Federal-Provincial Fiscal Arrangements Regulations, 1987
SOR/87-240
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
Registration 1987-04-15
Regulations Respecting the Payments or Contributions that may be made Under Parts I, II and IV of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act, 1977, in Respect of Fiscal Years Beginning on or After April 1, 1987
P.C. 1987-789 1987-04-15
Short Title
1 These Regulations may be cited as the Federal-Provincial Fiscal Arrangements Regulations, 1987.
Interpretation
2 In these Regulations,
- Act
Act means the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act, 1977; (Loi)
- fiscal arrangements period
fiscal arrangements period means the period beginning on April 1, 1987 and ending on March 31, 1992; (période des accords fiscaux)
- 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)
- 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, who are located 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 24, these Regulations apply in respect of payments or contributions that may be made under Parts I, II and IV of the Act in respect of a fiscal year beginning on or after April 1, 1987.
Determination of Population of a Province
4 Subject to paragraph 8(3)(c), the population of a province for a fiscal year shall be determined by the Chief Statistician of Canada,
(a) in the case of the fiscal year beginning on April 1, 1991, on the basis of 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, on the basis of 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 the purposes of the Act, 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 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 the 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 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 or revenues referred to in paragraphs (o), (x) and (y),
(ii) remittances to a provincial government of profits of the business enterprises of the province, 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” means revenues derived by a province from
(i) taxes imposed by the province on the paid-up capital of corporations, and
(ii) taxes, levies or fees imposed by the province on the provincially-guaranteed debt of business enterprises owned by the province and on all outstanding amounts advanced by the province to those business enterprises;
(d) general and miscellaneous sales taxes and amusement taxes means taxes imposed by a province, and in the case of amusement taxes also includes those taxes imposed by a local government, on final purchasers or on 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 means a specific tax imposed by a province on final purchasers of tobacco and tobacco products;
(f) motive fuel taxes derived from the sale of gasoline 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 (ee)(ii);
(g) motive fuel taxes derived from the sale of diesel fuel 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 (ee)(ii);
(h) non-commercial motor vehicle licensing revenues 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 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 for and the 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 vehicles;
(j) alcoholic beverage revenues derived from the sale of spirits means revenues derived by a province from
(i) remittances to the provincial government of profits of the liquor board, commission or authority of the province 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 spirits;
(k) alcoholic beverage revenues derived from the sale of wine means revenues derived by a province from
(i) remittances to the provincial government of profits of the liquor board, commission or authority of the province 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 wine;
(l) alcoholic beverage revenues derived from the sale of beer means revenues derived by a province from
(i) remittances to the provincial government of profits of the liquor board, commission or authority of the province arising from sales of beer,
(ii) a specific sales tax imposed by the province on the sale of beer by the liquor board, commission or authority of the province, and
(iii) fees for licences and permits for the privilege of brewing, purchasing or dispensing beer;
(m) hospital and medical care insurance premiums 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), (d) and (bb);
(n) race track taxes means taxes imposed by a province on amounts wagered on harness and running horse races;
(o) forestry revenues 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;
(p) conventional new oil revenues means revenues derived by a province from the following separate revenue sources:
(i) new oil revenues, and
(ii) NORP oil revenues;
(q) conventional old oil revenues 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 the oil referred to in subparagraphs (i) and (ii);
(r) heavy oil revenues means the aggregate of
(i) the revenues attributable to oil from naturally occurring hydrocarbon deposits in a province that have a density of 935 kg/m3 or greater and 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 that has a density of 935 kg/m3 or greater and 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 Canada and exported out of Canada from the province;
(s) mined oil revenues 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 number 2943 of the Energy Resources Conservation Board of the Province of Alberta;
(t) domestically sold natural gas revenues 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 the business enterprises of the province that are 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;
(u) exported natural gas revenues 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 the business enterprises of the province that are 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;
(v) sales of Crown leases and reservations on oil and natural gas lands 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;
(w) oil and gas revenues other than those described in paragraphs (p) to (t) 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) of the definition revenue source in subsection 4(2) of the Act and includes any oil or gas revenues of a kind that falls within the description of a revenue source set out in any of paragraphs (p) to (u) of this subsection but that cannot be attributed only to that revenue source;
(x) metallic and non-metallic mineral revenues other than potash revenues 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;
(y) potash revenues 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;
(z) water power rentals means revenues derived by a province from the right to use, or the use of, water resources;
(aa) insurance premium taxes means taxes imposed by a province on insurance premiums of insurance companies;
(bb) payroll taxes means taxes imposed by a province on the payroll of employers;
(cc) provincial and local government property taxes 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 a business where those taxes are computed by reference to the property so occupied or used by that person,
(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, and
(iii) taxes imposed by a province or local government on the sale price or value of real property on its transfer;
(dd) lottery revenues means revenues derived by a province from
(i) remittances to the provincial government of profits of the business enterprises, boards, commissions or authorities of the province 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;
(ee) 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 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 those taxes, other than the revenues derived from taxes or grants described in paragraph (cc), and revenues derived by a province from any source other than a source described elsewhere in this subsection and, for greater certainty, includes
(i) succession duties and gift 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 (o) to (z) and other than that portion of the revenues described in paragraph (ff) that relates to natural resources, but including revenues derived from fish and game licences,
(iv) revenues derived by a province from concessions and franchises and other privileges, other than the revenues 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 sales 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 those 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 sources described in subparagraphs (x) to (xvi),
(viii) crop insurance premiums, and
(ix) other miscellaneous revenues derived from the province’s own sources,
but does not include
(x) contributions derived from workers’ compensation,
(xi) contributions derived from vacation-with-pay,
(xii) contributions derived from a universal pension plan,
(xiii) revenues derived from 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 from a public service or teachers’ pension plan that is not constituted as a trust, and
(xvi) general or specific purpose transfer payments received from other governments; and
(ff) 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 means revenues derived by a province from the following separate revenue sources:
(i) the provincial share of offshore minerals revenue, and
(ii) 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 for and 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 for and 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 for and 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 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 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 Viking 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 for and 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, à l’exclusion des 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 and the province, but does not include the provincial share of offshore minerals revenue, the revenue referred to in subparagraph (1)(r)(iii) and the revenue derived from profits referred to in subparagraph (dd)(iii); (part d’une province des autres revenus partagés)
- 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 or fees related to the exploration for and development and production of uranium. (revenus provenant de l’uranium)
(3) For the purposes of this section,
(a) the words 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 sources 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 Expenditure, Assets and Liabilities”.
(5) For greater certainty, each of the revenue sources described in subsection (1) shall include any grant in lieu of taxes, licences, levies and fees that is paid to a province by the federal government in respect of that revenue source and that is not otherwise specifically included in any of the paragraphs of subsection (1).
(6) 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; and
(b) the amount of any revenue of a province that the province receives from a local government or any revenue of a local government that the local government receives from a province if the effect of including that revenue would be that the revenue 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.
- SOR/91-147, s. 1
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 that 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 tax legislation of the province 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 ten provinces;
(c) divide the amounts determined pursuant to paragraph (b) by the aggregate for the ten 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 ten 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 ten 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 ten 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 ten 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 as determined pursuant to paragraph (4)(b), and
(B) the denominator is the aggregate for the ten provinces of the amount determined pursuant to clause (A), and
(ii) the product obtained when a 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,
1. of losses accumulated in the five calendar years preceding that calendar year, in the case of the calendar years ending in the 1987-88 or 1988-89 fiscal years,
2. of losses accumulated in the six calendar years preceding that calendar year, in the case of the calendar year ending in the 1989-90 fiscal year, or
3. of losses accumulated in the seven calendar years preceding that calendar year, in the case of calendar years ending in the 1990-91 and subsequent fiscal years
to the extent that those 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 that business enterprise, but no account shall be taken of profits or losses for years prior to the calendar year beginning on January l, 1972, and
(B) the denominator is the aggregate for the ten provinces of the profits for the calendar year as determined pursuant to clause (A),
is multiplied by the aggregate for the ten 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 the 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 agriculture, forestry and fishing industry,
(B) the mining industry,
(C) the manufacturing industry,
(D) the construction industry,
(E) the utilities industry,
(F) the wholesale trade industry,
(G) the retail trade industry,
(H) the services industry, and
(I) the finance industry excluding the deposit-accepting institutions industry,
(ii) 2.5 times the total equity employed in the province in the year of all corporations classified by Statistics Canada as included in the deposit-accepting institutions industry; and
(iii) the product obtained when
(A) the aggregate of the amount of the outstanding provincially guaranteed debt of electric utilities owned by the province and all outstanding amounts advanced by the province to those electric utilities, as of the end of the taxation year of each electric utility ending in the previous fiscal year, as determined by the Minister based on the public accounts of the province and other relevant information
is multiplied by a fraction, of which
(B) the numerator is the quotient obtained when the aggregate for the ten provinces of the revenues derived for the fiscal year from the taxes, levies or fees referred to in subparagraph 5(1)(c)(ii), as determined by the Minister, is divided by the aggregate of the amounts determined pursuant to clause (A) for that fiscal year for each province, and
(C) the denominator is the quotient obtained when the aggregate for the ten provinces of the revenues derived for the fiscal year from the taxes referred to in subparagraph 5(1)(c)(i), as determined by the Minister, is divided by the aggregate of the amounts referred to in subparagraphs (i) and (ii) for each province for the fiscal year;
(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 entitled “Retail Trade”, plus an amount equal to the aggregate of
(i) the total value of vending machine sales in the province in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Vending Machine Operators”, and
(ii) the product obtained when a fraction, of which
(A) the numerator is the total value of all direct sales in Canada minus the total value of direct sales of food in Canada in the fiscal year, as determined by Statistics Canada for the purposes of its publication entitled “Direct Selling in Canada”, and
(B) the denominator is the total value of sales at retail locations in Canada in the calendar year ending in the fiscal year as determined by Statistics Canada for the purposes of its monthly publication entitled “Retail Trade”,
is multiplied by the amount of 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 entitled “Retail Trade”,
minus an amount equal to the aggregate of
(iii) 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 ten 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 ten 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 ten 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 ten 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 ten 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 ten 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 the 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 ten 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 ten 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” is the population of the province for the fiscal year, and
(D) “C” is the aggregate for the ten provinces of the product obtained when the value of “B”, determined pursuant to clause (B), is multiplied by the population of the province,
(iv) the value of retail sales for children’s clothing and footwear, which value is equal to an amount calculated in accordance with the following formula, namely,
A × (C × D) ÷ B × E ÷ F
where
(A) “A” is the total value of sales at retail locations in the ten 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”,
(B) “B” is the total value of sales at retail locations in the ten provinces in the calendar year ending in the family expenditure survey year, as determined by Statistics Canada for the purposes of its monthly publication entitled “Retail Trade”,
(C) “C” is the average per capita expenditure on children’s clothing and footwear for children thirteen and under in the ten provinces,
(D) “D” is the population of the ten provinces that is under 15 years of age in the family expenditure survey year,
(E) “E” is the product obtained by multiplying the index of per capita expenditure on children’s clothing and footwear in the province by the population in the province that is under 15 years of age for that fiscal year, and
(F) “F” is the aggregate for the ten provinces of the value of “E”, determined pursuant to clause (E),
(v) the value of the sales of tobacco in the province, which value is equal to the product obtained when
(A) one two-hundredth of the number of cigarettes sold to final purchasers in the province in the fiscal year as determined pursuant to paragraph (e)
is multiplied by
(B) the quotient obtained when
(I) the average for the fiscal year of the average quarterly retail prices 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”
is divided by
(II) a factor equal to one plus the average rate of provincial sales tax applicable to sales of tobacco, expressed as a fraction, in the province in the calendar year ending in the fiscal year,
(vi) the value of the sales of motor vehicle fuel, which value is equal to the product obtained when
(A) one thousand times the aggregate of the number of cubic metres of motor gasoline sold at retail pumps and the number of cubic metres of diesel fuel oil sold at retail pumps 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 “Quarterly Report on Energy Supply-Demand in Canada”
is multiplied by
(B) the average of the monthly retail prices of regular unleaded 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 publication Consumer Prices and Price Indexes, and
(vii) the value of retail sales of prescription drugs in the calendar year ending in the fiscal year, as determined by the Department of National Health and Welfare for the purposes of its publication entitled “National Health Expenditures in Canada”
plus
(viii) the value of capital and repair expenditures on machinery and equipment and of the cost of materials used in construction in the province in the calendar year ending in the fiscal year, which value is equal to the quotient obtained when the aggregate of
(A) the amount of capital and 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: Intentions”, minus the portion of that amount that consists of
(I) the amount of capital and repair expenditures on machinery and equipment in the primary industry, which consists of agriculture and fishing, forestry, mining, quarrying and oil wells, 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: Intentions”, and
(II) the amount of capital and repair expenditures on machinery and equipment in the manufacturing industry 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: Intentions”, and
(B) the value of 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 annual publication entitled “Construction in Canada”,
is divided by
(C) 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,
minus
(ix) an amount that is the portion of the aggregate amount attributable to the province under subparagraph (viii) that relates to oil and gas exploration and development in the offshore area, as determined by Statistics Canada for the purposes of these Regulations,
plus
(x) 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 a fiscal year in respect of which Statistics Canada has conducted 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 conducted a survey described in subclause (I), is equal to the product obtained when the receipts from admissions to regular motion-picture theatres and drive-in theatres as determined for the province for the last preceding year for which such a survey was made is multiplied by a fraction, of which
1. the numerator is the aggregate for the ten provinces of the total value of sales at retail locations for that calendar year, and
2. the denominator is the aggregate for the ten provinces of the total value of sales at retail locations for the calendar year for which that survey was made,
both as determined by Statistics Canada for the purposes of its monthly publication entitled “Retail Trade”,
(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”;
(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
(i) 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
(ii) 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 for that year,
(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 for that year, 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 for that year;
(g) in the case of motive fuel taxes derived from the sale of diesel fuel, 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 conducted 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, or for which data are incomplete or not available, 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 a 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 of those calendar years obtained when the value of retail sales of new commercial vehicles in the province for each of those calendar years, 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 of those calendar years, 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 annual 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 who are 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 a taxable income of $4,200 or more,
(ii) twice the number of returns filed by individuals taxed as married with a taxable income of $5,000 or more,
(iii) 75 per cent of the number of returns filed by individuals taxed as single with a 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 a 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 a 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 a 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 a 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 a taxable income of $3,300 or more but less than $4,000;
(n) in the case of race track taxes, the amount wagered in the province in the calendar year ending in the fiscal year at pari-mutual 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-Mutual Statistics”;
(o) in the case of forestry revenues, the product obtained when
(i) 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”,
is multiplied by
(ii) a fraction, of which the numerator is the volume of forestry production from Crown lands 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”;
(p) 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 based on relevant data, less the value of the marketable production of that special old petroleum in the province in the calendar year ending in the fiscal year, as determined pursuant to clause (s)(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;
(q) in the case of NORP oil revenues, the product obtained when
(i) the total value of the 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 based on relevant data, less the value of marketable production of that conventional new petroleum and Dodsland Viking Sand Pool petroleum in the province in the calendar year ending in the fiscal year as determined pursuant to clause (s)(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;
(r) in the case of conventional old oil revenues, the product obtained when
(i) the total value of the 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 values of marketable production of petroleum for the province obtained under subparagraphs (p)(i), (q)(i) and (s)(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;
(s) in the case of heavy oil revenues, the product obtained when
(i) the aggregate, as determined by the Minister based on relevant data, of
(A) the value of the 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,
(B) the total value of the 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, and
(C) the total value of the marketable production of crude oil from naturally occurring hydrocarbon deposits having a density of 935 kg/m3 or greater in the province, in the calendar year ending in the fiscal year, that is not included in clause (A) or (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;
(t) in the case of mined oil revenues, the total value of the 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”;
(u) 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, both 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 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”;
(w) in the case of sales of Crown leases and reservations on oil and natural gas lands, an amount determined as follows:
(i) for a fiscal year beginning on or after April 1, 1988, an amount equal to the aggregate of the products obtained, for each of the revenue sources set out in paragraphs (p), (p.2), (r) and (s) of the definition revenue source in subsection 4(2) of the Act, when the revenue base for each such revenue source in the province for the fiscal year is multiplied by the national average rate of tax in respect of each such revenue source for that fiscal year,
(ii) where the revenue to be equalized from those sales for the province for a fiscal year beginning on or after April 1, 1988 exceeds the amount determined for that province for the fiscal year under subparagraph (i), then the amount determined under this paragraph for that fiscal year shall be equal to the revenue to be equalized from those sales for the province for that fiscal year,
(iii) where the amount determined for the province for a fiscal year under subparagraph (i) exceeds the revenue to be equalized from those sales for the province for the fiscal year, that amount shall be reduced by an amount equal to the lesser of
(A) the amount of such excess, and
(B) the amount, if any, obtained when
(I) the aggregate for all preceding fiscal years of the amount, if any, determined under this subparagraph for the province for each of those preceding fiscal years
is subtracted from
(II) the aggregate for all preceding fiscal years beginning on or after April 1, 1987, of the amount, if any, in each of those preceding fiscal years by which the revenue to be equalized from those sales for the province in each of those fiscal years exceeds the amount determined under subparagraph (i) in each of those fiscal years, as if subparagraph (i) applied in each of those fiscal years, and
(iv) for the fiscal year beginning on April 1, 1987, an amount computed in accordance with the following formula:
(A + B) ÷ 2
where
(A) “A” is a fraction the numerator of which is the revenue to be equalized from those sales for the province in the fiscal year and the denominator is the aggregate for the ten provinces of the revenues to be equalized from those sales for the fiscal year, and
(B) “B” is a fraction the numerator of which is the amount that would be determined for the province under subparagraph (i) or (ii), as the case may be, and the denominator is the aggregate for the ten provinces of the amounts that would be determined under subparagraph (i) or (ii), as the case may be, if subparagraphs (i) and (ii) applied in the fiscal year;
(x) in the case of oil and gas revenues other than those described in paragraphs (p) to (w), the aggregate of
(i) the total volume of the 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;
(y) 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”;
(z) 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”;
(aa) 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”;
(bb) in the case of coal revenues, the product obtained by multiplying the aggregate for the ten provinces of the total volume of coal produced in each province in the calendar year ending in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Coal Mines”, by an amount equal to the aggregate of
(i) the product obtained when
(A) a fraction, of which the numerator is the volume of production of bituminous coal mined on the surface in the province in that calendar year and the denominator is the aggregate for the ten provinces of the volumes of the production of bituminous coal mined on the surface in that calendar year, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Coal Mines”,
is multiplied by
(B) 0.66,
(ii) the product obtained when
(A) a fraction, of which the numerator is the volume of the production of bituminous coal mined below the surface in the province in that calendar year, and the denominator is the aggregate for the ten provinces of the volumes of the production of bituminous coal mined below the surface in that calendar year, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Coal Mines”,
is multiplied by
(B) 0.04,
(iii) the product obtained when
(A) a fraction, of which the numerator is the volume of the production of sub-bituminous coal mined in the province in that calendar year, and the denominator is the aggregate for the ten provinces of the volumes of the production of sub-bituminous coal mined in that calendar year, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Coal Mines”,
is multiplied by
(B) 0.07,
and
(iv) the product obtained when
(A) a fraction, of which the numerator is the volume of the production of lignite coal mined in the province in that calendar year, and the denominator is the aggregate for the ten provinces of the volumes of the production of lignite coal mined in that calendar year, as determined from data prepared by Statistics Canada for the purposes of its annual publication entitled “Coal Mines”,
is multiplied by
(B) 0.23;
(cc) 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 metal mining industries exceeds the aggregate of the values of production described in paragraphs (y) and (z),
(ii) the amount by which the value of production in non-metal mining industries exceeds the aggregate of
(A) the value of production described in paragraph (aa) and 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”, or as determined by the Minister based on other relevant information, and
(B) the value of production of elemental sulphur, and
(iii) an amount equal to 0.361724 times the aggregate of the values of production of sand and gravel and of stone, and
(iv) an amount equal to the value of production in all other minerals which value is equal to the total of the confidential values of production not otherwise provided for in this paragraph,
where those values of production, if not otherwise specified, are as determined by Statistics Canada for the purposes of its annual publication entitled “General Review of the Mineral Industries”;
(dd) in the case of potash revenues, the volume 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”, or as determined by the Minister based on other relevant information;
(ee) in the case of water power rentals,
(i) for each province other than the provinces of 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 provinces of Quebec and 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) a 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 revenues 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 annual 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”;
(ff) 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 fraternal benefit societies 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 a fraction, of which the numerator is the value referred to in clause (A), and the denominator is the portion of the amount determined under subparagraph (i) that is attributable to federally registered corporations and federally registered fraternal benefit societies, is multiplied by the portion of the amount determined under 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 a fraction, of which the numerator is the value referred to in clause (C), and the denominator is the portion of the value referred to in clause (i)(A) that is attributable to federally registered corporations, is multiplied by the portion of the amount determined under 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, those moneys or proceeds shall be deemed to be premiums of that enterprise which premiums, 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 Office of the Superintendent of Financial Institutions and the province;
(gg) 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”;
(hh) in the case of provincial and local government property taxes, the amount computed in accordance with the following formula, namely,
(0.40092 × A) + (0.11908 × B) + (0.3636 × C) + (0.0864 × D) + (0.00696 × E) + (0.02304 × F)
where
(i) “A” is equal to the value of residential net capital stock in the province, measured in current 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 entitled “Fixed Capital Flows and Stocks”,
(ii) “B” is equal to the product obtained when
(A) personal disposable income for the calendar year that ends in the preceding fiscal year, less provincial and local indirect taxes for that year, other than non-profit taxes on corporations, motor vehicle licences and permits paid by business and miscellaneous taxes on natural resources in each province, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”, multiplied by
(I) 0.696003, in the case of Newfoundland,
(II) 0.570491, in the case of Prince Edward Island,
(III) 0.814596, in the case of Nova Scotia,
(IV) 0.640038, in the case of New Brunswick,
(V) 1.646949, in the case of Quebec,
(VI) 1.672523, in the case of Ontario,
(VII) 1.137669, in the case of Manitoba,
(VIII) 0.728819, in the case of Saskatchewan,
(IX) 1.141243, in the case of Alberta, and
(X) 1.750050, in the case of British Columbia
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the amounts referred to in subparagraph (i) for the ten provinces, and the denominator is the aggregate of the amounts determined under clause (ii)(A) for the ten provinces,
(iii) “C” is equal to the product obtained when
(A) the value of the portion of non-residential net capital stock in the province that consists of building construction in all industries other than in agriculture, local governments, provincial government, schools, universities, hospitals, churches and other institutions, measured in current 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 entitled “Fixed Capital Flows and Stocks”,
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the amounts referred to in subparagraph (i) for the ten provinces, and the denominator is the aggregate of the values referred to in clause (A) for the ten provinces,
(iv) “D” is equal to the product obtained when
(A) the net provincial income at factor cost for the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Economic Accounts”, minus the gross domestic product at factor cost attributable to the following industries, namely, agriculture, public education services industries (which includes elementary and secondary schools, universities and colleges), hospitals, provincial administration, local administration and residential construction, in the province in the calendar year ending in the preceding fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Gross Domestic Product by Industry”,
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the amounts referred to in subparagraph (i) for the ten provinces, and the denominator is the aggregate of the net provincial incomes referred to in clause (A) for the ten provinces,
(v) “E” is equal to the product obtained when
(A) the value of farm net capital stock in the province that consists of building construction in the agricultural industry, measured in current 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 entitled “Fixed Capital Flows and Stocks”,
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the amounts referred to in subparagraph (i) for the ten provinces, and the denominator is the aggregate of the values referred to in clause (A) for the ten provinces, and
(vi) “F” is equal to the product obtained when
(A) the value of farm land in each province, measured in current 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 entitled “National Balance Sheet Accounts”,
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the amounts referred to in subparagraph (i) for the ten provinces, and the denominator is the aggregate of the values referred to in clause (A) for the ten provinces;
(ii) in the case of lottery revenues, the amount computed in accordance with the following formula, namely,
? A + ß B
where
(i) "?" is equal to 0.5 in 1987-88, 0.625 in 1988-89, 0.75 in 1989-90, 0.875 in 1990-91 and 1.0 in 1991-92 and subsequent fiscal years,
(ii) "ß" is equal to 0.5 in 1987-88, 0.375 in 1988-89, 0.25 in 1989-90, 0.125 in 1990-91 and 0.0 in 1991-92 and subsequent fiscal years,
(iii) “A” is equal to the gross cash revenues from the sale of lottery tickets, excluding free tickets given away as prizes, by provincially owned lottery corporations, attributable to each province in the fiscal year, as determined by Statistics Canada for the purposes of its annual publication entitled “Provincial Government Enterprise Finance”,
(iv) “B” is equal to the product obtained when
(A) 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 that amount that consists of the aggregate of the following amounts, of which the amounts referred to in subclauses (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 subclause (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,
is multiplied by
(B) a fraction, of which the numerator is the aggregate of the gross cash revenues referred to in subparagraph (iii) for the ten provinces, and the denominator is the aggregate of the amounts referred to in clause (A) for the ten provinces;
(jj) 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 revenues from sales of goods and services and miscellaneous local government taxes, the aggregate for the revenue sources set out in paragraphs (a) to (n) and paragraphs (x) to (aa) of the definition revenue source in subsection 4(2) of the Act and in the part of the revenue source set out in paragraph (cc) of that definition that is 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 ten provinces of the revenues for each such revenue source for the year, as determined by the Chief Statistician of Canada or by the Minister under subsections 9(2) to (4) and adjusted pursuant to subsection 5(6), and the denominator is the aggregate, for the ten provinces, of the revenue base for each such revenue source for the year, as determined pursuant to this section;
(kk) 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
(ll) 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 revenues described in paragraph (kk) and subparagraphs 5(1)(r)(iii) and (dd)(iii), as determined by Statistics Canada.
(4) In this section,
(a) the assessed federal individual income tax, in respect of an individual in a province for a taxation year, means 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, before deducting any amount by virtue of section 120, 126 or 127 of that Act, additional assessments with respect to earlier taxation years that have not been included in the amount of the assessment for those earlier years;
(b) allocated corporation taxable income applicable to a province for a fiscal year means the aggregate of
(i) the product obtained when the aggregate of the amounts of taxable income of corporations 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 that taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for those earlier years is multiplied by a fraction, of which the numerator is the weighted average of the small business tax rates in the ten provinces, and the denominator is the weighted average of the general corporate tax rates in the ten provinces, where
(A) weighted average of the small business tax rates means the aggregate for the ten 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 amounts 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 that taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for those earlier years, and the denominator is the aggregate of those numerators for the ten provinces, and
(B) weighted average of the general corporate tax rates means the aggregate for the ten provinces of the products 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 those numerators for the ten 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 that taxable income in respect of earlier taxation years that has not been included in the amount of taxable income for those earlier years, and
(B) the amount of taxable income that, as determined by the Minister based on information supplied to the Minister 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, with respect to oil or gas, of paragraph 20(1)(v.1) of the Income Tax Act,
exceeds the aggregate of
(C) the amount of taxable income that, as determined by the Minister, based on information supplied to the Minister 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 paragraphs 12(1)(o) and 18(1)(m) and subsections 69(6) and (7) of the Income Tax Act, and
(D) an amount in respect of the taxable income of investment corporations and mutual fund corporations that was attributable to the province for the taxation year of those corporations ending in the year that ends in the fiscal year, and for previous taxation years to the extent the taxable income for those previous years has not been taken into account under this clause, which amount, determined by the Minister of National Revenue, is equal to the aggregate of all the amounts, each of which is an amount in respect of the taxable income of each of those corporations for that or any previous taxation year equal to the product obtained when
(I) a fraction of which the numerator is the capital gains refund payable, pursuant to the Income Tax Act, to the corporation for that taxation year, or for any previous taxation year to the extent the refund has not been taken into account in the calculation done under this subclause for a previous fiscal year, and the denominator is the percentage referred to in subparagraph 131(6)(d)(i) of the Income Tax Act applicable to the taxation year in respect of which the capital gains refund is payable
is multiplied by
(II) a fraction of which the numerator is the corporation’s taxable income earned in the province in the taxation year in respect of which the capital gains refund is payable and the denominator is the corporation’s taxable income for that taxation year in respect of which the capital gains refund is payable
computed on or before the last day of the twelfth month of the calendar year following the calendar year in which the taxation year ends and, for the purposes of this paragraph, 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 that is a prescribed federal Crown corporation for the purposes of section 27 of the Income Tax Act and is an agent of Her Majesty; and
(c) notwithstanding paragraph (b), in determining the allocated corporation taxable income applicable to a province for the fiscal year beginning on April 1, 1987, only half of the amount determined under clause (b)(ii)(D) shall be taken into account in computing the amount to be determined under subparagraph (b)(ii).
(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, in respect of 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, 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 for 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, and
(iii) one half of deferred income,
as classified and determined by Statistics Canada for the purposes of its publication entitled “Corporation Financial Statistics”, 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 this section,
(a) average family expenditure on children’s clothing and footwear means the aggregate of the average family expenditure on girls’ wear, boys’ wear and infants’ wear in the province or in the ten provinces, as the case may be, for the family expenditure survey year, as determined by Statistics Canada for the purposes of its publication entitled “Family Expenditure in Canada”;
(b) average number of children thirteen and under in the family means the aggregate of the average number of girls four to thirteen years of age, the average number of boys four to thirteen years of age and the average number of infants under four years of age in the family in the province or in the ten provinces, as the case may be, for the family expenditure survey year, as determined by Statistics Canada for the purposes of its publication entitled “Family Expenditure in Canada”;
(c) average per capita expenditure on children’s clothing and footwear for children thirteen and under is the quotient obtained by dividing the average family expenditure on children’s clothing and footwear in the province or in the ten provinces, as the case may be, by the average number of children thirteen and under in the family in the province or in the ten provinces, as the case may be;
(d) index of per capita expenditure on children’s clothing and footwear for the province is equal to the quotient obtained by dividing the average per capita expenditure on children’s clothing and footwear for children thirteen and under in the province by the average per capita expenditure on children’s clothing and footwear for children thirteen and under in the ten provinces;
(e) family expenditure survey year means the most recent calendar year ending in or before the fiscal year for which Statistics Canada has conducted a family expenditure survey.
(7) 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
(i) 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 as determined by the Minister based on other relevant information, or
(ii) in the case of a province in which tax at road-use rates is not paid throughout 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” or based on other relevant information,
over an amount that is the aggregate of
(iii) 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
(iv) the number 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”, or as determined by the Minister based on other relevant information, 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”, or as determined by the Minister based on other relevant information;
(b) average tax rate means
(i) for the purposes of subparagraph (3)(f)(i), the aggregate for the ten 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 ten provinces, of the numerators of that fraction,
(ii) for the purposes of subparagraph (3)(f)(ii), the aggregate for the ten 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” or as determined by the Minister based on other relevant information, and the denominator is the aggregate for the ten provinces of the numerators of that fraction, and
(iii) for the purposes of subparagraph (3)(f)(iii), the aggregate for the ten 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 ten 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”, or as determined by the Minister based on other relevant information.
(8) 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
(i) 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 as determined by the Minister based on other relevant information, or
(ii) in the case of a province in which tax at road-use rates is not paid throughout 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”, or based on other relevant information,
over an amount that is the aggregate of
(iii) 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, and zero in the case of the other provinces is multiplied by an amount that is 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 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”, or based on other relevant information, and
(iv) in the case of the Province of Ontario, the number of litres of diesel oil sold for use by farm trucks in that province, as determined by the Minister based on relevant information;
(b) average tax rate means
(i) for the purposes of subparagraph (3)(g)(i), the aggregate for the ten 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 ten provinces of the numerators of that fraction,
(ii) for the purposes of subparagraph (3)(g)(ii), the aggregate for the ten 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 as determined by the Minister based on other relevant information, or
(II) in the case of a province in which railway fuel is not taxed throughout the calendar year, or for which data are not available, 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”, or based on other relevant information, and
(B) the denominator is the aggregate for the ten provinces of the numerators of that fraction, and
(iii) for the purposes of subparagraph (3)(g)(iii), the aggregate for the ten 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, of which 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 ten provinces of the numerators of that fraction; and
(c) 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”, or as determined by the Minister based on other relevant information.
(9) For the purposes of this section,
(a) the words oil, gas and hydrocarbon have the same meaning as in the Energy Administration Act;
(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; and
(c) the expression relevant data in paragraphs (3)(p), (q) and (s) means oil production data for the calendar year ending in the fiscal year, or for the most recent calendar year for which such data are available, obtained from any of the following sources, namely,
(i) Statistics Canada,
(ii) the Department of Energy, Mines and Resources Canada,
(iii) the Petroleum Monitoring Agency, or
(iv) the provinces or any provincial energy or resource board, commission or authority.
(10) Notwithstanding paragraphs (3)(e) and (w), 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 a period of less than 12 months, the Minister may adjust the amount of those revenues in respect of that fiscal year to offset the effect, if any, of the change in accounting method.
- SOR/88-459, s. 1
- SOR/90-209, s. 1
- SOR/91-147, s. 2
7 For the purposes of these Regulations, a reference to a publication of Statistics Canada by a specific title includes a reference to any other publication of Statistics Canada published in lieu of or in substitution for that publication.
Interim Estimates
8 (1) In respect of each fiscal year in the fiscal arrangements period,
(a) the Minister 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) before the first day of March preceding the beginning of that fiscal year,
(ii) during the period beginning on the first day of September and ending on the twelfth day of October of that fiscal year,
(iii) during the period beginning on the twelfth day of January and ending on the last day of February of that fiscal year,
(iv) during the period beginning on the first day of September and ending the twelfth day of October of the first year following the end of that fiscal year,
(v) during the period beginning on the twelfth day of January and ending on the last day of February of the first year following the end of that fiscal year, and
(vi) during the period beginning on the first day of September and ending on the twelfth day of October of the second year following the end of that fiscal year; and
(b) 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, the Minister 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 beginning on the first day of March in the immediately preceding fiscal year and ending on the twelfth day of April of that fiscal year,
(ii) during the second quarter of that fiscal year,
(iii) during March of that fiscal year, and
(iv) during any period beginning on the first day of the final month of a quarter and ending on the twelfth day of the subsequent quarter, other than the times specified in paragraph (a), following the end of the fiscal year, until such time as the final computation pursuant to subsection 9(1) is completed.
(2) Where an estimate made
(a) pursuant to subparagraph (1)(a)(i) shows that an amount of fiscal equalization is 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 one twenty-fourth 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) or (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 subsequent fiscal year; and
(e) pursuant to subparagraph (1)(a)(iv), (v) or (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
(i) if any amount remains payable to the province,
(A) the Minister shall pay to the province that amount, or
(B) notwithstanding clause (A), where 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, it is established during the month of March immediately following the period referred to in that subparagraph that an amount is owing by the province to Canada by reason of an overpayment pursuant to that agreement, the Minister may pay to the province the amount remaining, if any, after setting off from the amount owing to the province the amount of that overpayment, and
(ii) if an overpayment has been made to the province,
(A) the Minister shall, subject to section 24, 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) or (vi) or (1)(b)(iv), and where the province so requests, the Minister may, notwithstanding clause (A) but subject to section 24, 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 24,
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, it is established during the month of March immediately following the period referred to in that subparagraph 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 a 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 subparagraph (1)(a)(i) or (ii) or (1)(b)(i), the Minister on the basis of population statistics made available to the Minister 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; and
(d) the provincial revenue base of each revenue source referred to 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 by the product obtained when
(i) the aggregate for the ten 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 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 precedes the year that will be used in the final computation for a fiscal year pursuant to subsection 9(1), the Minister may adjust the provincial revenue base to take account of economic factors or trends that might be expected to bring about a significant change in the provincial share of that revenue base between the year that is used in that interim estimate and the year that will be used in the final computation for that 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.
- SOR/90-209, s. 2(E)
- SOR/91-147, s. 3
Final Computation
9 (1) Subject to section 10, within thirty days following the receipt by the Minister of the certificate submitted to the Minister 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 that 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 following the end 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 set out 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 that information, to differentiate the revenue for a province
(i) between the revenue sources set out in paragraphs (e) and (f) of that definition,
(ii) between the revenue sources set out in paragraphs (g) and (h) of that definition,
(iii) between the revenue sources set out in paragraphs (i), (j) and (k) of that definition,
(iv) between the revenue sources set out in paragraphs (p) to (q) of that definition, or
(v) between the revenue sources set out in paragraphs (r) and (s) of that definition,
the Chief Statistician of Canada may aggregate in respect of that province the revenues from those revenue sources;
(b) the information required to calculate each revenue base as defined in paragraphs 6(3)(b) to (ll) 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), and
(ii) the data described in paragraphs 6(3)(m), (n), (p), (q), (s) and (ff); 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 those aggregates that are applicable to each of the revenue sources referred to in those subparagraphs.
(4) The Minister shall make the computation under subsection (1) in respect of a fiscal year on the basis of the information
(a) contained in the certificate referred to in subsection (2); and
(b) supplied to the Minister 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 referred to in subsection (2).
(5) Where, as a result of 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 made pursuant to subsection (1) discloses an overpayment to a province in respect of a fiscal year, the Minister may, subject to section 24, recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
10 Notwithstanding anything in this Part,
(a) 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 that information by Statistics Canada, provides the Minister with supplementary or additional information indicating that revisions are required in order to render the information to be published more accurate;
(b) every fiscal equalization payment made under the Act for a fiscal year is, before the expiry of the period of 30 months next following the end of the fiscal year, subject to such adjustments as, in the opinion of the Minister, are necessary to take account of new revenue data relating to those portions of the revenue sources set out in paragraphs (z) and (bb) of the definition revenue source in subsection 4(2) of the Act that relate to local government revenues and that have been received by the Minister from the Chief Statistician after the time that the certificate referred to in subsection 9(2) is submitted; and
(c) any adjustment made to a fiscal equalization payment pursuant to this section 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 defined in paragraph 5(1)(a) and the portion of those 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 total amount of the provincial personal income taxes assessed or reassessed in respect of each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial personal income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial personal income taxes;
(c) a statement showing the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from that portion of the revenue source referred to in paragraph (b) of the definition revenue source in subsection 4(2) of the Act that consists of revenues from corporation income taxes and revenues derived from government business enterprises as described in paragraph 5(1)(b) and the portion of those revenues for each such fiscal year that is received pursuant to a tax collection agreement with the Government of Canada;
(d) a statement showing the total amount of the provincial corporation income taxes assessed or reassessed in respect of each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial corporation income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial corporation income taxes;
(e) a statement of the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from each of the revenue sources described in paragraphs 5(1)(c) to (bb), (dd) and (ff);
(f) a statement providing a further breakdown of the revenues from any of the revenue sources referred to in paragraphs (a) to (e) into component taxes, fees, levies, premiums or royalties where there has been a change in the rates or structures at which those 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 following the first day of that year;
(g) a statement describing any change, and the effective date thereof, 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 at any time during the immediately preceding fiscal year following the first day of that year;
(h) 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 (g);
(i) a statement describing any change in the accounting practices in the public accounts of the province from those of the immediately preceding fiscal year; and
(j) such other information relating to the revenue-raising system of the province as the Minister may request.
- SOR/90-209, s. 3(E)
12 (1) In adjusting the revenue subject to 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 modes of raising revenue, including the following changes:
(i) the termination of an existing tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal year,
(ii) decreases, averaged over a year, in the rate of a tax, fee, levy, premium or royalty,
(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 the activity, the form of the business organization, the kind of ownership of the 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 the tax or the base to which the rate of tax of the taxpayer 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) decreases, 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) decreases in the proportion of the profits remitted to a provincial government by its own enterprises, and
(x) decreases in the charges for the rental or use of government property, including water power rentals; and
(b) subtract from the revenue 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 in the structures of provincial taxes or other modes of raising revenue, including the following changes:
(i) the introduction of a new tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal 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 the activity, the form of the business organization, the kind of ownership of the 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 the tax or the base to which the rate of tax of the taxpayer 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) increases, 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) increases in the proportion of the profits remitted to a provincial government by its own enterprises, and
(x) increases in the charges for the rental or use of government property, including water power rentals.
(2) For the purposes of this section, any change resulting from an indexation provision that has the effect of periodically changing the rate or structure of a tax as a consequence of a change in the level of prices in the economy as a whole or in the actual or deemed price of goods or services to which a particular tax applies, shall be considered to be a change in the rate or in the structure of provincial taxes or other modes of raising revenue.
13 (1) For the purposes of this Part, the total revenue derived by a province for a fiscal year from the revenue sources set out in the definition revenue source in subsection 4(2) of the Act is
(a) in the case of the revenue source set out in paragraph (a) of that definition for provinces that have entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under subsection 6(3) of the Act based on information made available to the Minister for the administration of the tax collection agreement entered into;
(b) in the case of the part of the revenue source set out in paragraph (b) of that definition that is related to corporation income taxes for provinces that have entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under subsection 6(4) of the Act based on information made available to the Minister for the administration of the tax collection agreement entered into; and
(c) in the case of any other revenue source set out in that definition and in the case of any part of the revenue sources set out in paragraphs (a) and (b) of that definition to which paragraphs (a) and (b) of this subsection do not apply, the amount as determined by the Minister based on the information made available to the Minister by the province in its application, as adjusted if necessary by the Minister, and in the certificate submitted to the Minister 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, other than from the revenue sources set out in paragraphs (a) and (b) of the definition revenue source in subsection 4(2) of the Act, the Minister may deduct from that revenue source the amounts referred to in paragraphs 5(6)(a) and (b).
(3) For the purposes of this Part, in computinq the revenue derived by a province from a revenue source, the Minister may make such adjustments as are necessary to take into account
(a) any change between the accounting practices used in the public accounts of the province in a fiscal year for which an application for a fiscal stabilization payment has been received, and those used in the province in the immediately preceding fiscal year; or
(b) any change between the methodology of Statistics Canada used for reporting revenue derived by a province from a revenue source in a fiscal year for which an application for a fiscal stabilization payment has been received and that used in the immediately preceding fiscal year.
- SOR/90-209, s. 4(E)
14 (1) A province may make an application for the payment of advances on account of fiscal stabilization payments for a fiscal year that may become payable to the province.
(2) An application referred to in subsection (1) shall be
(a) made on the basis of revenue information relating to the first five months or more of the fiscal year;
(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 structures of provincial taxes or other modes of raising revenue 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.
15 (1) The Minister may, after receiving from a province a completed application referred to in section 11 or 14 for a fiscal stabilization payment or an advance on account of such a payment, respectively, for a fiscal year, make one or more estimates of the amount, if any, that may be payable to that province under the Act and these Regulations on account of fiscal stabilization for that fiscal year.
(2) Where the Minister determines, according to an estimate made under subsection (1), that a fiscal stabilization payment may be paid to the province for the fiscal year, the Minister may make one or more interim payments to the province on account of the fiscal stabilization payment for the fiscal year, the cumulative total of which payments shall not exceed the amount calculated under subsection 6(7) of the Act.
16 (1) Any amount lent to a province pursuant to subsection 6(8) of the Act shall be repayable or recoverable in 60 equal monthly instalments, the first of which shall become due and payable 30 days after the date the amount is lent.
(2) Notwithstanding anything in this Part, where any amount is lent to a province before the last day of February of the fiscal year for which an application has been received, that amount shall be repayable or recoverable in equal monthly instalments on the first day of every month throughout the period beginning on the first day of April next following the date the amount is lent and ending five years following the date the amount is lent.
17 (1) The Minister shall make a final computation of the fiscal stabilization payment that may be paid to a province under the Act for a fiscal year within 32 months after the end of the fiscal year for which an application is made and shall provide the province with a statement describing the manner in which the amount, if any, of the fiscal stabilization payment was determined.
(2) Where the Minister determines from the final computation made under subsection (1) that the fiscal stabilization payment that may be paid to the province exceeds the total of the interim payments, if any, made pursuant to subsection 15(2), the Minister may pay to the province any amount of the excess up to the total amount of the fiscal stabilization payment calculated under subsection 6(7) of the Act.
18 Where the Minister determines at any time that an overpayment has been made to a province in respect of a fiscal stabilization payment, the amount of the overpayment may, subject to section 24 and subject to the overpayment or any part thereof being lent to the province under subsection 6(8) of the Act where that overpayment or part thereof is attributable to a decrease in the population of the province, 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.
19 (1) Notwithstanding anything in these Regulations, where it is determined at any time that an amount that has been lent to a province pursuant to subsection 6(8) of the Act exceeds the difference between the fiscal stabilization payment calculated pursuant to subsections 6(1) to (6) of the Act and the amount calculated pursuant to subsection 6(7) of the Act, the amount of the excess shall be deducted from any amount payable to the province under the Act or shall be recovered from the province as a debt due to Her Majesty in right of Canada.
(2) Any amount that is repaid by or recovered from the province pursuant to section 16 before the date of the deduction or recovery referred to in subsection (1), shall be applied to reduce the amount last determined to be the amount that would otherwise have been lent to the province under subsection 6(8) of the Act.
(3) Where an amount lent under subsection 6(8) of the Act is reduced in accordance with subsection (2), the amount of each monthly instalment due and payable pursuant to section 16 after the date of the deduction or recovery referred to in subsection (1) shall be reduced to the amount obtained when the balance of the amount owed by the province in respect of a loan made under subsection 6(8) of the Act, as determined under subsection (2), is divided by the number of instalments remaining to be paid.
PART IIIRevenue Guarantee
20 (1) The Minister may, on receiving a request in writing from a province and before making the computation referred to in section 10 of the Act, estimate, on the basis of the information available at that time, the amount, if any, of the provincial personal income tax revenue guarantee payment that may be paid to the province for the fiscal year in accordance with section 9 of the Act.
(2) The Minister may pay to the province, in the form of one or more advances, the amount estimated in accordance with subsection (1).
21 (1) At any time before making the final computation referred to in section 22, the Minister may re-estimate the amount referred to in subsection 20(1).
(2) The Minister may pay to the province any additional amount that may be paid as a result of the re-estimate referred to in subsection (1).
(3) Subject to section 24, where the Minister determines, on making the re-estimate referred to in subsection (1), that an overpayment has been made to the province under subsection 20(2), the Minister may recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
22 (1) The Minister shall, not later than 30 months after the end of a fiscal year,
(a) make a final computation of the amount, if any, of the provincial personal income tax revenue guarantee payment that may be paid to the province for the fiscal year; and
(b) provide the province with a statement describing the manner in which the amount of the payment, if any, was computed.
(2) The Minister may, within 30 days after the final computation referred to in subsection (1), pay to the province any outstanding amount that may be paid as a result of that computation.
(3) Subject to section 24, where the Minister determines, on making the final computation referred to in subsection (1), that an overpayment has been made to the province under this Part, the Minister may recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
23 For the purposes of paragraph (b) of the definition provincial personal income tax rate in section 12 of the Act, the provincial personal income tax rate applicable to a taxation year for the Province of Quebec is the quotient obtained when
(a) the total amount of the provincial personal income taxes assessed or reassessed not later than 24 months after the end of the fiscal year, as determined by the Minister based on the information made available to the Minister by the province, as if the abatements referred to in subsection 4(4) of the Act had not been provided,
is divided by
(b) the total revenue for the province determined under subparagraph 10(1)(a)(ii) of the Act.
PART IVGeneral
Maximum Recovery For Fiscal Year
24 (1) For the purposes of this section, fiscal arrangements period means the period beginning on April 1, 1977 and ending on March 31, 1992.
(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 payments, fiscal stabilization payments, revenue guarantee payments and income tax payments under tax collection agreements established in the fiscal year pursuant to the Act, the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1982, the Tax Collection Agreements and Federal Post-Secondary Education and Health Contributions Regulations, 1987, these Regulations, the tax collection agreements and the former Act in respect of all previous fiscal years, other than the overpayments determined under paragraph (b);
(b) the 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 1986 in accordance with the Statistics Act, established pursuant to the Federal-Provincial Fiscal Arrangements and Established Programs Financing Regulations, 1982 for the fiscal year beginning on April 1, 1985 or the fiscal year beginning on April 1, 1986; and
(c) the overpayments for that fiscal year in respect of fiscal equalization payments, fiscal stabilization payments, revenue guarantee payments and income tax payments under tax collection agreements.
(3) 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 paragraphs (2)(a) and (c), in excess of
(a) in the case of the fiscal year beginning on April 1, 1987, $45 per capita of the population of that province for that fiscal year;
(b) in the case of the fiscal year beginning on April 1, 1988, $50 per capita of the population of that province for that fiscal year;
(c) in the case of the fiscal year beginning on April 1, 1989, $55 per capita of the population of that province for that fiscal year;
(d) in the case of the fiscal year beginning on April 1, 1990, $60 per capita of the population of that province for that fiscal year; and
(e) in the case of the fiscal year beginning on April 1, 1991, $65 per capita of the population of that province for that fiscal year.
(4) The recovery of any balance outstanding after the aggregate recoveries referred to in subsection (3) are made shall be deferred until the following fiscal year and the Minister shall take that balance into account in the following 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 paragraphs (2)(a) and (c).
(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 following the fiscal year in respect of which aggregate recoveries are made pursuant to subsection (3) shall be recovered in the third fiscal year following the fiscal year in respect of which aggregate recoveries are made pursuant to subsection (3) and the Minister shall not take that portion into account in determining for the province referred to in subsection (3) for that third fiscal year the net total of all overpayments and underpayments referred to in paragraphs (2)(a) and (c).
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