that consists of
(I) the amount of capital expenditure on machinery and equipment for agriculture and fishing in the province in that calendar year, as determined by Statistics Canada for the purposes of its annual publication entitled “Private and Public Investment in Canada Outlook”, and
(II) the retail value of new commercial vehicle sales in the province in that calendar year, as determined by Statistics Canada for the purposes of its annual publication entitled “New Motor Vehicle Sales”, and
(B) the amount of repair expenditures on machinery and equipment in the province in that calendar year, as determined by Statistics Canada for the purposes of its annual publication entitled “Private and Public Investment in Canada Outlook”, minus that portion of such amount that consists of repair expenditures on machinery and equipment for agriculture and fishing in the province in the calendar year, as determined by Statistics Canada for the purposes of that publication,
(vi) the value of sales of construction materials in the province in the calendar year ending in the fiscal year, which value is equal to the quotient obtained when
(A) the cost of materials used in construction in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Construction in Canada”,
is divided by
(B) a factor equal to one plus the average rate of provincial sales tax, expressed as a fraction, in the province in the calendar year ending in the fiscal year, and
(vii) the value of sales by service establishments in the province in the calendar year ending in the fiscal year, which value is equal to the aggregate of
(A) telephone company receipts from local and long distance telephone calls originating in the province in that calendar year, as determined by Statistics Canada for the purposes of these Regulations,
(B) total sales in the province in that calendar year by hotels, motels and tourist courts, as determined by Statistics Canada for the purposes of its annual publication entitled “Traveller Accommodation Statistics”,
(C) an amount that
(I) in a calendar year ending in the fiscal year in respect of which Statistics Canada has made a survey to determine the receipts from admissions of regular motion picture theatres and drive-in theatres, is equal to the amount so determined for the province, and
(II) in a calendar year ending in a fiscal year in respect of which Statistics Canada has not made a survey described in subclause (I), is equal to the product obtained when the receipts from admissions of regular motion picture theatres and drive-in theatres as determined for the province for the last preceding year for which such survey was made is multiplied by a fraction, of which the numerator is the aggregate for the 10 provinces of the amount determined pursuant to subparagraph (i) for that calendar year and the denominator is the aggregate for the 10 provinces of the amounts determined pursuant to subparagraph (i) for the calendar year for which such survey was made,
(D) the operating revenue from direct subscribers of cable television companies with more than 1,000 subscribers in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Cable Television”, and
(E) total receipts of restaurants, caterers and taverns in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its monthly publication entitled “Restaurant, Caterer and Tavern Statistics”;
minus an amount equal to the aggregate of the amounts referred to in subparagraphs (v) and (vi) that are attributable to the province and relate to oil and gas exploration and development in the offshore area, as determined by Statistics Canada for the purposes of these Regulations, for each fiscal year commencing on or after April 1, 1985;
(e) in the case of tobacco taxes, the number of cigarettes sold to final purchasers in the province in the fiscal year as determined by dividing the amount of revenue derived by the province in the fiscal year in respect of the revenue source described in paragraph (d) of the definition revenue source in subsection 4(2) of the Act, according to the certificate submitted by the Chief Statistician of Canada pursuant to subsection 9(2) of these Regulations, by the average annual tax levy per cigarette applicable in that province for that fiscal year;
(f) in the case of motive fuel taxes derived from the sale of gasoline, the aggregate of the products obtained when
(i) the adjusted number of litres of gasoline taxed at road-use rate in the province in the calendar year ending in the fiscal year is multiplied by the average tax rate,
(ii) the number of litres of aviation fuel sold in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada from a survey made for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales”, is multiplied by the average tax rate, and
(iii) the number of litres of gasoline sold for use by farm trucks in the province in the calendar year ending in the fiscal year is multiplied by the average tax rate;
(g) in the case of motive fuel taxes derived from the sale of diesel fuel, the amount that is the aggregate of the products obtained when
(i) the adjusted number of litres of diesel oil taxed at road-use rate in the province in the calendar year ending in the fiscal year is multiplied by the average tax rate for that year,
(ii) the number of litres of railway fuel sold in the province in the calendar year ending in the fiscal year,
(A) as determined by Statistics Canada from a survey made for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales”, or
(B) in the case of a province in which railway fuel is not taxed throughout the calendar year, as determined by the Minister based on data prepared by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”,
is multiplied by the average tax rate for that year, and
(iii) the number of litres of diesel oil sold for use by farm trucks in the province in the calendar year ending in the fiscal year is multiplied by the average tax rate for that year;
(h) in the case of non-commercial motor vehicle licensing revenues, the aggregate of
(i) the number of passenger automobile registrations in the province in the calendar year ending in the fiscal year,
(ii) four-tenths of the number of motorcycle registrations in the province in the calendar year ending in the fiscal year, and
(iii) four-tenths of the number of moped registrations, or of mopeds in use where the province does not register mopeds, in the province in the calendar year ending in the fiscal year,
as determined by Statistics Canada for the purposes of its annual publication entitled “Road Motor Vehicles, Registrations” or, where such determination is not made by Statistics Canada, as determined by the Minister;
(i) in the case of commercial motor vehicle licensing revenues, the aggregate, for the calendar year ending in the fiscal year and the preceding five calendar years, of the amounts for each such calendar year obtained when the value of retail sales of new commercial vehicles in the province for each such calendar year, as determined by Statistics Canada for the purposes of its annual publication entitled “New Motor Vehicle Sales”, is divided by the Industry Selling Price Index for all trucks for each such calendar year, as determined by Statistics Canada for the purposes of its monthly publication entitled “Industry Price Indexes”;
(j) in the case of alcoholic beverage revenues derived from the sale of spirits, the quantity of spirits sold in the province in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Control and Sale of Alcoholic Beverages in Canada”;
(k) in the case of alcoholic beverage revenues derived from the sale of wine, the quantity of wine sold in the province in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Control and Sale of Alcoholic Beverages in Canada”;
(l) in the case of alcoholic beverage revenues derived from the sale of beer, the quantity of beer sold in the province in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “The Control and Sale of Alcoholic Beverages in Canada”;
(m) in the case of hospital and medical care insurance premiums, the number of tax returns filed under the Income Tax Act by individuals in the province under 65 years of age for the taxation year ending in the fiscal year, as determined by the Department of National Revenue, which number is the aggregate of
(i) the number of returns filed by individuals taxed as single with taxable income of $4,200 or more,
(ii) twice the number of returns filed by individuals taxed as married with taxable income of $5,000 or more,
(iii) 75 per cent of the number of returns filed by individuals taxed as single with taxable income of $3,800 or more but less than $4,200,
(iv) 75 per cent of twice the number of returns filed by individuals taxed as married with taxable income of $4,600 or more but less than $5,000,
(v) 50 per cent of the number of returns filed by individuals taxed as single with taxable income of $3,200 or more but less than $3,800,
(vi) 50 per cent of twice the number of returns filed by individuals taxed as married with taxable income of $4,000 or more but less than $4,600,
(vii) 25 per cent of the number of returns filed by individuals taxed as single with taxable income of $2,800 or more but less than $3,200, and
(viii) 25 per cent of twice the number of returns filed by individuals taxed as married with taxable income of $3,300 or more but less than $4,000;
(n) in the case of succession duties and gift taxes, the amount calculated in accordance with the formula
0.00471 × A + 0.00235 × B + 0.06137 × C + 0.04165 × D
where
(i) “A” is the aggregate of the adjusted total income of male individuals over 17 and under 65 years of age in the province with adjusted total income of $90,000 or more, as determined by the Department of National Revenue for the taxation year ending in the fiscal year,
(ii) “B” is the aggregate of the adjusted total income of female individuals over 17 and under 65 years of age in the province with adjusted total income of $90,000 or more, as determined by the Department of National Revenue for the taxation year ending in the fiscal year,
(iii) “C” is the aggregate of the adjusted total income of male individuals of 65 years of age and over in the province with adjusted total income of $90,000 or more, as determined by the Department of National Revenue for the taxation year ending in the fiscal year, and
(iv) “D” is the aggregate of the adjusted total income of female individuals of 65 years of age and over in the province with adjusted total income of $90,000 or more, as determined by the Department of National Revenue for the taxation year ending in the fiscal year;
(o) in the case of race track taxes, the amount wagered in the province in the calendar year ending in the fiscal year at pari-mutuel tracks on harness and running horse races, as determined by the Department of Agriculture for the purposes of its annual publication entitled “Race Track Supervision Pari-Mutuel Statistics”;
(p) in the case of forestry revenues, the product obtained when
(i) for each of the provinces other than British Columbia, the aggregate of the value added for logging activity in the forestry industry and the amount of payments for stumpage and royalties in respect of forestry production in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Logging”, and
(ii) for the province of British Columbia, the aggregate of the amount referred to in subparagraph (i) for the province and the value added for merchandising activity attributable to the log supply division in the British Columbia coastal region, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Logging”
is multiplied by a fraction, of which the numerator is the volume of forestry production from Crown land in the province in that calendar year and the denominator is the total volume of forestry production in the province in that calendar year, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Logging”;
(q) in the case of new oil revenues, the product obtained when
(i) the total value of marketable production of special old petroleum in the province in the calendar year ending in the fiscal year, as determined by the Minister of Energy, Mines and Resources, less the value of marketable production of such special old petroleum in the province in the calendar year ending in the fiscal year as determined under clause (t)(i)(A)
is multiplied
(ii) in the case of the province of Manitoba, by 0.5,
(iii) in the case of the province of Saskatchewan, by 0.95,
(iv) in the case of the province of British Columbia, by 1.15, and
(v) in the case of any other province, by 1;
(r) in the case of NORP oil revenues, the product obtained when
(i) the aggregate total value of marketable production of conventional new petroleum and Dodsland Viking Sand Pool petroleum in the province in the calendar year ending in the fiscal year, as determined by the Minister of Energy, Mines and Resources, less the value of marketable production of such conventional new petroleum and Dodsland Viking Sand Pool petroleum in the province in the calendar year ending in the fiscal year as determined under clause (t)(i)(B)
is multiplied
(ii) in the case of the province of Manitoba, by 0.5,
(iii) in the case of the province of Saskatchewan, by 0.95,
(iv) in the case of the province of British Columbia, by 1.15, and
(v) in the case of any other province, by 1;
(s) in the case of conventional old oil revenues, the product obtained when
(i) the total value of marketable production of crude oil from naturally occurring hydrocarbon deposits in the province in a calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”, less the aggregate of the value of marketable production of petroleum for the province obtained under subparagraphs (q)(i), (r)(i) and (t)(i)
is multiplied
(ii) in the case of the province of Manitoba, by 0.5,
(iii) in the case of the province of Saskatchewan, by 0.95,
(iv) in the case of the province of British Columbia, by 1.15, and
(v) in the case of any other province, by 1;
(t) in the case of heavy oil revenues, the product obtained when
(i) the sum of
(A) the value of marketable production of special old petroleum having a density of 935 kg/m3 or greater in the province in the calendar year ending in the fiscal year, and
(B) the total value of marketable production of conventional new petroleum and Dodsland Viking Sand Pool petroleum having a density of 935 kg/m3 or greater in the province in the calendar year ending in the fiscal year,
as determined by the Minister of Energy, Mines and Resources,
is multiplied
(ii) in the case of the province of Manitoba, by 0.5,
(iii) in the case of the province of Saskatchewan, by 0.95,
(iv) in the case of the province of British Columbia, by 1.15, and
(v) in the case of any other province, by 1;
(u) in the case of mined oil revenues, the total value of marketable production of synthetic petroleum from naturally occurring hydrocarbon deposits in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”;
(v) in the case of domestically sold natural gas revenues, the total volume of net production withdrawals of gas from naturally occurring hydrocarbon deposits in the province in the calendar year ending in the fiscal year, less the volume of exports out of Canada of gas from naturally occurring hydrocarbon deposits in the province from the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”;
(w) in the case of exported natural gas revenues, the total volume of exports out of Canada of gas from naturally occurring hydrocarbon deposits in the province from the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”;
(x) in the case of sales of Crown leases and reservations on oil and natural gas lands, the revenues derived from such sales by the province in the fiscal year, as determined by Statistics Canada less any portion thereof that has been deducted therefrom by the Minister under paragraph 5(5)(a);
(y) in the case of oil and gas revenues other than those described in paragraphs (q) to (x), the aggregate of
(i) the total volume of marketable production of oil, synthetic petroleum and condensate from naturally occurring hydrocarbon deposits in the province in the calendar year ending in the fiscal year, as classified and determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”, and
(ii) the quotient obtained when the total volume of net production withdrawals of gas from naturally occurring hydrocarbon deposits in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “The Crude Petroleum and Natural Gas Industry”, is divided by 1.033;
(z) in the case of iron revenues, the aggregate of the value of iron ore and iron remelt production from the mining industry in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(aa) in the case of uranium revenues, the value of uranium production from the mining industry in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(bb) in the case of asbestos revenues, the value of asbestos production from the mining industry in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(cc) in the case of coal revenues, the value of coal production from the mining industry in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(dd) in the case of other metallic and non-metallic mineral revenues other than potash revenues, the aggregate for the province in the calendar year ending in the fiscal year of
(i) the amount by which the value of production in total metal mining industries exceeds the aggregate of the value of production described under paragraphs (z) and (aa),
(ii) the amount by which the value of production in total non-metal mining industries exceeds the aggregate of
(A) the value of production described under paragraphs (bb) and (ee), and
(B) the value of production of elemental sulphur, and
(iii) an amount equal to 0.361724 times the aggregate of the value of production of sand and gravel and stone,
where such values of production are as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(ee) in the case of potash revenues, the value of potash production from the mining industry in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(ff) in the case of water power rentals,
(i) for each of the provinces other than Quebec and Newfoundland, the number of megawatt hours of electricity generated in the province by electric utilities and industrial establishments from hydro sources in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Electric Power Statistics”,
(ii) for the province of Quebec or the province of Newfoundland, the number of megawatt hours of electricity generated in the province that is equal to the product obtained when
(A) the aggregate of the megawatt hours of electricity generated from hydro sources in the province of Quebec and in the province of Newfoundland by electric utilities and industrial establishments in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Electric Power Statistics”,
is multiplied by
(B) the fraction of which the numerator is the amount of hydro-electric revenue for the province and the denominator is the aggregate of the hydro-electric revenue for the provinces of Quebec and Newfoundland
where
“hydro-electric revenue for the province” means the product obtained when the total revenue from the sale of electricity by electric utilities and industrial establishments in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Electric Power Statistics”, is multiplied by a fraction, of which the numerator is the number of megawatt hours of electricity generated from hydro sources in the province and the denominator is the number of megawatt hours of electricity generated from all sources in the province by electric utilities and industrial establishments in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Electric Power Statistics”;
(gg) in the case of insurance premium taxes, the amount for the province for the calendar year ending in the fiscal year by which
(i) the aggregate for provincially-licensed corporations (including, for the purposes of this paragraph, provincial government enterprises carrying on the business of insurance), provincially-licensed fraternal benefit societies, federally-registered corporations and federally-registered fraternal benefit societies of
(A) the value of direct premiums written for property and casualty insurance,
(B) the value of life insurance premiums, and
(C) the value of premiums, contributions and dues of provincially-licensed and federally-registered fraternal benefit societies,
exceeds
(ii) the aggregate of
(A) the total value of dividends paid to policyholders by federally-registered corporations or federally-registered fraternal benefit societies,
(B) the estimated value of dividends paid to policyholders by provincially-licensed corporations or provincially-licensed fraternal benefit societies, being the product obtained when the fraction, of which the numerator is the amount determined in clause (A) and the denominator is that portion of the amount determined in subparagraph (i) that is attributable to federally-registered corporations and federally-registered fraternal benefit societies, is multiplied by that portion of the amount determined in subparagraph (i) that is attributable to provincially-licensed corporations and provincially-licensed fraternal benefit societies,
(C) the value of direct premiums written for property and casualty marine insurance of federally-registered corporations, and
(D) the estimated value of direct premiums written for property and casualty marine insurance of provincially-licensed corporations, being the product obtained when the fraction, of which the numerator is the amount determined in clause (C) and the denominator is that portion of the amount determined in clause (i)(A) that is attributable to federally-registered corporations, is multiplied by that portion of the amount determined in clause (i)(A) that is attributable to provincially-licensed corporations,
and where a provincial government enterprise carrying on the business of insurance receives moneys from the provincial government consolidated revenue fund or its equivalent or the proceeds from a specific tax or part thereof, such moneys or proceeds shall be deemed to be premiums of that enterprise, which together with all premiums and dividends referred to in subparagraphs (i) and (ii), shall be determined by the Minister on the basis of information supplied to him by the Department of Insurance and the province;
(hh) in the case of payroll taxes, the amount of wages, salaries and military pay and allowances, excluding supplementary labour income, paid in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “National Income and Expenditure Accounts”;
(ii) in the case of provincial and local government property taxes, the aggregate of
(i) the value of residential net capital stock in the province, measured in constant 1971 dollars, as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purposes of its annual publication for each province entitled “Fixed Capital Flows and Stocks”,
(ii) the product obtained when
(A) the value of that portion of non-residential net capital stock in the province that consists of building construction in all industries other than building construction for local governments, schools, universities, hospitals, churches and other institutions, measured in constant 1971 dollars, as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purposes of its annual publication for each province entitled “Fixed Capital Flows and Stocks”,
is multiplied by
(B) a fraction, of which
(I) the numerator is the aggregate of the amounts determined in subparagraph (i) for the 10 provinces, and
(II) the denominator is the aggregate of the amounts determined in clause (ii)(A) for the 10 provinces, and
(iii) the product obtained when
(A) the aggregate, for the calendar year ending in the preceding fiscal year and the four preceding calendar years, of the amounts calculated in accordance with the formula
(A + B - C) ÷ D
where
(I) “A” is the net provincial income at factor cost for the year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”,
(II) “B” is the amount of federal transfer payments paid to persons in the province for the year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”,
(III) “C” is the product obtained when
1. for each of the provinces other than the province of Quebec, the excess of total federal revenue from the province over indirect taxes from that province for the year, as determined by Statistics Canada for the purposes of its publication entitled “Provincial Economic Accounts”, and
2. for the province of Quebec, the aggregate of the excess of total federal revenue from the province over indirect taxes from that province for the year, as determined by Statistics Canada for the purposes of its publication entitled “Provincial Economic Accounts”, and the amount determined pursuant to subsection 4(4) of the Act for the year
is multiplied by a fraction, of which
3. the numerator is the aggregate for the 10 provinces of the amount of federal transfer payments paid to persons for the year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”, and
4. the denominator is the aggregate of the amount determined pursuant to subsection 4(4) of the Act for the year and the aggregate for the 10 provinces of the excess of total federal revenue from the province over indirect taxes from that province for the year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”, and
(IV) “D” is the implicit price index of the gross national expenditure for the year, as determined by Statistics Canada for the purposes of its publication entitled “National Income and Expenditure Accounts”
is multiplied by
(B) a fraction, of which
(I) the numerator is the product of 30 times the aggregate of the amounts determined in subparagraphs (i) and (ii) for the 10 provinces, and
(II) the denominator is the product of 70 times the aggregate of the amounts determined in clause (A) for the 10 provinces;
(jj) in the case of lottery revenues, the amount of personal income attributable to the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “National Income and Expenditure Accounts”, minus the portion of such amount that consists of the aggregate of the following amounts, of which the amounts referred to in subparagraphs (i) to (vi) are as determined by Statistics Canada for the purposes of its annual publication entitled “National Income and Expenditure Accounts” and the amount referred to in subparagraph (vii) is as determined by the Minister, namely,
(i) the value of physical change in farm-held inventory in the province in that calendar year,
(ii) transfer payments by the province to persons in the province in that calendar year,
(iii) transfer payments by local governments to persons in the province in that calendar year,
(iv) federal individual income tax collections in the province in that calendar year,
(v) contributions by employers and employees in the province to the unemployment insurance fund in that calendar year,
(vi) contributions by employers and employees in the province to universal pension plan funds in that calendar year, and
(vii) the amount for that calendar year of the special abatement of personal income taxes referred to in subsection 4(4) of the Act;
(kk) in the case of miscellaneous provincial taxes and revenues, including miscellaneous revenues from natural resources, concessions and franchises, sales of provincial goods and services and local government revenue from sales of goods and services and miscellaneous local government taxes, the aggregate for the revenue sources described in paragraphs (a) to (n) and paragraphs (x) to (aa) of the definition revenue source in subsection 4(2) of the Act and in that part of the revenue source described in paragraph (cc) of the definition revenue source in subsection 4(2) of the Act not related to natural resources, of the products obtained when
(i) the revenue base for each such revenue source in the province for the year as determined pursuant to this section
is multiplied by
(ii) a fraction, of which the numerator is the aggregate for the 10 provinces of the revenue for each such revenue source for the year, as determined by the Chief Statistician of Canada or by the Minister pursuant to subsections 9(2) to (4) and adjusted pursuant to subsection 5(5) and the denominator is the aggregate, for the 10 provinces, of the revenue base for each such revenue source for the year as determined pursuant to this section;
(ll) in the case of the provincial share of the tax on 1971 undistributed income on hand, the revenue derived by the province from that revenue source, as determined by Statistics Canada;
(mm) in the case of the provincial share of offshore minerals revenue, the revenue derived by the province from that revenue source, as determined by Statistics Canada; and
(nn) in the case of the provincial share of other shared revenue, the revenue derived by the province from its share of the revenue shared by Canada with the province other than the revenue referred to in paragraphs (ll) and (mm) and in subparagraphs 5(1)(s)(iii) and (ee)(iii), as determined by Statistics Canada.
(4) In this section,
(a) the assessed federal individual income tax for an individual in a province for a taxation year is the amount assessed and attributable to that province with respect to that individual for that taxation year pursuant to the Income Tax Act and regulations made thereunder as computed during the next following taxation year, taking into account additional assessments with respect to earlier taxation years that have not been included in the amount of the assessment for such earlier years, but before deducting any amount by virtue of section 120, 126 or 127 of the Income Tax Act; and
(b) the allocated corporation taxable income applicable to a province for a fiscal year is the aggregate of
(i) the product obtained when the aggregate of the amount of taxable income of corporations eligible to a deduction under subsection 125(1) of the Income Tax Act that is attributable to the province by virtue of Part IV of the Income Tax Regulations for the taxation years of the corporations ending in the year that ends in the fiscal year and the amount of such taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for such earlier years is multiplied by a fraction, of which the numerator is the weighted average of the small business tax rates in the 10 provinces and the denominator is the weighted average of the general corporate tax rates in the 10 provinces,
where
(A) weighted average of the small business tax rates means the aggregate for the 10 provinces of the products obtained when the effective rate of tax payable under provincial income tax legislation by corporations eligible for a deduction under subsection 125(1) of the Income Tax Act in the calendar year is multiplied by a fraction, of which the numerator is the aggregate of the amount of taxable income of such corporations attributable to the province by virtue of Part IV of the Income Tax Regulations for the taxation years of the corporations ending in the year that ends in the fiscal year and the amount of such taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for such earlier years and the denominator is the aggregate of that numerator for the 10 provinces, and
(B) weighted average of the general corporate tax rate means the aggregate for the 10 provinces of the product obtained when the general provincial corporate income tax rate in the province in the calendar year is multiplied by a fraction, of which the numerator is the amount referred to in clause (ii)(A) and the denominator is the aggregate of that numerator for the 10 provinces, and
(ii) the amount by which the aggregate of
(A) the aggregate of that portion of the amount of taxable income of corporations not eligible for a deduction under subsection 125(1) of the Income Tax Act that is attributable to the province by virtue of Part IV of the Income Tax Regulations for the taxation years of the corporations ending in the year that ends in the fiscal year and the amount of such taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for such earlier years, and
(B) the amount of taxable income that, in the opinion of the Minister based on information supplied to him by the Minister of National Revenue, was not attributable to the province for the taxation years of corporations referred to in subparagraph (i) as a direct consequence of the enactment of paragraph 20(1)(v.1) of the Income Tax Act with respect to oil or gas,
exceeds
(C) the amount of taxable income that, in the opinion of the Minister, based on information supplied to him by the Minister of National Revenue, was attributable to the province for the taxation years of corporations referred to in subparagraph (i) as a direct consequence of the enactment, with respect to oil or gas, of paragraph 12(1)(o), paragraph 18(1)(m) and subsections 69(6) and (7) of the Income Tax Act
computed on or before the last day of the fourteenth month next following the end of the calendar year in which the taxation year ends and, for the purposes of this paragraph, the expression corporation does not include a non-resident-owned investment corporation as defined in paragraph 133(8)(d) of the Income Tax Act or a corporation specified in Schedule D to the Financial Administration Act that is an agent of Her Majesty.
(5) For the purposes of paragraph (3)(c) and this subsection,
(a) eligible investments of an industry for a year means the total assets of an industry for a year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, less the aggregate for that industry of the following assets:
(i) cash,
(ii) nine-tenths of accounts receivable,
(iii) inventories,
(iv) one-half of other current assets,
(v) total net fixed assets, and
(vi) other assets,
as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”;
(b) excess of net book value over undepreciated capital cost of an industry means the product obtained when the accumulated depreciation of an industry for a year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, is multiplied by a fraction, of which
(i) the numerator is the excess of the capital cost allowance over the book depreciation of that industry for that year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”, and
(ii) the denominator is the book depreciation of that industry for that year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”;
(c) excess of undepreciated capital cost over net book value of an industry means the product obtained when the accumulated depreciation of an industry for a year as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics” is multiplied by a fraction, of which
(i) the numerator is the excess of the book depreciation over the capital cost allowance of that industry for that year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”, and
(ii) the denominator is the book depreciation of that industry for that year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”;
(d) investment allowance of an industry means the product obtained when the total paid-up capital of an industry for a year is multiplied by a fraction, of which
(i) the numerator is the amount of eligible investments of that industry for that year, and
(ii) the denominator is the amount of total assets of that industry for that year;
(e) taxable paid-up capital employed in the province in the year means, for an industry, the product obtained when the total taxable paid-up capital of that industry for a year is multiplied by a fraction, of which
(i) the numerator is the total taxable income allocated to that province for that industry for that year, as determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”, and
(ii) the denominator is the total taxable income for Canada of that industry for that year, as determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”;
(f) total assets of an industry for a year means the total assets of an industry for a year, as determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, less the excess of net book value over undepreciated capital cost, if any, of that industry for the year, and plus the excess of undepreciated capital cost over net book value, if any, of that industry for the year;
(g) total equity employed in the province in the year means, for an industry, the product obtained when the total equity of that industry for a year, as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, is multiplied by a fraction, of which
(i) the numerator is the total taxable income allocated to that province for that industry for that year, as determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”, and
(ii) the denominator is the total taxable income for Canada of that industry for that year, as determined by Statistics Canada for the purposes of its publication entitled “Corporation Taxation Statistics”;
(h) total paid-up capital of an industry means the aggregate of total liabilities, equity and the excess of undepreciated capital cost over net book value, if any, of an industry for a year less the aggregate of
(i) nine-tenths of accounts payable,
(ii) one-half of other current liabilities,
(iii) one-half of deferred income,
as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, and less
(iv) the excess of net book value over the undepreciated capital cost of that industry, if any; and
(i) total taxable paid-up capital of an industry means the total paid-up capital of an industry for a year less the amount of the investment allowance of that industry for the year.
(6) For the purposes of paragraph (3)(f),
(a) the adjusted number of litres of gasoline taxed at road-use rate in the province means the excess of either the number of litres of gasoline taxed at road-use rate sold in the province in a calendar year ending in a fiscal year as determined by Statistics Canada for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales” or, in the case of a province in which tax at road-use rates is not paid throughout the whole of that calendar year, the number of litres sold in the province for use on roads, as determined by the Minister based on data prepared by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”, over an amount that is the aggregate of
(i) the number of litres of gasoline taxed at road-use rate purchased by the Government of Canada in the province in the calendar year ending in the fiscal year, if any, as determined by the Minister from data prepared for the purposes of Part VIII of the Act,
(ii) in the case of a province where gasoline sold for use by farm trucks is taxed at road-use rate, the amount referred to in paragraph (c), and
(iii) the amount of litres of gasoline that is in excess of the number of litres of gasoline taxed at road-use rate in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales”, over an amount that is 1,000 times the aggregate of the number of cubic metres of gasoline used for road transport and urban transit and the number of cubic metres of gasoline sold at retail pumps in the province in the calendar year ending in the fiscal year, as classified and determined by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”;
(b) average tax rate means
(i) for the purposes of subparagraph (3)(f)(i), the aggregate for the 10 provinces of the products obtained when the provincial rate of gasoline tax applicable to road-use gasoline sold in the province in the calendar year ending in the fiscal year is multiplied by a fraction, of which the numerator is the adjusted number of litres of gasoline taxed at road-use rate in the province in the calendar year ending in the fiscal year and the denominator is the aggregate for the 10 provinces of the numerators of that fraction,
(ii) for the purposes of subparagraph (3)(f)(ii), the aggregate for the 10 provinces of the products obtained when the tax rate applicable to aviation fuel sold in the province in the calendar year ending in the fiscal year is multiplied by a fraction, of which the numerator is the number of litres of aviation fuel sold in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada from a survey made for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales”, and the denominator is the aggregate for the 10 provinces of the numerators of that fraction, and
(iii) for the purposes of subparagraph (3)(f)(iii), the aggregate for the 10 provinces of the products obtained when the tax rate applicable to gasoline sold for use by farm trucks in the province in the calendar year ending in the fiscal year is multiplied by a fraction, of which the numerator is the number of litres of gasoline used by farm trucks in the province in the calendar year ending in the fiscal year and the denominator is the aggregate for the 10 provinces of the numerators of that fraction; and
(c) number of litres of gasoline sold for use by farm trucks in the province means 300 times the number of cubic metres of motor gasoline used in the agriculture sector in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”.
(7) For the purposes of paragraph (3)(g) and this subsection,
(a) adjusted number of litres of diesel oil taxed at road-use rate in the province means an amount that is the excess of either the number of litres of diesel oil taxed at road-use rate in the province in the calendar year ending in the fiscal year as determined by Statistics Canada for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales” or, in the case of a province in which tax at road-use rates is not paid throughout the whole of that calendar year, the number of litres sold in the province for use on roads, as determined by the Minister based on data prepared by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”, over an amount that is the aggregate of
(i) the number of litres of diesel oil taxed at road-use rate purchased by the Government of Canada in the province in the calendar year ending in the fiscal year, if any, as determined by the Minister from data prepared for the purposes of Part VIII of the Act,
(ii) an amount that is the product obtained when 0.3 in the case of the province of Prince Edward Island, 0.25 in the case of the provinces of Quebec and Newfoundland, 0.15 in the case of the provinces of Nova Scotia and New Brunswick, zero in the case of the other provinces, is multiplied by an amount that is the excess of either the number of litres of diesel oil taxed at road use rates in the province in the calendar year ending in the fiscal year as determined by Statistics Canada for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales” or, in the case of a province in which tax at road-use rates is not paid throughout the whole of that calendar year, the number of litres of diesel oil sold in the province for use on roads, as determined by the Minister based on data prepared by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”, over the amount referred to in subparagraph (i), and
(iii) in the case of the province of Ontario, the number of litres of diesel oil sold for use by farm trucks in the province;
(b) average tax rate means
(i) for the purposes of subparagraph (3)(g)(i), the aggregate for the 10 provinces of the products obtained when the provincial rate of diesel tax applicable to road-use diesel oil in the province in the calendar year ending in the fiscal year is multiplied by a fraction, of which the numerator is the adjusted number of litres of diesel oil taxed at road-use rates in the province in the calendar year ending in the fiscal year and the denominator is the aggregate for the 10 provinces of the numerators of that fraction,
(ii) for the purposes of subparagraph (3)(g)(ii), the aggregate for the 10 provinces of the products obtained when the tax rate applicable to railway fuel in the province in the calendar year ending in the fiscal year is multiplied by a fraction, of which
(A) the numerator is
(I) the number of litres of railway fuel sold in the province in the calendar year ending in the fiscal year as determined by Statistics Canada from a survey made for the purposes of its publication entitled “Road Motor Vehicles, Fuel Sales”, or
(II) in the case of a province in which railway fuel is not taxed throughout the calendar year, the number of litres of railway fuel sold in the province in the calendar year ending in the fiscal year as determined by the Minister based on data prepared by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”, and
(B) the denominator is the aggregate for the 10 provinces of the numerators of that fraction; and
(iii) for the purposes of subparagraph (3)(g)(iii), the aggregate for the 10 provinces of the products obtained when the tax rate applicable to diesel oil sold for use by farm trucks in the province is multiplied by a fraction where the numerator is the number of litres of diesel oil used by farm trucks in the province and the denominator is the aggregate for the 10 provinces of the numerators of that fraction; and
(c) the number of litres of diesel oil sold for use by farm trucks in the province means 200 times the number of cubic metres of diesel fuel oil used in the agriculture sector in the province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its quarterly publication entitled “Quarterly Report on Energy Supply-Demand in Canada”.
(8) For the purposes of this section,
(a) the expressions oil, gas and hydrocarbon have the same meaning as in the Energy Administration Act; and
(b) the expressions conventional new petroleum, Dodsland Viking Sand Pool petroleum and special old petroleum have the same meaning as in the Petroleum Compensation Program Regulations.
(9) Notwithstanding the provisions of paragraphs (3)(e) and (x), where a province has changed its method of accounting for a fiscal year so that the revenues referred to in those paragraphs are derived during a period of more or less than 12 months, the Minister may adjust the amount of such revenues in respect of that fiscal year to offset the effect, if any, of such change in accounting method.
- SOR/87-189, s. 1
7 For the purposes of these Regulations, a reference to a publication of Statistics Canada by a specific title shall be deemed to include a reference to any other publication of Statistics Canada published in lieu of or in substitution of that publication.
Interim Estimates
8 (1) In respect of each fiscal year in the fiscal arrangements period, the Minister
(a) shall make an estimate, in accordance with subsection (3), of the amount, if any, of the fiscal equalization payment that is payable pursuant to the Act for the fiscal year to a province,
(i) prior to the first day of February preceding the commencement of that fiscal year,
(ii) during the second quarter of that fiscal year,
(iii) during the period commencing the first day of December and ending the twelfth day of January of that fiscal year,
(iv) during the period commencing the first day of September and ending the twelfth day of October of the first year following the close of that fiscal year,
(v) during March of the first year following the close of that fiscal year, and
(vi) during the period commencing the first day of September and ending the twelfth day of October of the second year following the close of that fiscal year; and
(b) may make an estimate, in accordance with subsection (3), of the amount, if any, of the fiscal equalization payment that is payable pursuant to the Act for the fiscal year to a province,
(i) during the period commencing the first day of March in the immediately preceding fiscal year and ending the twelfth day of April of that fiscal year,
(ii) during the period commencing the first day of September and ending the twelfth day of October of that fiscal year,
(iii) during March of that fiscal year, and
(iv) during any period commencing the first day of the final month of a quarter and ending the twelfth day of the subsequent quarter, other than the times specified in paragraph (a), following the close of the fiscal year, until such time as the final computation pursuant to subsection 9(1) is completed,
where, in the opinion of the Minister, there is new information available that would have a significant effect on the amount of equalization payable to one or more provinces.
(2) Where an estimate made
(a) pursuant to subparagraph (1)(a)(i) shows that there is an amount of fiscal equalization payable to a province for a fiscal year, the Minister shall pay to the province on account of the amount that is finally payable in respect of that fiscal year an amount equal to 1/24 of the amount so estimated on the first and third working days following the fifteenth calendar day of each month in that fiscal year;
(b) pursuant to subparagraph (1)(b)(i) shows that the amount of fiscal equalization payable to the province in respect of a fiscal year as estimated pursuant to subparagraph (1)(a)(i) should be revised, the Minister shall make the payments referred to in paragraph (a) in accordance with the new estimate;
(c) pursuant to subparagraph (1)(a)(ii), (iii) or (1)(b)(ii) establishes that the payments to the province made pursuant to the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall
(i) if any amount remains payable to the province, adjust the remaining payments in respect of that fiscal year referred to in paragraph (a) in accordance with the new estimate, beginning with the first payment following the date of that estimate, and
(ii) if an overpayment has been made to the province, recover the amount of that overpayment before the end of the fiscal year;
(d) pursuant to subparagraph (1)(b)(iii) establishes that the payments to the province made pursuant to the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall,
(i) if any amount remains payable to the province, pay to the province that amount, and
(ii) if an overpayment has been made to the province,
(A) recover the amount of that overpayment in that month, or
(B) where the province so requests, recover the overpayment in equal monthly instalments in the succeeding fiscal year;
(e) pursuant to subparagraph (1)(a)(iv), (v), (vi) or (1)(b)(iv) establishes that the payments to the province made pursuant to the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall
(i) if any amount remains payable to the province,
(A) pay to the province that amount, or
(B) in the event the estimate was made pursuant to subparagraph (1)(a)(v), and where, pursuant to a tax collection agreement entered into with the province pursuant to Part III of the Act, there has been established during that month of March that an amount is owing by the province to Canada by reasons of an overpayment pursuant in that agreement, the Minister may, notwithstanding clause (A), pay to the province the amount remaining, if any, after setting off from the amount so payable to the province, the amount of that overpayment, and
(ii) if an overpayment has been made to the province,
(A) subject to section 27, recover the amount of that overpayment in the month during which the estimate was made or in the succeeding month, or
(B) in the event the estimate was made
(I) pursuant to subparagraph (1)(a)(iv), (vi), or (1)(b)(iv), and where the province requests, the Minister may, notwithstanding clause (A) but subject to section 27, recover the overpayment in equal monthly instalments in the remaining months of that fiscal year during which the estimate was made, or
(II) pursuant to subparagraph (1)(a)(v), the Minister may, notwithstanding clause (A) but subject to section 27,
1. where the province so requests, recover the overpayment in equal monthly instalments in the succeeding fiscal year, or
2. where, pursuant to a tax collection agreement entered into with the province pursuant to Part III of the Act, there has been established during that month of March that an amount is owing by Canada to the province by reason of an underpayment pursuant to that agreement, recover from the province the amount remaining, if any, after setting off from the amount of the overpayment to the province, the amount of that underpayment.
(3) Notwithstanding anything in these Regulations, for the purpose of determining the payments on account and subsequent adjustments thereto under subsections (1) and (2) that may be made in respect of the fiscal equalization applicable to the province for a fiscal year,
(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 such information as 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 made pursuant to subparagraphs (1)(a)(i), (ii) and (1)(b)(i), the Minister on the basis of population statistics made available to him by the Chief Statistician of Canada, and
(ii) in the case of an estimate made pursuant to any other subparagraph of subsection (1), the Chief Statistician of Canada;
(d) the provincial revenue base of each revenue source described in paragraphs (a), (c), (d), (e), (g), (i), (j), (k), (l), (n) and (aa) of the definition revenue source in subsection 4(2) of the Act may be substituted for the product obtained when
(i) the aggregate for the 10 provinces of the revenue base for each such revenue source
is multiplied by
(ii) the product obtained when the provincial share of each such revenue base is multiplied by a fraction of which
(A) the numerator is one plus a fraction of which the numerator is the provincial percentage of the population of all the provinces for the fiscal year and the denominator is the provincial percentage of the population of all the provinces for the fiscal year referred to in paragraph (b), and
(B) the denominator is 2; and
(e) where the year that is used for the revenue base for a revenue source in an interim estimate made pursuant to subsection (1) is a year that is previous to the year that will be used in the final computation for a fiscal year pursuant to subsection 9(1), the provincial revenue base may be adjusted to take account of economic factors or trends that might be expected to bring about a significant change in the provincial share of such revenue base as between the year that is used in such interim estimate and the year that will be used in the final computation for such 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 the proportion, expressed as a percentage, that
(a) the revenue base for that revenue source for that fiscal year for the province,
is of
(b) the revenue base for that revenue source for that year for all the provinces.
Final Computation
9 (1) Subject to section 10, within 30 days following the receipt by the Minister of the certificate submitted to him by the Chief Statistician of Canada pursuant to subsection (2) in respect of a fiscal year, the Minister shall make the final computation of the amount, if any, of the fiscal equalization payment that is payable for that fiscal year pursuant to the Act to a province and the Minister shall subsequently furnish all provinces with tables setting out the details of such computation.
(2) The Chief Statistician of Canada shall, in respect of each fiscal year in the fiscal arrangements period, prepare and submit to the Minister, not later than 23 months next following the close of that fiscal year, a certificate in respect of that fiscal year based on the most recent information that has been prepared by Statistics Canada for that fiscal year, setting out
(a) the revenue from each revenue source described in the definition revenue source in subsection 4(2) of the Act for each province for the fiscal year and, where the Chief Statistician is unable, on the basis of such information, to differentiate the revenue for a province
(i) between the revenue sources described in paragraphs (e) and (f) of that definition,
(ii) between the revenue sources described in paragraphs (g) and (h) of that definition,
(iii) between the revenue sources described in paragraphs (i), (j) and (k) of that definition,
(iv) between the revenue sources described in paragraphs (p) to (q) of that definition, or
(v) between the revenue sources described in paragraphs (r) and (s) of that definition,
the Chief Statistician of Canada may aggregate in respect of that province the revenues from such revenue sources;
(b) the information required to calculate each revenue base as defined in paragraphs 6(3)(b) to (nn) for each province for the fiscal year with the exception of the information required to calculate
(i) the allocated corporation taxable income referred to in subparagraph 6(3)(b)(i),
(ii) the data referred to in paragraphs 6(3)(m), (n), (o), (q), (r), (t) and (gg),
(iii) the quantity of gasoline sold to the Government of Canada referred to in subparagraph 6(6)(a)(i), and
(iv) the quantity of diesel fuel sold to the Government of Canada referred to in subparagraph 6(7)(a)(i); and
(c) the population of the province for the fiscal year.
(3) Where the Chief Statistician of Canada aggregates in respect of a province the revenues from any of the revenue sources referred to in subparagraphs (2)(a)(i) to (v), the Minister shall determine the portions of such aggregations that are applicable to each of the revenue sources referred to in those paragraphs.
(4) The Minister shall make his computation under subsection (1) in respect of a fiscal year on the basis of the information
(a) contained in the certificate submitted to him by the Chief Statistician of Canada pursuant to subsection (2); and
(b) supplied to him by any other source, including the Minister of National Revenue, the Minister of Agriculture, the Minister of Energy, Mines and Resources and the provinces, in respect of matters referred to in subsection (2) but in respect of which no information has been provided by the Chief Statistician of Canada in the certificate submitted to him pursuant to subsection (2).
(5) Where, pursuant to a final computation made pursuant to subsection (1), there remains an outstanding amount payable to a province in respect of a fiscal year, the Minister shall pay to the province the outstanding amount.
(6) Where a final computation pursuant to subsection (1) discloses an overpayment to a province in respect of a fiscal year, the Minister may recover, subject to section 27, that overpayment by setting it off against any amount payable to the province under the Act or may otherwise recover that overpayment as a debt due to Her Majesty in right of Canada by the province.
10 Notwithstanding anything in this Part, every fiscal equalization payment made under the Act is subject to such subsequent adjustments as, in the opinion of the Minister, are necessary because of changes in the information contained in a certificate submitted to the Minister pursuant to subsection 9(2), where the Chief Statistician of Canada, before the publication of such information by Statistics Canada, provides the Minister with supplementary or additional information indicating that revisions are required to be made to make the information to be published accurate and such adjustment, if any, shall be subject to subsections 9(5) and (6).
PART IIFiscal Stabilization Payments
11 An application by a province for a fiscal stabilization payment for a fiscal year shall be signed by the provincial Minister of Finance or provincial Treasurer and shall include the following information:
(a) a statement showing the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from personal income taxes as described in paragraph 5(1)(a) and the portion of such revenues for each such fiscal year that is received pursuant to a tax collection agreement with the Government of Canada;
(b) a statement showing the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from that portion of the revenue source described in paragraph (b) of the definition revenue source in subsection 4(2) of the Act that consists of revenues from corporation income taxes as described in paragraph 5(1)(b) and the portion of such revenues for each such fiscal year that is received pursuant to a tax collection agreement with the Government of Canada;
(c) a statement of the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from that portion of the revenue source described in paragraph 5(1)(dd) that consists of provincial property taxes and from that portion of the revenue source described in paragraph 5(1)(ff) that consists of provincial taxes and revenues;
(d) a statement of the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from each of the revenue sources described in paragraphs 5(1)(c) to (cc), 5(1)(ee) and (gg);
(e) a statement providing a further breakdown of the revenues from any of the revenue sources referred to in paragraphs (a) to (d) into component taxes, fees, levies, premiums or royalties where there has been a change in the rates or structures at which such component taxes, fees, levies, premiums or royalties were levied, during the course of the fiscal year or any time during the immediately preceding fiscal year subsequent to the first day of that year;
(f) a statement describing any change, and the effective date of such change, in the rates or in the structures at which a provincial tax, fee, levy, premium or royalty was levied during the course of the fiscal year or any time during the immediately preceding fiscal year subsequent to the first day of that year;
(g) a statement estimating the change in revenues in the fiscal year from the immediately preceding fiscal year from each of the changes described in the statement referred to in paragraph (f);
(h) a statement describing any change in the accounting practices, from that of the immediately preceding fiscal year, in the public accounts of the province; and
(i) such other information relating to the revenue raising system of the province as the Minister may request.
12 In adjusting the revenue subject to fiscal stabilization of a province for a fiscal year pursuant to paragraph 6(1)(b) of the Act, the Minister shall
(a) add to the revenue subject to stabilization of the province for the fiscal year as otherwise determined the amount of the decrease in revenues in the fiscal year that results from changes in the rates or in the structures of provincial taxes or other revenues including the following changes:
(i) the termination of an existing tax, fee, levy, premium or royalty during the fiscal year or after the commencement of the immediately preceding fiscal year,
(ii) decreases in the rate, averaged over a year, at which a tax, fee, levy, premium or royalty is levied,
(iii) changes in the ranges of the base, averaged over a year, to which the rate of a tax, fee, levy, premium or royalty is applied,
(iv) changes in the classification of taxpayers where a tax, fee, levy, premium or royalty varies according to some attribute of the taxpayer, such as the nature of his activity, the form of his business organization, the kind of ownership of his business or the age of the taxpayer,
(v) increases in deductions, credits or allowances, averaged over a year, that the taxpayer may claim in determining the amount of his tax or the base to which his rate of tax is applied,
(vi) the adding, broadening or enlarging of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) increases in rebates, averaged over a year, in respect of a tax, fee, levy, premium or royalty,
(viii) a decrease, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) a decrease in the proportion of the profits remitted to a provincial government by its own enterprises, and
(x) a decrease in the charges for the rental or use of government property, including water power rentals; and
(b) subtract from the revenues subject to stabilization of the province for the fiscal year as otherwise determined the amount of the increase in revenues in the fiscal year that results from changes either in the rates or the structures of provincial taxes or other revenues including the following changes:
(i) the introduction of a new tax, fee, levy, premium or royalty during the fiscal year or after the commencement of the immediately preceding year,
(ii) increases in the rate, averaged over a year, at which a tax, fee, levy, premium or royalty is levied,
(iii) changes in the ranges of the base, averaged over a year, to which the rate of a tax, fee, levy, premium or royalty is applied,
(iv) changes in the classification of taxpayers where a tax, fee, levy, premium or royalty varies according to some attribute of the taxpayer, such as the nature of his activity, the form of his business organization, the kind of ownership of his business or the age of the taxpayer,
(v) decreases in deductions, credits or allowances, averaged over a year, that the taxpayer may claim in determining the amount of his tax or the base to which his rate of tax is applied,
(vi) the removal, narrowing or restricting of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) decreases in rebates, averaged over a year, in respect of a tax, fee, levy, premium or royalty,
(viii) an increase, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) an increase in the proportion of the profits remitted to a provincial government by its own enterprises, and
(x) an increase in the charges for the rental or use of government property, including water power rentals.
13 (1) For purposes of this Part, the total revenue derived by a province for a fiscal year from the revenue sources described in the definition revenue source in subsection 4(2) of the Act is
(a) in the case of the revenue source described in paragraph (a) thereof and for provinces to which subsection 6(3) of the Act applies, the amount determined under subsection 6(3) of the Act and subsection (2) of this section based on information made available to the Minister for the administration of the tax collection agreement referred to in subsection 6(3) of the Act;
(b) in the case of that part of the revenue source described in paragraph (b) thereof related to corporation income taxes and for provinces to which subsection 6(4) of the Act applies, the amount determined under subsection 6(4) of the Act and subsection (2) of this section based on information made available to the Minister for the administration of the tax collection agreement referred to in subsection 6(4) of the Act; and
(c) in the case of any other revenue source described in that definition and in the case of any revenue part of paragraphs (a) and (b) of that definition to which paragraph (a) or (b) of this subsection does not apply, the amount as determined by the Minister based on the information made available to him by the province in its application and in the certificate submitted to him by the Chief Statistician of Canada in accordance with subsection 9(2).
(2) In computing the revenue derived by a province from a revenue source for a fiscal year, the Minister shall deduct from that revenue source the amounts referred to in subsection 5(5), except that for the revenue sources described in paragraphs (1)(a) and (b) the Minister shall deduct the total amount of tax credits and rebates determined in respect of that province pursuant to the tax collection agreement in force between the Government of Canada and that province.
- SOR/86-867,s. 1
14 (1) The portion of the fiscal equalization payment payable to a province for a fiscal year, referred to in subparagraph 6(2)(a)(ii) of the Act, is
(a) the total payment for that province for that fiscal year under Part I of the Act,
less
(b) that part of the amounts computed under paragraph 4(1)(a) of the Act for that fiscal year that is attributable to revenues of local governments that are included in any of the revenue sources described in the definition revenue source in subsection 4(2) of the Act.
(2) Where the amount referred to in paragraph (1)(b) is greater than the amount referred to in paragraph (1)(a), the portion of a fiscal equalization payment payable to a province for a fiscal year referred to in subparagraph 6(2)(a)(ii) of the Act is zero.
15 (1) Subject to subsection (2), a province may make an application for the payment of advances on account of fiscal year stabilization payments that may become payable to the province.
(2) An application under subsection (1) shall be
(a) made on the basis of revenue information relating to the first five months of the fiscal year or any greater number of months;
(b) supported by as much comparative revenue information as is available to the province for the period referred to in paragraph (a) and for the corresponding period of the previous year, including information pertaining to any changes in the revenue subject to stabilization resulting from changes either in the rates or in the structure of provincial taxes or other revenues from those that were in effect during the immediately preceding fiscal year; and
(c) signed by the provincial Minister of Finance or the provincial Treasurer.
16 The Minister may make one or more advance payments to a province on account of fiscal stabilization for a fiscal year following receipt of a completed application therefor made in accordance with section 15.
17 (1) A final settlement of an application for stabilization from a province for a fiscal year shall be made within 45 months after the end of the fiscal year for which the application is made and the Minister shall furnish the province with a statement describing how the amount, if any, of the stabilization payment was determined.
(2) Where, by reason of advance payments, an overpayment has been made to a province in respect of fiscal stabilization, the amount of the overpayment may, subject to section 27, be deducted from any amount payable to the province under the Act or be recovered from the province as a debt due to Her Majesty in right of Canada.
- SOR/86-867, s. 2
PART IIITax Collection Agreements
18 Where the government of a province has entered into a tax collection agreement with the Government of Canada, advance payments authorized under section 8 of the Act may be made to the province by the Minister out of the Consolidated Revenue Fund on the basis of estimates calculated in accordance with the provisions of the agreement.
PART IVTransfer Payments with Respect to Tax on 1971 Undistributed Income on Hand
19 The Minister of National Revenue shall, within the first four months of each calendar year, furnish the Minister with a statement of
(a) the total net tax collected under Part IX of the Income Tax Act in respect of the 12 months ending on the last day of the calendar year that preceded the previous calendar year; and
(b) the amount of such tax that is shareable or recoverable in respect of each province for that 12 month period pursuant to Part V of the Act.
20 The Minister shall, within two months of receiving the statement required by section 19, pay to each province the amount determined by the Minister of National Revenue and shall furnish to the province a statement describing how the amount was determined.
21 Subject to section 27, where an overpayment to a province arising from a refund to a corporation under Part IX of the Income Tax Act has occurred, the Minister may recover an amount equal to the overpayment as a debt due to Her Majesty in right of Canada by the province from any moneys that become payable to the province under the Act or under any other Act of the Parliament of Canada.
PART VEstablished Programs Financing
22 For the purposes of subparagraph 20(1)(b)(ii) 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, aggregate
(i) 75 per cent 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 per cent 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, aggregate
(i) 75 per cent of the aggregate, for all corporations having a taxation year ending in the calendar year that ends in the fiscal year, of the corporation taxable income earned in a taxation year in a province, as determined by the Minister of National Revenue, pursuant to paragraph 124(4)(a) of the Income Tax Act, and
(ii) 25 per cent of the aggregate, for all corporations having a taxation year ending in the calendar year that begins in the fiscal year, of the corporation taxable income earned in a taxation year in a province, as determined by the Minister of National Revenue, pursuant to paragraph 124(4)(a) of the Income Tax Act.
23 (1) With respect to
(a) the program referred to in section 24 of the Act, the Secretary of State, and
(b) the programs referred to in sections 25 to 27 of the Act, the Minister of National Health and Welfare,
may make monthly advance payments on account of any amounts that the Minister estimates may become payable to a province in respect of that fiscal year.
(2) Advance payments made to a province in respect of a fiscal year may be adjusted during that fiscal year so that the cash component of the established programs financing transfer is consistent with the data being used to compute payments to the provinces under the tax collection agreements.
(3) An interim adjustment in respect of each program in a fiscal year may be calculated during each of the two following fiscal years and may be given effect, by an increase or decrease in one or more of the amounts otherwise payable in respect of the programs, over a period not exceeding eight months, commencing on the first day of the month, or on the first day of the second month, following the month during which the adjustment was calculated.
(4) A final settlement in respect of each program in a fiscal year shall be calculated using only data available in the period ending 27 months after the end of that fiscal year and shall be given effect by an increase or decrease in one or more of the amounts otherwise payable in respect of the program during the third fiscal year following the fiscal year to which the final settlement is related, unless otherwise agreed on by the Government of Canada and the government of the province.
(5) The population of a province for a fiscal year shall be,
(a) for the purposes of subsection (4), the population of that province on the first day of June of that fiscal year, as estimated by the Chief Statistician of Canada using the most recent information that has been officially obtained by or that is available to Statistics Canada within the period of 27 months immediately following the end of that fiscal year; and
(b) for the purposes of subsections (2) and (3), the population as estimated by the Minister on the basis of population statistics made available to him by the Chief Statistician of Canada.
(6) The Chief Statistician of Canada shall, in respect of a fiscal year, prepare and submit to the Minister, immediately following the close of the period of 27 months immediately following the end of that fiscal year, a certificate setting out the population of each province for that fiscal year and the four immediately preceding fiscal years, as estimated by him pursuant to paragraph (5)(a).
- SOR/84-75, s. 1
24 (1) For the purposes of this section,
- adult
adult means, in respect of a resident of a province, a person who
(a) is 21 years of age or older, or
(b) is between 16 and 20 years of age and is not a child under any law of the province that provides for the care, custody, control or supervision of children by a child welfare authority or the equivalent; (adulte)
- home
home means, with respect to home care service, any place of residence and includes a private residence, nursing home, home for the aged, child care institution, boarding home and any long term residential facility; (domicile)
- institution
institution means,
(a) with respect to a service other than converted mental hospitals, a facility or portion of a facility that qualifies as a home for special care under section 8 of the Canada Assistance Plan Regulations and is not
(i) a hospital within the meaning of the Hospital Insurance and Diagnostic Services Act,
(ii) a mental hospital,
(iii) a tuberculosis hospital or sanatorium,
(iv) a correctional or educational facility, or
(v) a supportive living environment that provides short-term residential accommodation, not normally exceeding 12 months, in conjunction with social services having as their object crisis intervention, rehabilitation or social integration, except residences providing primarily for the accommodation, care, treatment or training of mentally retarded persons, and
(b) with respect to converted mental hospitals, a facility or portion of a facility that was a hospital for the mentally ill, whether or not it was a hospital under provincial law, and that has been converted to provide any of the services described in subparagraphs (2)(c)(i), (ii) and (iii). (établissement)
(2) For the purposes of the Act and these Regulations, the services referred to in paragraphs 27(8)(a) to (e) of the Act are defined as follows:
(a) nursing home intermediate care service means a service that is provided in an institution in respect of adults and that consists of
(i) nursing and personal care under the direction or supervision of qualified medical and nursing care staff,
(ii) assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the residents of the institution,
(iii) services required in the operation of the institution, and
(iv) the provision of room and board to the extent of the total monthly cost or part thereof except for an amount calculated by subtracting, for each recipient of the service,
(A) the total monthly amount or part thereof that is payable to the recipient of the service under any law of the province for comforts allowances, clothing, drugs and biologicals, services required in the provision of drugs and biologicals and medical and surgical goods and services and that is shareable under the Canada Assistance Plan,
from
(B) an amount equal to the total monthly amount or part thereof of the old age security pension and maximum supplement payable to a beneficiary under the Old Age Security Act who is not a married person;
(b) adult residential care service means a service provided in an institution in respect of adults consisting of
(i) personal and supervisory care according to the individual requirements of residents of the institution,
(ii) assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the residents of the institution,
(iii) services required in the operation of the institution, and
(iv) the provision of room and board to the extent of the total monthly cost or part thereof except for an amount calculated by subtracting, for each recipient of the service,
(A) the total monthly amount or part thereof that is payable to the recipient of the service under any law of the province for comforts allowances, clothing, drugs and biologicals, services required in the provision of drugs and biologicals and medical and surgical goods and services and that is shareable under the Canada Assistance Plan,
from
(B) an amount equal to the total monthly amount or part thereof of the old age security pension and maximum supplement payable to a beneficiary under the Old Age Security Act who is not a married person;
(c) converted mental hospitals means any of the following services provided in an institution:
(i) the service in respect of adults described in subparagraphs (a)(i) to (iv),
(ii) the service in respect of adults described in subparagraphs (b)(i) to (iv), and
(iii) insured services within the meaning of the Hospital Insurance and Diagnostic Services Act;
(d) home care service means any of the following services provided in respect of a patient in the home:
(i) direct patient care services, except mental health services, including health assessment and diagnostic services, health treatment and maintenance services and related personal care services, provided by nurses, physiotherapists, dieticians, chiropodists, podiatrists and medical technicians and technologists or any of their assistants,
(ii) the acquisition, installation, operation and maintenance of equipment required for home renal dialysis, home hyperalimentation or home oxygen therapy, and equipment directly required for the services referred to in subparagraph (i), and
(iii) administrative and other services required in rendering the services referred to in subparagraph (i) or (ii), including the cost of drugs and biologicals administered by a practitioner, overhead, transportation of practitioners, salaries of support staff and medical equipment and supplies; and
(e) ambulatory health care service means any of the following services provided in respect of an ambulatory patient:
(i) direct patient care services, except mental health services, including health assessment and diagnostic services, health treatment and maintenance services, provided by nurses, physiotherapists, dieticians, chiropodists, podiatrists and medical technicians and technologists or any of their assistants, through a health unit, health centre, medical practice, rehabilitation centre, multipurpose centre or other premise that is not a hospital pursuant to the Hospital Insurance and Diagnostic Services Act, and
(ii) administrative and other services required in rendering the services referred to in subparagraph (i), including cost of drugs and biologicals administered by a practitioner, overhead, salaries of support staff and medical equipment and supplies.
25 The approval by a province referred to in subsection 28(2) of the Act shall be evidenced by a letter from the government of that province signed by a Minister on behalf of that government and addressed to the Minister.
PART VIAlternative Payments for Standing Programs
26 (1) In respect of the established programs, payments authorized under section 31 of the Act shall be made at such times and in such manner as provided for in section 23 of these Regulations.
(2) In respect of the special welfare program, payments authorized under section 31 of the Act to a province shall be made as follows:
(a) in each fiscal year, the Minister shall estimate the amount, if any, payable in respect of that year and shall pay that amount, if any, to the province on account thereof in monthly instalments commencing on April 30 of that year; and
(b) where, during a fiscal year in respect of which an estimated payment is being made pursuant to paragraph (a) to a province, it is determined by the Minister that, owing to more accurate information received by him for determining the estimated amount payable, the estimated amount referred to in that paragraph should be revised, the Minister shall make a new estimate of the amount in accordance with that information, and the remaining monthly instalments payable in respect of that year shall be adjusted in accordance with the revised estimate.
(3) When, after the end of each fiscal year, the Minister is satisfied that he has received all the relevant information for determining the actual amount payable to a province in respect of the special welfare program, he shall make a final determination of the aggregate amount, if any, to which that information relates
(a) that is payable to the province in respect of that year under subsection 31(2) of the Act, or
(b) that may be recovered from the province in accordance with subsection 31(4) of the Act,
and the Minister shall furnish the province with a statement outlining the method used in making the determination and the results of each computation made in respect of the determination.
PART VIIGeneral
Maximum Recovery for Fiscal Year
27 (1) For the purposes of this section, fiscal arrangements period means the period beginning on April 1, 1977 and ending on March 31, 1987.
(2) The Minister shall, for each province in each fiscal year of the fiscal arrangements period, determine
(a) the net total of all underpayments and overpayments in respect of fiscal equalization, fiscal stabilization, revenue guarantee payments and income tax payments under tax collection agreements, other than
(i) overpayments, in respect of fiscal equalization payments, established pursuant to the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977 for the fiscal year beginning on April 1, 1980, and the fiscal year beginning on April 1, 1981 for a province that is not entitled to a fiscal equalization payment determined under subsection 4(1) of the Act for the fiscal year beginning on April 1, 1982, and
(ii) overpayments, in respect of fiscal equalization payments, that are attributable to a revision of the population of that province by the Chief Statistician of Canada as a result of the census taken by Statistics Canada in 1981 in accordance with the Statistics Act, established pursuant to the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977 for the fiscal year beginning on April 1, 1980 and the fiscal year beginning on April 1, 1981 for a province that is entitled to a fiscal equalization payment determined under subsection 4(1) of the Act for the fiscal year beginning on April 1, 1982,
established in the fiscal year pursuant to the Act, the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977, these Regulations, the tax collection agreements and the former Act in respect of all prior fiscal years; and
(b) overpayments in respect of that fiscal year for fiscal equalization, fiscal stabilization, revenue guarantee payments and income tax payments under tax collection agreements.
(3) Subject to subsection (6), the Minister shall not, if a province so requests, make aggregate recoveries in respect of that province in a fiscal year, after offsetting the underpayments, if any, against the overpayments as determined under subsection (2), in excess of
(a) in the case of the fiscal year beginning on April 1, 1982, $20 per capita of population of such province for that fiscal year;
(b) in the case of the fiscal year beginning on April 1, 1983, $25 per capita of population of such province for that fiscal year;
(c) in the case of the fiscal year beginning on April 1, 1984, $30 per capita of population of such province for that fiscal year;
(d) in the case of the fiscal year beginning on April 1, 1985, $35 per capita of population of such province for that fiscal year; and
(e) in the case of the fiscal year beginning on April 1, 1986, $40 per capita of population of such province for that fiscal year.
(4) The recovery of any balance outstanding after aggregate recoveries referred to in subsection (3) shall be deferred until the following fiscal year and the Minister shall take such excess into account in the following fiscal year in determining for the province referred to in that subsection for that fiscal year the net total of all overpayments and underpayments referred to in subsection (2).
(5) Notwithstanding subsections (3) and (4), any portion of the deferred amount referred to in subsection (4) that has not been recovered by the end of the second fiscal year after the fiscal year in respect of which aggregate recoveries are made pursuant to subsection (3) shall be recovered in the third fiscal year after the fiscal year in respect of which aggregate recoveries are made pursuant to subsection (3) and the Minister shall not take such portion into account in determining for the province referred to in subsection (3) for such third fiscal year the net total of all overpayments and underpayments referred to in subsection (2).
(6) The Minister, following the determination of any overpayments established pursuant to the Act and the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977 in respect of fiscal equalization payments for the fiscal year beginning on April 1, 1980 and the fiscal year beginning on April 1, 1981 for each province that is, for the fiscal year beginning on April 1, 1982, not entitled to a fiscal equalization payment determined under subsection 4(1) of the Act, shall recover,
(a) in the fiscal year beginning on April 1, 1982, 1/5 of the overpayments established;
(b) in the fiscal year beginning on April 1, 1983, 1/4 of the amount equal to the overpayments established less the sum of any recoveries made;
(c) in the fiscal year beginning on April 1, 1984, 1/3 of the amount equal to the overpayments established less the sum of any recoveries made;
(d) in the fiscal year beginning on April 1, 1985, 1/2 of the amount equal to the overpayments established less the sum of any recoveries made; and
(e) in the fiscal year beginning on April 1, 1986, the balance of any overpayment remaining.
(7) For the purpose of subsection (2), an overpayment referred to in paragraph (2)(b) is equal to the excess of
(a) the fiscal equalization payment that would be payable to a province for a fiscal year in the period beginning on April 1, 1980 and ending on March 31, 1982 under subsection 4(1) of the Act as it read on March 31, 1982 and the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977 if the population of the province for that fiscal year used in the computation of such payment was the population of the province on the first day of June of that fiscal year, based on the most recent information that has been prepared by Statistics Canada for that fiscal year in accordance with such regulations, without regard to the census taken by Statistics Canada in 1981 in accordance with the Statistics Act,
over
(b) the fiscal equalization payment payable to the province for that fiscal year pursuant to subsection 4(1) of the Act as it read on March 31, 1982 and the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1977.
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