An Act to provide for the making of certain fiscal contributions to provincesFederal-Provincial Fiscal Arrangements ActFederal-Provincial Fiscal Arrangements201303
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F-8SHORT TITLEShort titleThis Act may be cited as the Federal-Provincial Fiscal Arrangements Act.
R.S., 1985, c. F-8, s. 1;
1995, c. 17, s. 45.
INTERPRETATIONDefinitionsIn this Act,aboriginal governmentgouvernement autochtoneaboriginal government means an Indian, an Inuit or a Métis government or the “council of the band”, as defined in subsection 2(1) of the Indian Act;administration agreementaccord d’applicationadministration agreement means an agreement between the Government of Canada and the government of a province or an aboriginal government under whichthe Government of Canada will administer and enforce an Act of the legislature of the province, or legislation made by an aboriginal government, that imposes a tax and will make payments to the province or the aboriginal government in respect of the taxes collected, in accordance with the terms and conditions of the agreement, orthe government of the province will administer and enforce an Act of Parliament that imposes a tax and will make payments to the Government of Canada in respect of the taxes collected, in accordance with the terms and conditions of the agreement;fiscal yearexercicefiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year;former Actancienne loiformer Act means the Federal-Provincial Fiscal Arrangements Act, 1972, chapter 8 of the Statutes of Canada, 1972;MinisterministreMinister means the Minister of Finance;prescribedprescritprescribed means prescribed by regulations made by the Governor in Council pursuant to section 40;sales tax harmonization agreementaccord d’harmonisation de la taxe de ventesales tax harmonization agreement means an agreement or arrangement entered into by the Minister on behalf of the Government of Canada and authorized, or ratified and confirmed, under Part III.1 including any amendments or variations to the agreement or arrangement that are authorized, or ratified and confirmed, under that Part;tax collection agreementaccord de perception fiscaletax collection agreement means an agreement between the Government of Canada and the government of a province pursuant to which the Government of Canada will collect, on behalf of the province, taxes that the province imposes on the incomes of individuals or corporations, or both, and will make payments to the province in respect of the taxes so collected in accordance with the terms and conditions of the agreement.Definition of provinceIn Parts I, I.1 and II, province does not include Yukon, the Northwest Territories or Nunavut.Determination of populationFor the purposes of this Act, the population of a province, or, before April 1, 1999, of the part of the Northwest Territories that became Nunavut or the part that remained as the Northwest Territories, for a fiscal year is the population of the province or the part for that fiscal year as determined by the Chief Statistician of Canada in the prescribed manner.Determination of gross domestic productFor the purposes of this Act, the gross domestic product of Canada for a calendar year is the gross domestic product of Canada for the year as determined by the Chief Statistician of Canada in prescribed manner.References to “Act”In the definition “administration agreement” in subsection (1) and in Part III, a reference to an Act shall be read as a reference to an Act or a part thereof.
R.S., 1985, c. F-8, s. 2;
R.S., 1985, c. 11 (3rd Supp.), s. 1;
1992, c. 10, s. 1;
1993, c. 28, s. 78;
1995, c. 17, s. 46;
1996, c. 18, s. 48;
1997, c. 10, s. 261;
1998, c. 21, s. 76;
1999, c. 26, ss. 2, 12;
2002, c. 7, s. 170;
2007, c. 29, s. 61.
Previous VersionFISCAL EQUALIZATION PAYMENTSFiscal Equalization Payments to ProvincesFiscal equalization paymentSubject to the other provisions of this Act, there may be paid to a province a fiscal equalization payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014.
R.S., 1985, c. F-8, s. 3;
R.S., 1985, c. 11 (3rd Supp.), s. 2;
1992, c. 10, s. 2;
1994, c. 2, s. 1;
1999, c. 11, s. 1;
2004, c. 4, s. 1, c. 22, s. 2;
2005, c. 7, s. 1;
2006, c. 4, s. 182;
2007, c. 29, s. 62.
Previous VersionFiscal year 2007-2008The fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2007 is equal to,for Ontario, $0;for Quebec, $7,160,352,000;for Nova Scotia, $1,307,982,000;for New Brunswick, $1,476,523,000;for Manitoba, $1,825,796,000;for British Columbia, $0;for Prince Edward Island, $293,958,000;for Saskatchewan, $226,146,000;for Alberta, $0; andfor Newfoundland and Labrador, $477,374,000.
2007, c. 29, s. 62.
Fiscal year 2009–2010Subject to subsection 3.7(3), the fiscal equalization payment that may be paid to a province for the fiscal year beginning on April 1, 2009 is equal to,for Ontario, $347,029,000;for Quebec, $8,354,501,000;for Nova Scotia, $1,390,747,000;for New Brunswick, $1,689,410,000;for Manitoba, $2,063,394,000;for British Columbia, $0;for Prince Edward Island, $339,919,000;for Saskatchewan, $0;for Alberta, $0; andfor Newfoundland and Labrador, $0.
2009, c. 2, s. 383.
Additional fiscal equalization paymentAn additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2010 equal to,for Nova Scotia, $250,405,000;for New Brunswick, $80,300,000;for Manitoba, $175,494,000; andfor Prince Edward Island, $3,304,000.Additional fiscal equalization payment — 2011-2012 fiscal yearAn additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2011 equal to,for Quebec, $368,932,000;for Nova Scotia, $157,591,000;for New Brunswick, $149,776,000; andfor Manitoba, $275,808,000.Additional fiscal equalization payment — 2012-2013 fiscal yearAn additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2012 equal to,for Quebec, $362,127,000;for Nova Scotia, $13,471,000;for New Brunswick, $102,767,000; andfor Manitoba, $201,295,000.
2010, c. 12, s. 1646;
2011, c. 15, s. 27;
2012, c. 19, s. 390.
Previous VersionGeneral ruleSubject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year beginning after March 31, 2008 is the amount, as determined by the Minister, equal to the greater ofthe amount determined by the formula(A + B) × CwhereAis the aggregate of the amounts obtained by subtracting, for each revenue source except the one referred to in paragraph (e) of the definition revenue source in subsection 3.5(1), the average annual per capita yield in that province for the revenue source for that fiscal year from the average annual per capita national yield for the revenue source for that fiscal year,Bis 50% of the amount obtained by subtracting, for the revenue source referred to in paragraph (e) of the definition revenue source in subsection 3.5(1), the average annual per capita revenue to be equalized for that province for that fiscal year from the average annual per capita national revenue to be equalized for that fiscal year, andCis the average annual population of that province for that fiscal year, andthe amount determined by the formulaA × CwhereAand C have the same meaning as in paragraph (a).Province may elect otherwiseDespite subsection (1), a province may elect, at the prescribed time and in the prescribed manner, that the fiscal equalization payment that may be paid to that province for a fiscal year be equal to the amount determined by the formula set out in paragraph (1)(a).Negative amountFor the purposes of this Part, if the amount of a fiscal equalization payment computed in accordance with subsection (1) or (2) is negative, that amount is considered to be zero.Fiscal year 2009–2010Despite subsections (1) and (2), for the fiscal year beginning on April 1, 2009, the fiscal equalization payment that would be received by Nova Scotia or Newfoundland and Labrador, as the case may be, if the amount of that payment were determined in accordance with this section is $1,645,198,000 for Nova Scotia and $856,986,000 for Newfoundland and Labrador.
2007, c. 29, s. 62;
2009, c. 2, s. 384.
Previous VersionTransitional payments — British ColumbiaThe Minister may pay to British Columbia a transitional fiscal equalization payment, for any fiscal year in the period beginning on April 1, 2008 and ending on March 31, 2010, that is equal to the amount by whichthe amount of the fiscal equalization payment that would be computed for that province for that fiscal year in accordance with subsection 3.2(1) — or subsection 3.2(2) if the election described in that subsection is made — if, in computing the amount of that payment, that province’s revenue base in respect of the revenue source referred to in paragraph (d) of the definition revenue source in subsection 3.5(1) were determined in the manner set out in the regulations made for the purposes of this sectionis greater thanthe amount of the fiscal equalization payment that is computed for that province for that fiscal year in accordance with subsection 3.2(1) or subsection 3.2(2), as the case may be.
2007, c. 29, s. 62.
Less than 50% of populationIf the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is less than 50% of the aggregate of the average annual population of all provinces for that fiscal year and if the amount that may be paid to a province for that fiscal year under section 3.2 would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita equalized fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a), the fiscal equalization payment that may be paid to that province for that fiscal year determined under section 3.2 shall be reduced by the amount determined by the formula(A – B) × CwhereAis the total per capita fiscal capacity of that province for that fiscal year;Bis the per capita equalized fiscal capacity for that fiscal year of the province that has the lowest per capita equalized fiscal capacity for that fiscal year and that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a); andCis the average annual population of that province for that fiscal year.50% or more of populationIf the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is 50% or more of the aggregate of the average annual population of all provinces for that fiscal year, the fiscal equalization payment that may be paid to a province for that fiscal year determined under section 3.2 shall be reduced by the greater of the following amounts:zero, andthe amount determined by the formula(A – B) × CwhereAis the total per capita fiscal capacity of that province for that fiscal year,Bis the quotient obtained by dividing the aggregate of the equalized fiscal capacity of all provinces to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), by the aggregate of the average annual population of all of those provinces for that fiscal year, andCis the average annual population of that province for that fiscal year.Re-calculationIf, as a result of the application of subsection (2), the amount of the fiscal equalization payment that may be paid to any province for a fiscal year is reduced to zero, that subsection applies again, but the description of B in that subsection does not include, for that fiscal year, the equalized fiscal capacity and the average annual population of any province to which the amount of the fiscal equalization payment is reduced to zero.Multiple applicationsFor greater certainty, subsection (3) applies after each application of subsection (2).Aggregate paymentThe aggregate of the fiscal equalization payments that would be paid for a fiscal year beginning after March 31, 2010, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), shall be equal to the amount determined by the formulaA × (1 + B)whereAis, for the fiscal year beginning on April 1, 2010, $14,185,000,000 and, for a fiscal year beginning after March 31, 2011, the amount determined under this subsection for the previous fiscal year; andBis the average of the annual rates of growth of the nominal gross domestic product of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years.CalculationIf the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), exceeds the amount determined under subsection (5), the fiscal equalization payment that may be paid to a province for that fiscal year determined under subsections (1) to (4) and section 3.2 shall be reduced by the amount determined by the formulaA × BwhereAis the lesser of the per capita equalization payment for that province for that fiscal year and the per capita reduction; andBis the average annual population of that province for that fiscal year.Per capita calculationFor the purposes of subsection (6), the Minister shall determine the per capita reduction for a fiscal year and shall, in making that determination, ensure that the aggregate of the reductions referred to in that subsection is equal to the amount determined by the formulaA – BwhereAis the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2); andBis the amount determined under subsection (5).Adjustment paymentIf the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), is less than the amount determined under subsection (5), there may be paid to a province for that fiscal year an adjustment payment that is,in the case of a province to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under subsections (1) to (4) and section 3.2, the amount determined by the formulaA × BwhereAis the per capita adjustment for that fiscal year, andBis the average annual population of that province for that fiscal year; andin any other case, the greater of zero and the amount determined by the formula(C + D – E) × FwhereCis the per capita pre-adjustment equalized fiscal capacity for that fiscal year of the province that has the greatest per capita pre-adjustment equalized fiscal capacity for that fiscal year of the provinces referred to in paragraph (a),Dis the per capita adjustment for that fiscal year,Eis the per capita pre-adjustment equalized fiscal capacity of the province in question for that fiscal year, andFis the average annual population of the province in question for that fiscal year.Per capita adjustmentFor the purposes of subsection (8), the Minister shall determine the per capita adjustment for a fiscal year and shall, in making that determination, ensure that the aggregate of the adjustment payments referred to in that subsection is equal to the amount determined by the formulaA – BwhereAis the amount determined under subsection (5); andBis the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2).Section 3.6No adjustment payment shall be paid for a fiscal year to a province to which section 3.6 applies for that fiscal year.
2007, c. 29, s. 62;
2009, c. 2, s. 385.
Previous VersionInterpretationThe following definitions apply in this section and in sections 3 to 3.4.average annual per capita national revenue to be equalizedrevenu national annuel moyen sujet à péréquation par habitantaverage annual per capita national revenue to be equalized means, for a fiscal year for a revenue source, the amount determined by the formula(A/2 + B/4 + C/4) / DwhereAis the national revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;Bis the national revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;Cis the national revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; andDis the aggregate of the average annual population of all provinces for that fiscal year.average annual per capita national yieldrendement national annuel moyen par habitantaverage annual per capita national yield means, for a revenue source for a fiscal year, the amount determined by the formula(A/2 + B/4 + C/4) / DwhereAis the national yield for that revenue source for the fiscal year that is two years prior to that fiscal year;Bis the national yield for that revenue source for the fiscal year that is three years prior to that fiscal year;Cis the national yield for that revenue source for the fiscal year that is four years prior to that fiscal year; andDis the aggregate of the average annual population of all provinces for that fiscal year.average annual per capita revenue to be equalizedrevenu annuel moyen sujet à péréquation par habitantaverage annual per capita revenue to be equalized means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula(A/2 + B/4 + C/4) / DwhereAis the revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;Bis the revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;Cis the revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; andDis the average annual population of that province for that fiscal year.average annual per capita yieldrendement annuel moyen par habitantaverage annual per capita yield means, in respect of a province for a revenue source for a fiscal year, an amount determined by the formula(A/2 + B/4 + C/4) / DwhereAis the yield for that revenue source for the fiscal year that is two years prior to that fiscal year;Bis the yield for that revenue source for the fiscal year that is three years prior to that fiscal year;Cis the yield for that revenue source for the fiscal year that is four years prior to that fiscal year; andDis the average annual population of that province for that fiscal year.average annual populationpopulation annuelle moyenneaverage annual population means, in respect of a province for a fiscal year, the amount determined by the formulaA/2 + B/4 + C/4whereAis the population of that province for the fiscal year that is two years prior to that fiscal year;Bis the population of that province for the fiscal year that is three years prior to that fiscal year; andCis the population of that province for the fiscal year that is four years prior to that fiscal year.equalized fiscal capacitycapacité fiscale après péréquationequalized fiscal capacity means, in respect of a province for a fiscal year, the product obtained by multiplying the per capita equalized fiscal capacity of that province for that fiscal year by the average annual population of that province for that fiscal year.national average rate of taxtaux d’imposition national moyennational average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces.national revenue to be equalizedrevenu national sujet à péréquationnational revenue to be equalized means, in respect of a revenue source for a fiscal year, the amount equal to the aggregate of the revenue to be equalized for that revenue source for that fiscal year for all provinces.national yieldrendement nationalnational yield means, for a revenue source for a fiscal year, the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by the aggregate revenue base of all provinces in respect of that revenue source for that fiscal year. per capita equalization paymentpaiement de péréquation par habitantper capita equalization payment means, in respect of a province for a fiscal year, the quotient obtained by dividing the fiscal equalization payment that would be paid to that province for that fiscal year, if the amount of that payment were determined under section 3.2 and subsections 3.4(1) to (4) as if that province had not made an election under subsection 3.2(2), by the average annual population of that province for that fiscal year.per capita equalized fiscal capacitycapacité fiscale par habitant après péréquationper capita equalized fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formulaA + B + (C / F)whereA,B and F have the same meaning as the descriptions of A, B and F, respectively, in the definition total per capita fiscal capacity; andCis any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a).per capita pre-adjustment equalized fiscal capacitycapacité fiscale par habitant après péréquation et avant rajustementper capita pre-adjustment equalized fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formulaA + B + C + [(D + E) / F]whereA,B, D, E and F have the same meaning as the descriptions of A, B, D, E and F, respectively, in the definition total per capita fiscal capacity; andCis the per capita equalization payment for that province for that fiscal year.revenue baseassietterevenue base means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.revenue sourcesource de revenurevenue source means any of the following sources from which provincial revenues are or may be derived:revenues relating to personal income;revenues relating to business income;revenues relating to consumption;revenues derived from property taxes and miscellaneous revenues; andrevenues derived from natural resources.revenue to be equalizedrevenu sujet à péréquationrevenue to be equalized means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations.total per capita fiscal capacitycapacité fiscale totale par habitanttotal per capita fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formulaA + B + [(C + D + E) / F]whereAis the aggregate of that province’s average annual per capita yield for each revenue source, except the one referred to in paragraph (e) of the definition revenue source, for that fiscal year;Bis that province’s average annual per capita revenue to be equalized, for the revenue source referred to in paragraph (e) of the definition revenue source, for that fiscal year;Cis any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined in accordance with section 3.2 — or, in the case of British Columbia, sections 3.2 and 3.3 — without regard to section 3.4;Dis, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act;Eis, with respect to Nova Scotia or Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year in accordance with sections 7, 8, 10 to 14, 21, 22, and 24 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act; andFis the average annual population of that province for that fiscal year.yieldrendementyield means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base for that revenue source for that fiscal year.Deduction in computing revenue to be equalizedIn computing the revenue to be equalized from the revenue source described in paragraph (a) of the definition revenue source in subsection (1) for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.Municipal property taxes and miscellaneous revenues and taxesFor the purpose of determining the revenue to be equalized derived by a province for a fiscal year, in the case of the part of the revenue source referred to in paragraph (d) of the definition revenue source in subsection (1) that consists of local government property taxes and revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year is deemed to be revenue derived by that province from that revenue source for that fiscal year.
2007, c. 29, s. 62, c. 35, s. 161;
2009, c. 2, s. 386.
Previous VersionNova Scotia and Newfoundland and LabradorComputation of fiscal equalization paymentsThe fiscal equalization payment that may be paid to Nova Scotia and the fiscal equalization payment that may be paid to Newfoundland and Labrador, for each fiscal year beginning after March 31, 2008, is the amount, as determined by the Minister, equal to the amount determined by the formula(A - B) × CwhereAis the per capita equalization standard for that fiscal year;Bis the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year; andCis the average annual population of that province for that fiscal year.Per capita equalization standardFor the purposes of subsection (1), the Minister shall determine the per capita equalization standard for a fiscal year as if, for that fiscal year, the amount of the fiscal equalization payment that may be paid to all provinces were computed in the manner described in that subsection and shall, in making that determination, ensure thatthe amount determined by the following formula would be the same with respect to every province that would receive a fiscal equalization payment:A + (B / C)whereAis the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,Bis the amount of the fiscal equalization payment that would be received by that province for that fiscal year, andCis the average annual population of that province for that fiscal year; andthe aggregate of the fiscal equalization payments that may be paid to the provinces for that fiscal year would be equal to,for the fiscal year beginning on April 1, 2005, $10,900,000,000,for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, andfor each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.
2007, c. 29, s. 62.
Election for fiscal year 2007-2008The Minister of Finance of Nova Scotia or of Newfoundland and Labrador, as the case may be, may elect, for the fiscal year beginning on April 1, 2007, that the fiscal equalization payment that may be paid to that province be equal to $1,464,528,000 for Nova Scotia and $520,510,000 or $732,462,000 for Newfoundland and Labrador, rather than the amount set out under section 3.1. The election must be communicated to the Minister in writing on or before March 1, 2008.Effect — election by Newfoundland and LabradorIf Newfoundland and Labrador elects to receive, under subsection (1), $520,510,000, that province is considered to have made the election under subsection 3.2(2).Election for subsequent fiscal yearsNova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that provincefor the fiscal year beginning on April 1, 2008, be determined under sections 3.2 and 3.4 as they read immediately before the day on which this subsection comes into force, rather than under subsection 3.6(1);for the fiscal year beginning on April 1, 2009, be the amount set out in section 3.11, rather than the amount determined under subsection 3.6(1); orfor any fiscal year beginning after March 31, 2010, be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1).Deemed election — Nova ScotiaNova Scotia is deemed, on the day on which this subsection comes into force, to have made the election under subsection (3) in respect of the fiscal year beginning on April 1, 2008.Effect of electionAs soon as a province makes the election under subsection (3), section 3.6 ceases to apply to that province.
2007, c. 29, s. 62, c. 35, s. 162;
2009, c. 2, s. 387.
Previous VersionAdditional fiscal equalization paymentIf a province makes the election under subsection 3.7(3), an additional fiscal equalization payment for the period referred to in subsection (3) may be paid to that province equal to the amount by whichthe aggregate of the following amounts:the aggregate of the fiscal equalization amounts computed under section 3.72 for that province for all fiscal years in the period,the aggregate of the amounts that would be paid to that province for all fiscal years in the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, andsubject to subsection (2), the aggregate of the amounts, with respect to Newfoundland and Labrador, that would be paid to that province for all fiscal years in the period under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act, as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year, and computed in accordance with subsection 174(3) of the Budget and Economic Statement Implementation Act, 2007 if the conditions described in that subsection are met,is greater thanthe aggregate of the following amounts:the aggregate of the fiscal equalization payments paid to that province for the period,the aggregate of the amounts paid to that province for the period in accordance with sections 7 to 14 and 21 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, andthe aggregate of the amounts, with respect to Newfoundland and Labrador, paid to that province for the period under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act.DeemingFor each fiscal year for which subsection 3.72(4) applies to Newfoundland and Labrador by reason of paragraph 3.72(6)(a), the amount that would be paid to that province under Part V of the Canada-Newfoundland Atlantic Accord Implementation Act is deemed to be zero for the purpose of subparagraph (1)(a)(iii).Definition of periodFor the purpose of subsection (1), period means the period beginning on April 1 of the first fiscal year in respect of which the province makes the election under subsection 3.7(3) and ending on the earlier ofin the case ofNova Scotia, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act, andNewfoundland and Labrador, March 31 of the fiscal year preceding the first fiscal year with respect to which it does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act, andMarch 31, 2020.
2007, c. 35, s. 163.
Fiscal equalization amountFor the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average ofthe greater of zero and the amount determined by the formula(A - B) × CwhereAis the per capita equalization standard for that fiscal year,Bis the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, andCis the average annual population of that province for that fiscal year, andthe amount determined by the formulaD × [(E - F) × G] / HwhereDisfor the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, andfor each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035,Eis the five-province per capita equalization standard for that fiscal year determined under subsection (3),Fis the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,Gis the average annual population of that province for that fiscal year, andHis the aggregate of the amount for each of the provinces determined by the formula(I - J) × KwhereIis the five-province per capita equalization standard for that fiscal year determined under subsection (3),Jis the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal year, andKis the average annual population of the province for that fiscal year.Clarification — paragraph (1)(a)For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure thatthe amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero:A + (B / C)whereAis the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,Bis the fiscal equalization amount for that province for that fiscal year, andCis the average annual population of that province for that fiscal year; andthe aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal tofor the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, andfor each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.Clarification — paragraph (1)(b)For the purposes of paragraph (1)(b),the five-province per capita equalization standard for a fiscal year is the amount determined by the formula(A + B + C + D + E ) / FwhereAis the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year,Bis the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year,Cis the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year,Dis the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of British Columbia for that fiscal year,Eis the product of the average annual population of Saskatchewan for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Saskatchewan for that fiscal year, andFis the aggregate of the average annual population for that fiscal year of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan;if, for a province, the value determined for F in paragraph (1)(b) is greater than the value determined for E in that paragraph, the difference between those values in relation to that province is deemed to be zero; andif, for a province, the value determined for J in the description of H in paragraph (1)(b) is greater than the value determined for I in that description, the difference between those values in relation to that province is deemed to be zero.Adjustment of revenue to be equalizedSubject to subsections (5) and (6), if, for a fiscal year, the fiscal equalization amount for a province determined under subsection (1) is greater than zero and that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.Nova ScotiaFor the purpose of calculating the additional fiscal equalization payment that may be paid to Nova Scotia under subsection 3.71(1),subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); andsubsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5).Newfoundland and LabradorFor the purpose of calculating the additional fiscal equalization payment that may be paid to Newfoundland and Labrador under subsection 3.71(1),subsection (4) applies to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(3) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); andsubsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years for which that province makes the election under subsection 3.9(5).
2007, c. 35, s. 163.
Fiscal year 2012-2013 and laterFor a fiscal year beginning after March 31, 2012, the fiscal equalization payment that may be paid to Nova Scotia or Newfoundland and Labrador, as the case may be, shall be determined under sections 3.2 and 3.4 and not subsection 3.6(1) if, for that fiscal year,in the case of Nova Scotia, the province does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act; andin the case of Newfoundland and Labrador, the province does not meet the conditions under paragraphs 26(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 28 of that Act.Effect for subsequent fiscal yearsAs soon as, under subsection (1), the fiscal equalization payment that may be paid for a fiscal year to Nova Scotia or to Newfoundland and Labrador, as the case may be, is to be determined under sections 3.2 and 3.4, section 3.6 ceases to apply to that province.
2007, c. 29, s. 62.
InterpretationThe following definitions apply in this section and in sections 3.6 to 3.8.average annual per capita yieldrendement annual moyen par habitantaverage annual per capita yield means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula(A + B + C) / (D + E + F)whereAis the yield for that revenue source for the fiscal year that is one year prior to that fiscal year;Bis the yield for that revenue source for the fiscal year that is two years prior to that fiscal year;Cis the yield for that revenue source for the fiscal year that is three years prior to that fiscal year;Dis the population of that province for the fiscal year that is one year prior to that fiscal year;Eis the population of that province for the fiscal year that is two years prior to that fiscal year; andFis the population of that province for the fiscal year that is three years prior to that fiscal year.average annual populationpopulation annuelle moyenneaverage annual population means, in respect of a province for a fiscal year, the amount determined by the formula(A + B + C) / 3whereAis the population of that province for the fiscal year that is one year prior to that fiscal year;Bis the population of that province for the fiscal year that is two years prior to that fiscal year; andCis the population of that province for the fiscal year that is three years prior to that fiscal year.average annual revenue baseassiette annuelle moyenneaverage annual revenue base means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula(A + B + C) / 3whereAis the revenue base for the fiscal year that is one year prior to that fiscal year;Bis the revenue base for the fiscal year that is two years prior to that fiscal year; andCis the revenue base for the fiscal year that is three years prior to that fiscal year.national average rate of taxtaux d’imposition national moyennational average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces.revenue baseassietterevenue base means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.revenue sourcesource de revenurevenue source means any of the following sources from which provincial revenues are or may be derived:personal income taxes;corporation income taxes, and revenues derived from government business enterprises that are not included in any other paragraph of this definition;taxes on capital of corporations;general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes;tobacco taxes;motive fuel taxes derived from the sale of gasoline;motive fuel taxes derived from the sale of diesel fuel;non-commercial motor vehicle licensing revenues;commercial motor vehicle licensing revenues;alcoholic beverage revenues;hospital and medical care insurance premiums;forestry revenues fromcrown lands, andprivate lands;conventional new oil revenues;conventional old oil revenues;heavy oil revenues;mined oil revenues;light and medium third tier oil revenues;heavy third tier oil revenues;revenues from domestically sold natural gas and exported natural gas;sales of Crown leases and reservations on oil and natural gas lands;oil and gas revenues other than those described in paragraphs (m) to (t);mining revenues;water power rentals;insurance premium taxes;payroll taxes;provincial and local government property taxes;race track taxes;revenues from lottery ticket sales;revenues, other than those described in paragraphs (z.1) and (z.2), from games of chance;miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government rev-enues from sales of goods and services, and miscellaneous local government taxes and revenues; andrevenues of the Government of Canada from any of the following sources that are shared by Canada with a province:Newfoundland and Labrador offshore revenues,Nova Scotia offshore revenues, andrevenues from any other source referred to in this definition.revenue to be equalizedrevenu sujet à péréquationrevenue to be equalized means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations.yieldrendementyield means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base in respect of that revenue source for that fiscal year.Deduction in computing revenue to be equalizedIn computing the revenue to be equalized from personal incomes taxes — referred to in paragraph (a) of the definition revenue source in subsection (1) — for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.Municipal property taxes and miscellaneous revenues and taxesFor the purpose of determining the revenue to be equalized derived by a province for a fiscal year from the revenue sources referred to in paragraphs (a) and (b), the following are deemed to be revenues derived by that province for that fiscal year from those revenue sources:in the case of the part of the revenue source referred to in paragraph (z) of the definition revenue source in subsection (1) that consists of local government property taxes, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to levy property taxes for the financial year of each such local authority ending in that fiscal year; andin the case of the part of the revenue source referred to in paragraph (z.4) of the definition revenue source in subsection (1) that consists of local government revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year.Adjustment of revenue to be equalizedSubject to subsection (5), if, for a fiscal year, a province would be entitled to receive a fiscal equalization payment under section 3.6, computed as if that section applied to that province, and if that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.ElectionIn order for subsection (4) to apply to Nova Scotia or to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection (1), Nova Scotia or Newfoundland and Labrador, as the case may be, shall make an election at the prescribed time and in the prescribed manner.Validity of electionAn election under subsection (5) by Nova Scotia or Newfoundland and Labrador in respect of a fiscal year is not valid if it has made an election under subsection 3.7(3) for that fiscal year or any previous fiscal year or if it makes an election under subsection 3.7(3) for that fiscal year.Effect of election under subsection (5)Despite any provision of the Canada-Newfoundland Atlantic Accord Implementation Act, if Newfoundland and Labrador makes the election described in subsection (5) for a fiscal year, the fiscal equalization offset payment that may otherwise be payable to the province under that Act is, for that fiscal year, zero.
2007, c. 29, s. 62, c. 35, s. 164;
SOR/2008-318, s. 1.
Previous VersionGeneralTime of calculation — ss. 3.2 to 3.4At a time determined by the Minister, no later than three months before the beginning of a fiscal year, the Minister shall calculatethe fiscal equalization payment that may be paid to a province under sections 3.2 to 3.4 for that fiscal year on the basis that the province makes an election under subsection 3.2(2) for that fiscal year; andthe fiscal equalization payment that may be paid to the province under those sections for that fiscal year on the basis that the province does not make an election under that subsection for that fiscal year.DeemingSubsection (1) applies to Nova Scotia and Newfoundland and Labrador as if sections 3.2 to 3.4 applied to each of those provinces.Time of calculation — s. 3.6At a time determined by the Minister, no later than three months before the end of a fiscal year, the Minister shall calculatethe fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that both make an election under subsection 3.9(5) for that fiscal year;the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Nova Scotia makes an election under subsection 3.9(5) for that fiscal year;the fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that only Newfoundland and Labrador makes an election under subsection 3.9(5) for that fiscal year; andthe fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador under section 3.6 for that fiscal year on the basis that neither makes an election under subsection 3.9(5) for that fiscal year.CessationSubsection (3) ceases to apply in respect of Nova Scotia or Newfoundland and Labrador if section 3.6 ceases to apply in respect of that province.Time of calculation — s. 3.72The fiscal equalization amounts referred to in section 3.72 for a fiscal year shall be calculated no later than three months before the end of the fiscal year.
2007, c. 29, s. 62, c. 35, s. 165.
Previous VersionUnderpaymentIf the Minister determines that the Minister has underpaid any amounts payable to a province under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that province an amount equal to the underpayment.
2007, c. 29, s. 62, c. 35, s. 165.
Previous VersionOverpaymentIf the Minister determines that the Minister has overpaid any amounts paid to a province under this Part, the Minister may recover the amount of that overpaymentwithin the prescribed time and in the prescribed manner, from any amount payable under this Act to that province; orfrom that province as a debt due to Her Majesty in right of Canada.
2007, c. 29, s. 62, c. 35, s. 165.
Previous VersionTime and manner of paymentsThere may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate.
2007, c. 29, s. 62.
RecoveryIf the Minister has made a payment to a province under subsection 4.2(1) of this Act as it read on the day before the day on which this section comes into force, the Minister shall, in the prescribed amounts, reduce the fiscal equalization payments to that province for the fiscal years in the period beginning on April 1, 2007 and ending on March 31, 2016. If, on March 31, 2016, the total amount of that payment has not been recovered, the Minister may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to that province pursuant to this Act or any other Act of Parliament.
2007, c. 29, s. 62.
Day of electionAn election under this Part is deemed to have been made on the day on which the election is received by the Minister.
2007, c. 35, s. 166.
Deeming — final computationFor the purpose of the Canada-Newfoundland Atlantic Accord Implementation Act and the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act, the final computation of the amount of the fiscal equalization payment for a fiscal year is deemed to have been made on March 31 of that fiscal year.
2007, c. 35, s. 166.
OTHER PAYMENTSPayments — Ontario and Prince Edward IslandThere may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, the following sums for the fiscal year beginning April 1, 2011:to Ontario, $150,365,000; andto Prince Edward Island, $1,089,000.RecoveryIf the Minister has made a payment to a province under subsection (1), he or she shall reduce, by an amount equal to 1/10 of that payment, the fiscal equalization payments to that province for each of the fiscal years in the period beginning on April 1, 2012 and ending on March 31, 2022. If, for one of those fiscal years, it is not possible to reduce the fiscal equalization payment by that entire amount, he or she may recover the amount remaining as a debt due to Her Majesty in right of Canada out of any sum of money that may be due or payable by Her Majesty in right of Canada to that province under this Act for that fiscal year.
2011, c. 15, s. 28.
TERRITORIAL FINANCINGInterpretationDefinitionsThe following definitions apply in this Part.eligible revenuesrevenus admissibleseligible revenues means, in respect of a territory for a fiscal year, the amount equal to the product obtained by multiplying the fiscal capacity of that territory for that fiscal year by 0.70.fiscal capacitycapacité fiscalefiscal capacity means, in respect of a territory for a fiscal year, the amount determined by the formula(A + B + C) / 3 + DwhereAis the aggregate of the yields in that territory for each revenue source for the fiscal year that is two years prior to that fiscal year;Bis the aggregate of the yields in that territory for each revenue source for the fiscal year that is three years prior to that fiscal year;Cis the aggregate of the yields in that territory for each revenue source for the fiscal year that is four years prior to that fiscal year; andDis the revenue block for that fiscal year.gross expenditure basebase des dépenses brutesgross expenditure base means,for the fiscal year beginning on April 1, 2006, an amount equal to$593,265,276 in respect of Yukon,$922,797,073 in respect of the Northwest Territories, and$931,390,618 in respect of Nunavut; andin respect of a territory, for each subsequent fiscal year, an amount determined by the formula(A × B) + CwhereAis the amount determined to be the gross expenditure base for that territory for the fiscal year preceding that fiscal year,Bis the population adjusted gross expenditure escalator for that territory for that fiscal year, andCis the gross expenditure base adjustment determined under paragraph 4.2(a) for that territory for that fiscal year.national average rate of taxtaux d’imposition national moyennational average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces and territories by the revenue base in respect of that revenue source for that fiscal year for all provinces and territories. population adjusted gross expenditure escalatorfacteur de majoration des dépenses brutes rajustées en fonction de la populationpopulation adjusted gross expenditure escalator means, in respect of a territory for a fiscal year, a factor equal to the product obtained by multiplying the population adjustment factor for that territory for the fiscal year that is two years prior to that fiscal yearbythe provincial local government expenditure index for the fiscal year that is two years prior to that fiscal year.population adjustment factorfacteur de rajustement en fonction de la populationpopulation adjustment factor means, in respect of a territory for a fiscal year, the measure of the population growth of that territory relative to the population growth of Canada and may be defined more particularly by the regulations.provincial local government expenditure indexindice provincial des dépenses des administrations localesprovincial local government expenditure index means, for a fiscal year, the measure of changes in provincial and territorial government spending on programs and services and may be defined more particularly by the regulations.revenue baseassietterevenue base means, in respect of a revenue source for a territory for a fiscal year, the measure of the relative capacity of that territory to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations.revenue blockbloc de revenusrevenue block means,for the fiscal year beginning on April 1, 2006, an amount equal to$54,530,841 in respect of Yukon,$107,538,446 in respect of the Northwest Territories, and$89,338,774 in respect of Nunavut; andin respect of a territory, for each subsequent fiscal year, the amount equal to the product obtained by multiplying the amount of the revenue block for the previous fiscal year for that territory by 1.02.revenue sourcesource de revenurevenue source means any of the following sources from which territorial revenues are or may be derived: revenues derived from personal income;revenues derived from corporate income and government business enterprises;revenues derived from tobacco;revenues derived from motive fuel taxes from the sale of gasoline;revenues derived from motive fuel taxes from the sale of diesel fuel;revenues derived from the sale of alcoholic beverages; andrevenues derived from payroll taxes.revenue to be equalizedrevenu sujet à péréquationrevenue to be equalized, in respect of a revenue source for a territory for a fiscal year, means the revenue, as determined by the Minister, derived by that territory for that fiscal year from that revenue source and may be defined more particularly by the regulations.superannuation adjustmentmontant de l’indexation des pensionssuperannuation adjustment means,for the fiscal year beginning on April 1, 2006, an amount equal to$12,471,453 with respect to Yukon,$18,340,573 with respect to the Northwest Territories, and$11,108,311 with respect to Nunavut; andin respect of a territory, for each subsequent fiscal year, the amount determined by the Minister of Public Works and Government Services to be equal to, with respect to the fiscal year that is two years prior to that fiscal year, the difference between the amount of the superannuation contribution that is payable by that territory under the Public Service Superannuation Act and the amount that would be payable by that territory under that Act as it read on June 16, 1999.yieldrendementyield means, in respect of a territory for a revenue source for a fiscal year, an amount equal to the aggregate of the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that territory’s revenue base in respect of that revenue source for that fiscal year, andthe yield adjustment determined under paragraph 4.2(b) for that fiscal year.Determination of gross expenditure baseFor the purposes of the definition gross expenditure base in subsection (1), the amount determined to be the gross expenditure base in respect of a territory for any preceding fiscal year may be recalculated by the Minister at any time to take into account changes to the prescribed data relating to the population adjusted gross expenditure escalator.
R.S., 1985, c. F-8, s. 4;
R.S., 1985, c. 11 (3rd Supp.), s. 3;
1992, c. 10, s. 3;
1994, c. 2, s. 2;
1999, c. 11, s. 2;
2001, c. 19, s. 1;
2003, c. 15, s. 3;
2004, c. 4, s. 2, c. 22, s. 3;
2005, c. 7, s. 1;
2007, c. 29, s. 62.
Previous VersionTerritorial Formula Financing PaymentsTerritorial formula financing paymentsSubject to the other provisions of this Act, there may be paid to a territory a territorial formula financing payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2014.Fiscal year 2007-2008The territorial formula financing payment that may be paid to a territory for the fiscal year beginning on April 1, 2007 is equal to,for Yukon, $540,095,000;for the Northwest Territories, $788,350,000; andfor Nunavut, $892,852,000.Subsequent fiscal yearsSubject to the other provisions of this Part, the territorial formula financing payment that may be paid to a territory for a fiscal year beginning after March 31, 2008 is equal to the amount, as determined by the Minister, by whichthe aggregate of the gross expenditure base and the superannuation adjustment for that territory for that fiscal yearis greater thanthe eligible revenues for that territory for that fiscal year.
2004, c. 22, s. 4;
2005, c. 7, s. 1;
2006, c. 4, s. 183;
2007, c. 29, s. 62.
Previous VersionGeneralPowers of the MinisterThe Minister may determine, in respect of a territory for a fiscal year,the amount of the gross expenditure base adjustment, in order to reflecta transfer of responsibilities between Canada and the government of a territory or the government of a territory and an aboriginal government,the signing of land claims, comprehensive land claims or self-government agreements with aboriginal governments, andpersonal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon; andthe amount of the yield adjustment, in order to reflectpersonal income tax room sharing agreements between the government of Yukon and an aboriginal government in Yukon,federal statutory limitations on territo-rial revenue raising capacity, andany fiscal capacity adjustments made, in respect of the Northwest Territories, for the fiscal years in the period beginning on April 1, 2004 and ending on March 31, 2006.
2004, c. 22, s. 4;
2005, c. 7, s. 1;
2007, c. 29, s. 62.
Previous VersionTime of calculationThe territorial formula financing payment payable to a territory for a fiscal year shall be calculated, at a time determined by the Minister, no later than three months before that fiscal year begins.
2004, c. 22, s. 4;
2005, c. 7, s. 1;
2007, c. 29, s. 62.
Previous Version[Repealed, 2007, c. 29, s. 62]Previous VersionUnderpaymentIf the Minister determines that the Minister has underpaid any amounts payable to a territory under this Part, the Minister may, within the prescribed time and in the prescribed manner, pay that territory an amount equal to the underpayment.
2005, c. 7, s. 1;
2006, c. 4, s. 185;
2007, c. 29, s. 62, c. 35, s. 167.
Previous VersionOverpaymentIf the Minister determines that the Minister has overpaid any amounts paid to a territory under this Part, the Minister may recover the amount of that overpaymentwithin the prescribed time and in the prescribed manner, from any amount payable under this Act to that territory; orfrom that territory as a debt due to Her Majesty in right of Canada.
2005, c. 7, s. 1;
2007, c. 29, s. 62, c. 35, s. 167.
Previous VersionTime and manner of paymentsThere may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, any amounts authorized to be paid by this Part at the times and in the manner that the Minister considers appropriate.
2005, c. 7, s. 1;
2007, c. 29, s. 62.
Previous VersionRecovery — YukonThe Minister may recover, from any amount payable under this Part to Yukon, the amount, as determined by the Minister, that is computed under sections 7.5 and 7.7 of the Canada-Yukon Oil and Gas Accord, signed on May 28, 1993, and under section 7.27 of the Yukon Northern Affairs Program Devolution Transfer Agreement, signed on October 29, 2001.
2005, c. 7, s. 1;
2007, c. 29, s. 62.
Previous Version[Repealed, 2007, c. 29, s. 62]Previous Version[Repealed, 2007, c. 29, s. 62]Previous Version[Repealed, 2007, c. 29, s. 62]Previous Version[Repealed, 2007, c. 29, s. 62]Previous Version[Repealed, 2007, c. 29, s. 62]Previous Version[Repealed, 2007, c. 29, s. 62]Previous VersionFISCAL STABILIZATION PAYMENTS TO PROVINCESFiscal stabilization paymentSubject to this Act, the Minister may pay to a province, for each fiscal year that begins after March 31, 1987, a fiscal stabilization payment not exceeding the amount computed in accordance with section 6.
R.S., 1985, c. F-8, s. 5;
R.S., 1985, c. 11 (3rd Supp.), s. 4.
Computation of paymentsSubject to subsections (8) to (10), the fiscal stabilization payment that may be paid to a province for a fiscal year is the amount determined by the formula(0.95 × A) – B + (C × D) – (E × F)whereAis the non-natural resource revenue of the province for the preceding fiscal year;Bis the non-natural resource revenue of the province for the fiscal year;Cis equal to95%, if the natural resource revenue of the province for the fiscal year is greater than the natural resource revenue of the province for the preceding fiscal year,50%, if the natural resource revenue of the province for the fiscal year is less than one half of the natural resource revenue of the province for the preceding fiscal year, orzero, in any other case;Dis the natural resource revenue of the province for the preceding fiscal year;Eis equal toone, if the natural resource revenue of the province for the fiscal year is either greater than the natural resource revenue of the province for the preceding fiscal year or less than one half of the natural resource revenue of the province for the preceding fiscal year, orzero, in any other case; andFis the natural resource revenue of the province for the fiscal year.[Repealed, 2010, c. 25, s. 173]AdjustmentFor the purposes of determining the amount under subsection (1), the Minister may adjust, in the prescribed manner, the natural resource revenue and the non-natural resource revenue of a province for the fiscal year to offset the amount, as determined by the Minister, of any change in either of those revenues for the fiscal year resulting from changes made by the province in the rates or structure of provincial taxes or of other means of raising the revenue of the province from the rates or structures in effect in the preceding fiscal year.InterpretationIf a province has entered into a tax collection agreement respecting personal income tax or corporation income tax, a change to the Income Tax Act affecting the province’s Common Tax Base as defined in Chapter 2 or 3, as the case may be, of the tax collection agreement is deemed to be a change in the rates or in the structures of provincial taxes for the purposes of subsection (2).[Repealed, 2010, c. 25, s. 173]Natural resource revenueFor the purposes of determining the amount under subsection (1), the natural resource revenue of a province for a fiscal year is the aggregate of the total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraphs (l) to (w) of the definition revenue source in subsection 3.9(1) and from the revenue sources described in paragraph (z.5) of that definition that relate to natural resources.Non-natural resource revenueFor the purposes of determining the amount under subsection (1), the non-natural resource revenue of a province for a fiscal year is equal tothe aggregate ofthe total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraphs (a) to (k), (x), (y) and (z.1) to (z.3) of the definition revenue source in subsection 3.9(1),the total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraph (z.5) of that definition that do not relate to natural resources,the fiscal equalization payment made to the province for the fiscal year under Part I, andthe additional cash payment made to the province for the fiscal year under section 24.703,minusdespite subsection (5), the aggregate ofthe total equalized tax transfer applicable to the province as if, for that fiscal year, the transfer were determined in the manner described in subsection 24.7(1.22), andthe value of the additional tax abatement units as determined in accordance with subsection 27(2).Non-natural resource revenueFor the purposes of determining the non-natural resource revenue of a province for a fiscal year,subsection 3.9(2) applies, with any modifications that the circumstances require, in determining the revenue derived by the province for the fiscal year from personal income taxes, described in paragraph (a) of the definition revenue source in subsection 3.9(1), except that no deduction may be made in respect of the tax abatement units referred to in subsection 27(2);the province’s revenue for the fiscal year derived from personal income taxes, described in paragraph (a) of the definition revenue source in subsection 3.9(1), is deemed to bethe total amount, determined in the prescribed manner, of the provincial personal income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year ending in the fiscal year,minusthe total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the province against provincial personal income taxes for that taxation year that have been deducted from those assessed or reassessed provincial personal income taxes; andthe province’s revenue for the fiscal year derived from that part of the revenue source described in paragraph (b) of the definition revenue source in subsection 3.9(1) that consists of corporation income taxes is deemed to bethe total amount, determined in the prescribed manner, of the provincial corporation income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year of corporations ending in the calendar year that ends in the fiscal year,minusthe total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the province against provincial corporation income taxes for that taxation year that have been deducted from those assessed or reassessed provincial corporation income taxes.ExceptionDespite subsection (4), for the purposes of determining the amount under subsection (1) for a fiscal year, the payment under section 3.12 and the additional cash payment under section 24.703 are not included in the province’s non-natural resource revenue for the preceding fiscal year.Application by province for paymentA fiscal stabilization payment may be paid to a province for a fiscal year only on receipt by the Minister, not later than eighteen months after the end of the fiscal year, of an application by the province therefor containing such information as may be prescribed.Limit of $60 per capitaSubject to subsection (9), for each fiscal year that begins after March 31, 1987, the fiscal stabilization payment that may be paid to a province shall not exceed the amount obtained by multiplying $60 by the population of that province on June 1 of that year, based on the most recent information that has been prepared by Statistics Canada for that year in accordance with the regulations.LoanIf the amount of the fiscal stabilization payment of a province calculated pursuant to subsections (1) to (7) exceeds the amount calculated in respect of the province pursuant to subsection (8) any amount of the difference between those amounts may, at the discretion of the Minister, be lent to the province on the prescribed terms and conditions and in prescribed manner.RepaymentAny amount lent pursuant to subsection (9) does not bear interest and shall be repaid, in prescribed manner, by the province before the expiration of the period of five years following the date the amount is lent or shall be recovered, in prescribed manner, from any amount that may become payable to the province pursuant to this Act within that period.[Repealed, 2010, c. 25, s. 173]
R.S., 1985, c. F-8, s. 6;
R.S., 1985, c. 11 (3rd Supp.), s. 5;
1995, c. 17, s. 47;
1999, c. 11, s. 3, c. 31, s. 235;
2005, c. 7, s. 2;
2010, c. 25, s. 173;
2011, c. 15, s. 29.
Previous VersionADMINISTRATION AGREEMENTSAdministration agreementThe Minister or the Minister of National Revenue, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an administration agreement with the government of a province or an aboriginal government.Amending agreementThe Minister or the Minister of National Revenue, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement amending the terms and conditions of an administration agreement.Application of provincial lawsWhere an Act of the legislature of a province in respect of which an administration agreement has been entered into and that imposes a tax contains provisions requiring every person making a payment of a specified kind to another person to deduct or withhold therefrom an amount, and to remit that amount on account of the tax, effect may be given to those provisions in relation to persons to whom those payments are made out of the Consolidated Revenue Fund or by an agent of Her Majesty in right of Canada.Depositing paymentsA government that is a party to an administration agreement in respect of an Act may, in accordance with the terms and conditions of the agreement and, if the Act is the Act of the legislature of a province, subject to the law of the province, deposit to an account under its control any form of payment, including a cheque or money order, received in the course of administering and enforcing the Act, that is payable to the government that is the other party to the administration agreement.
R.S., 1985, c. F-8, s. 7;
1992, c. 10, s. 4;
1998, c. 21, s. 77.
Set-offs — provincial ActWhere the Government of Canada has entered into an administration agreement in respect of an Act of the legislature of a province, the federal Minister who, pursuant to the administration agreement, is responsible for the administration and enforcement of the Act may, subject to the law of the province and in accordance with the terms and conditions of the agreement, apply any amount that is payable to a person under that Act, for the purpose of reducing the amount that is, or may become, payable by that person under any Act of the legislature of the province or any Act of Parliament.Set-offs — federal ActWhere the government of a province has entered into an administration agreement in respect of an Act of Parliament, the provincial Minister who, pursuant to the administration agreement, is responsible for the administration and enforcement of the Act may, in accordance with the terms and conditions of the agreement, apply any amount that is payable to a person under that Act, for the purpose of reducing the amount that is, or may become, payable by that person under any Act of the legislature of the province that imposes a tax or any Act of Parliament.
1992, c. 10, s. 4.
Assignment of amount owedSubject to section 7.1, where an amount is owed by a government to a person under an Act in respect of which an administration agreement has been entered into, that person may direct that the amount be applied, in accordance with the terms and conditions of the administration agreement, against any amount that is payable by that person underan Act of Parliament, if the money is owed by the government under an Act of the legislature of the province; oran Act of the legislature of the province, if the money is owed by the government under an Act of Parliament.
1992, c. 10, s. 4.
PaymentsNotwithstanding any other Act of Parliament, any amount that is payable by a person under an Act of Parliament in respect of which an administration agreement has been entered into may be remitted by that person to the government of the province that is a party to the administration agreement.
1992, c. 10, s. 4.
Net remittance — provinceNotwithstanding any other enactment, where an administration agreement has been entered into in respect of an Act of Parliament, the government of the province that is a party to the administration agreement may reduce the remittance to Canada of any amount it has collected on behalf of Canada pursuant to the administration agreement by any amount it has paid to a person on behalf of Canada, in accordance with the terms and conditions of the administration agreement.Net remittance — CanadaNotwithstanding any other enactment, where an administration agreement has been entered into in respect of an Act of the legislature of a province, the Government of Canada may, subject to the law of the province, reduce the remittance to the province of any amount it has collected on behalf of the province pursuant to the administration agreement by any amount it has paid to a person on behalf of the province, in accordance with the terms and conditions of the administration agreement.
1992, c. 10, s. 4.
Advance payments under agreementsWhere the government of a province or an aboriginal government has entered into an administration agreement, the Minister, in accordance with the regulations, may make advance payments to the province or the aboriginal government out of the Consolidated Revenue Fund on account of any amount that may become payable to the province or the aboriginal government pursuant to the administration agreement.
R.S., 1985, c. F-8, s. 8;
1992, c. 10, s. 4;
1998, c. 21, s. 78.
Payment out of C.R.F.Subject to subsection (2), where an administration agreement has been entered into in respect of an Act of the legislature of a province or in respect of legislation made by an aboriginal government, payments may be made to a person out of the Consolidated Revenue Fund on account of any amount that is payable to that person under that Act or legislation, in accordance with the terms and conditions of the administration agreement.Advances from the C.R.F.Where no amount is held on behalf of the province or aboriginal government from which a payment under subsection (1) may be made, or the amount of the payment exceeds the amount so held, payment pursuant to subsection (1) may be made as a recoverable advance from the Consolidated Revenue Fund if the repayment of the amount or the excess by the government of the province or the aboriginal government is provided for in the administration agreement.
1992, c. 10, s. 4;
1998, c. 21, s. 79.
SALES TAX HARMONIZATION AGREEMENTSDefinition of “sales taxes”In this Part, sales taxes means the taxes imposed under Part IX of the Excise Tax Act and taxes levied under Acts of the legislature of a province in respect of supplies of property or services.Meanings in Part IX to applyIn this Part, “property”, “service” and “supply” have the meanings assigned by subsection 123(1) of the Excise Tax Act.
1997, c. 10, s. 262.
Sales tax harmonization agreementThe Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement or arrangement with the government of a province respecting sales taxes and, without restricting the generality of the foregoing, respectingthe integration of sales taxes applicable in the province into taxes collected, administered and enforced under a single Act of Parliament;the collection of taxes applicable in the province, whether imposed under an Act of Parliament or levied under an Act of the legislature of the province, and the administration and enforcement of the Acts imposing the taxes;the provision to the Government of Canada by the government of the province, or to the government of the province by the Government of Canada, of information acquired in the administration and enforcement of Acts imposing taxes, Acts relating to the disclosure, displaying or advertisement of prices for property or services and Acts providing for rebates, refunds or reimbursements of sales taxes, paid or payable, or of amounts paid or payable as or on account of sales taxes, in respect of the supply, bringing into the province or importation of certain property or services;the accounting for taxes collected in accordance with the agreement;the implementation of the system of integration of the sales taxes contemplated under the agreement and the transition from the system of taxation administered before the agreement to the system of taxation contemplated under the agreement;payments, and the eligibility for payments, by the Government of Canada to the government of the province in respect of the revenues from, and the transitional costs incurred in converting to, the system of taxation contemplated under the agreement and to which the province is entitled under the agreement, the time when such payments will be made, and the remittance by the government of the province to the Government of Canada of any overpayments by the Government of Canada or the right of the Government of Canada to set off any overpayments against other amounts payable by the Government of Canada to the government of the province, whether under the agreement or any other agreement or arrangement or any Act of Parliament;the payment by the Government of Canada and its agents and subservient bodies, and by the government of the province and its agents and subservient bodies, of the sales taxes payable under the system of taxation contemplated under the agreement and the accounting for the sales taxes so paid;the compliance by the Government of Canada and its agents and subservient bodies, and by the government of the province and its agents and subservient bodies, with the Act of Parliament under which the system of taxation is administered and regulations made under that Act;the enactment, administration and enforcement of laws respecting the disclosure, display and advertisement of the prices for property and services in respect of the supply of which sales taxes are payable under the system of taxation contemplated under the agreement;the administration and enforcement of Acts of Parliament or the legislature of the province respecting the rebate, refund or reimbursement of sales taxes paid in respect of the supply, bringing into the province or importation of certain property or services; andother matters that relate to, and that are considered advisable for the purposes of implementing or administering, the system of taxation contemplated under the agreement.Amending agreementsThe Minister, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an agreement with the government of a province amending or varying an agreement or arrangement with the province entered into under subsection (1) or this subsection or ratified and confirmed under section 8.7.
1997, c. 10, s. 262.
Payments to provinceIf there is a sales tax harmonization agreement with the government of a province, the appropriate minister may pay to the province out of amounts received in a fiscal year under Part IX of the Excise Tax Actamounts determined in accordance with the agreement as provided, and at such times as are specified, in the agreement; andsubject to the regulations, advances in respect of the amounts referred to in paragraph (a).
1997, c. 10, s. 262;
2011, c. 24, s. 187.
Previous VersionPayments to other personsSubject to subsection (2), where, under a sales tax harmonization agreement, a federal Minister is responsible for the administration and enforcement of an Act of the legislature of a province respecting the refund, rebate or reimbursement to persons of sales taxes paid or payable by the persons, or of amounts paid or payable as or on account of sales taxes, in respect of the supply, bringing into the province or importation of certain property or services, that Minister may pay out of amounts received in a fiscal year under Part IX of the Excise Tax Act to a person an amount on account of any amount that is payable to the person under that Act in accordance with the agreement.Advances from Consolidated Revenue FundWhere no amount is held on behalf of a province from which payment under subsection (1) may be made in accordance with a sales tax harmonization agreement with the province, or the amount of the payment exceeds the amount so held, payment under subsection (1) may be made as a recoverable advance out of amounts received in a fiscal year under Part IX of the Excise Tax Act if the repayment of the amount or excess by the government of the province is provided for in the sales tax harmonization agreement.
1997, c. 10, s. 262.
Statutory authority to make paymentsNotwithstanding any other Act, the payments paid under a sales tax harmonization agreement under the authority of section 8.4 or 8.5 may be made without any other or further appropriation or authority.
1997, c. 10, s. 262.
Confirmation of past agreements, etc.Agreements and arrangements that were entered into by the Minister after March 29, 1996, and that, if section 8.3 had been in force on and after that day, could have been authorized under that section, are, for greater certainty, ratified and confirmed and are deemed to have been entered into under that section and approved by the Governor in Council, and all actions taken and payments made under those agreements and arrangements after that day and before this Act is assented to are ratified and confirmed.Confirmation of past paymentsPayments that were made before the date on which the Keeping Canada’s Economy and Jobs Growing Act was assented to and that could have been authorized under section 8.4, as amended by that Act, if that version of section 8.4 had been in force on the date those payments were made are, for greater certainty, ratified and confirmed and all actions taken in respect of those payments are ratified and confirmed.
1997, c. 10, s. 262;
2011, c. 24, s. 188.
Previous VersionTRANSFER PAYMENTS WITH RESPECT TO THE ELIMINATION OF PROVINCIAL CAPITAL TAXESDefinition of capital taxIn this Part, capital tax means a tax that is imposed on one or more of the following:an element of shareholders’ equity in a corporation such as share capital or retained earnings;a form of long-term indebtedness owed by a corporation; orany other element of capital that the Minister considers appropriate.It does not includea tax imposed under Part VI.1 of the Taxation Act, R.S.Q., c. I-3;a tax imposed under section 74.1 of the Corporations Tax Act, R.S.O. 1990, c. C-40; orany tax that the Minister does not consider to be sufficiently similar to a tax imposed under Part I.3 or VI of the Income Tax Act.
R.S., 1985, c. F-8, s. 9;
R.S., 1985, c. 11 (3rd Supp.), s. 6;
1992, c. 10, s. 5;
1994, c. 2, s. 3;
1999, c. 11, s. 4;
2007, c. 29, s. 63, c. 35, s. 139.
Previous Version[Repealed, 2007, c. 29, s. 63]Previous VersionIncentive to eliminate capital taxesAs an incentive for a province to eliminate capital taxes imposed by the province, the province is eligible to receive a payment under this Part ifbefore January 2, 2011, it eliminates a capital tax that is imposed under a law of the province that was in force on March 18, 2007; andany legislation that is required to give effect to the elimination is enacted after March 18, 2007 and before January 2, 2011.Meaning of eliminationFor the purposes of this Part, a capital tax is considered to be eliminated ifunder the law of the province, the tax ceases before January 2, 2011 to be imposed on all corporations, except that the tax may continue to be imposed on any corporation that is exempt from tax under any of paragraphs 149(1)(d) to (d.4) of the Income Tax Act on all of its taxable income; orin the case where the tax is imposed only on financial institutions, the law under which the tax is imposed is amended, before January 2, 2011, to replace the tax with a new capital tax imposed only on financial institutions that meets the following criteria:no financial institution becomes subject to the new capital tax that was not subject to the replaced tax,every financial institution on which the new capital tax is imposed must be permitted to reduce the amount of the new capital tax payable by it for a taxation year by the amount of income tax payable by it to the province for the year and, if the amount of income tax so payable exceeds the amount of the new capital tax so payable, the financial institution must be permitted to apply the amount of the excess to reduce capital tax payable by it in other taxation years in a manner satisfactory to the Minister, andthe Minister is satisfied that the total amount of revenue that would be raised by the new capital tax from financial institutions if there were no reduction for income tax payable is intended to be broadly commensurate with the total amount of revenue raised from those financial institutions by the province’s income tax.Separate capital taxIf a province imposes a capital tax that applies to financial institutions as well as corporations that are not financial institutions, the capital tax is deemed to be two separate capital taxes for the purposes of this Part.
R.S., 1985, c. F-8, s. 10;
1999, c. 31, s. 236;
2007, c. 29, s. 63, c. 35, s. 139.
Previous VersionAmount of paymentThe amount that a province may be eligible to receive, in respect of a period fixed by the Minister, is equal to 17% of the estimated foregone revenue for that period.Preliminary paymentA province is eligible to receive a preliminary payment for a period if the province has provided information in accordance with section 12.01 such that the Minister is able to make a preliminary determination of the estimated foregone revenue for that period. The Minister shall try to make a preliminary payment to the province on or before the last day of the period if the Minister receives the information in a timely manner.Final determinationAfter finalized information that is consistent with a province’s public accounts becomes available so as to enable the Minister to make a final determination of the amount under subsection (1) in respect of a period, the Minister shall do so and reconcile the final determination with any preliminary payment paid to the province. If the amount of the final determination is greater than the preliminary payment, the Minister shall, without delay, pay the difference to the province. However, if the amount of the final determination is less than the preliminary payment, the difference may be deducted from any amount payable to the province under this Act or be recovered from the province as a debt due to Her Majesty in right of Canada.Program time limitFor the purposes of determining the amount of a payment under this Part, a period shall not include a day that is before March 19, 2007 or after January 1, 2011.Consolidated Revenue FundThe Minister may pay to a province, out of the Consolidated Revenue Fund, any amount that the province is eligible to receive under this Part.
R.S., 1985, c. F-8, s. 11;
2007, c. 29, s. 63, c. 35, s. 139.
Previous VersionEstimated foregone revenueExcept where subsection (2) applies, the estimated foregone revenue for a province in respect of a period is the amount, as determined by the Minister, by whichthe estimated base revenue, determined as the estimated amount of revenue in respect of a specific capital tax that the province would have received in respect of the period from corporations that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date,exceedsthe estimated actual revenue, determined as the estimated amount of revenue in respect of the capital tax that the province receives in respect of the period from corporations that are subject to tax under Part I of the Income Tax Act.Estimated foregone revenue — capital tax on financial institutionsIn the case of a capital tax that has been eliminated as described in paragraph 10(2)(b), the estimated foregone revenue for a province in respect of a period is the amount determined by the Minister to be the estimated amount of revenue in respect of the capital tax that the province would have received in respect of the period from financial institutions that would have been subject to tax under Part I of the Income Tax Act under the laws of the province as they read on March 18, 2007, including any enactment that would be applicable to the period but that had not come into force on or before that date.
R.S., 1985, c. F-8, s. 12;
2007, c. 29, s. 63, c. 35, s. 139.
Previous VersionProvision of informationNo payment may be made to a province under this Part unless the province provides to the Minister all of the information that the Minister considers necessary for the determination of the amount of that payment in accordance with this Part.Certification by Minister of provinceAll information provided by a province shall be of the best quality that is available at the time it is provided and shall be certified as such by an appropriate minister of the provincial government.
2007, c. 35, s. 139.
TRANSFER PAYMENTS — TAX IN RESPECT OF STOCK OPTION BENEFIT DEFERRAL UNDER PART I.01 OF THE INCOME TAX ACTTransfer payments — Consolidated Revenue FundSubject to this Act, the Minister may pay to a province, out of the Consolidated Revenue Fund, at such time as the Minister may determine, an amount equal to 1/3 of the tax payable under subparagraph 180.01(2)(c)(ii) of the Income Tax Act for a taxation year by a taxpayer who is resident in the province on the last day of that taxation year.
2010, c. 25, s. 144.
Eligibility for paymentNo payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part I.01 of the Income Tax Act.
2010, c. 25, s. 144.
TRANSFER PAYMENTS WITH RESPECT TO PREFERRED SHARE DIVIDEND TAXES UNDER PARTS IV.1 AND VI.1 OF THE INCOME TAX ACTTransfer payments in respect of preferred share dividend taxes under Parts IV.1 and VI.1 of the Income Tax ActSubject to this Act, the Minister may, in respect of taxes payable under Parts IV.1 and VI.1 of the Income Tax Act by a corporation for a taxation year of the corporation ending in a fiscal year, pay to a province out of the Consolidated Revenue Fund, at such time as the Minister may determine, an amount for the fiscal year equal to thirty-five per cent of that proportion of the taxes so payable thatthe amount of taxable income of the corporation earned in that taxation year in that province determined in accordance with the provisions of regulations made under the Income Tax Act,is ofthe corporation’s taxable income for that taxation year.Where income of corporation is nilFor the purposes of subsection (1), where a corporation’s taxable income for a taxation year would, but for this subsection, be nil, the corporation shall be deemed to have taxable income for the taxation year equal to $100.
R.S., 1985, c. 46 (4th Supp.), s. 6.
Eligibility for paymentsNo payment may be made under this Part to a province for a fiscal year unlesspursuant to a tax collection agreement, Canada has undertaken for the calendar year ending in the fiscal year to collect taxes imposed by the province under an Act of the legislature of the province imposing a tax on the income of corporations; orthe Act of the legislature of the province imposing a tax on the income of corporations provides, in the opinion of the Minister, for a deduction in computing taxable income of a corporation for taxation years ending in the fiscal year of at least 9/4 of the tax payable for those taxation years by the corporation under Part VI.1 of the Income Tax Act.IdemNo payment may be made under this Part to a province for a fiscal year where, in the opinion of the Minister, the province imposes or purports to impose a tax payable by corporations for taxation years ending in the fiscal year that is identical or similar to the taxes imposed under Parts IV.1 and VI.1 of the Income Tax Act.
R.S., 1985, c. 46 (4th Supp.), s. 6;
1990, c. 39, s. 56;
1999, c. 31, s. 237(F).
InformationA corporation shall furnish to the Minister of National Revenue any information that Minister may require for the purpose of determining the amount payable to a province under this Part in respect of the taxes payable by the corporation under Parts IV.1 and VI.1 of the Income Tax Act.
R.S., 1985, c. 46 (4th Supp.), s. 6.
TRANSFER PAYMENTS — TAX IN RESPECT OF SIFT TRUSTS OR SIFT PARTNERSHIPSDefinitionsThe following definitions apply in this Part.SIFT entityentité intermédiaire de placement déterminéeSIFT entity means a SIFT trust or a SIFT partnership.SIFT partnershipsociété de personnes intermédiaire de placement déterminéeSIFT partnership has the same meaning as in subsection 248(1) of the Income Tax Act.SIFT trustfiducie intermédiaire de placement déterminéeSIFT trust has the same meaning as in subsection 248(1) of the Income Tax Act.
2012, c. 31, s. 97.
Permanent establishmentThe definition permanent establishment in subsection 400(2) of the Income Tax Regulations, as it read on March 12, 2009 and as it is amended from time to time after that date, applies in determining the amount payable to a province under this Part.
2012, c. 31, s. 97.
Transfer payments for SIFT entity with single permanent establishmentSubject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and no permanent establishment outside the province, the amount determined by the formulaZ × YwhereZisin respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, andin any other case, the amount determined under paragraph 414(3)(b) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; andYisfor a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, andfor a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.
2012, c. 31, s. 97.
Transfer payments for SIFT entity with multiple permanent establishmentsSubject to this Act, the Minister may pay to a province, in respect of tax payable under subsection 122(1) or 197(2) of the Income Tax Act by a SIFT entity that, in a taxation year, has a permanent establishment in the province and a permanent establishment outside the province, the amount determined by the formula(Z/Y) × (X × W)whereZis, subject to subsection (2), the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations for the taxation year in respect of the province;Yissubject to subsection (2), in respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, the amount that would be determined under paragaph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year if the SIFT entity had made that election, andin any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year;Xisin respect of a taxation year that is after 2006 and before 2009 for which no election was made by the SIFT entity under subsection 34(4) of the Budget Implementation Act, 2008, 0.13, andin any other case, the amount determined under paragraph 414(3)(c) of the Income Tax Regulations in respect of the SIFT entity for the taxation year; andWisfor a SIFT entity that is a SIFT trust, the SIFT trust’s taxable SIFT trust distributions, as defined in subsection 122(3) of the Income Tax Act, for the taxation year, andfor a SIFT entity that is a SIFT partnership, the SIFT partnership’s taxable non-portfolio earnings, as defined in subsection 197(1) of the Income Tax Act, for the taxation year.2007 and 2008 taxation years — permanent establishment in QuebecIn respect of a taxation year that is after 2006 and before 2009 for which no election was made under subsection 34(4) of the Budget Implementation Act, 2008 by a SIFT entity that has a permanent establishment in the province of Quebec in that taxation year, in calculating the amount determined by the second formula in paragraph 414(3)(c) of the Income Tax Regulations in respect of that province, paragraph (a) of the definition general corporate income tax rate in subsection 414(1) is to be read as follows:for Quebec, the highest percentage rate of tax imposed under the laws of Quebec on the taxable income of a public corporation earned in the taxation year in Quebec;
2012, c. 31, s. 97.
Consolidated Revenue FundPayments that the Minister may make under section 12.33 or 12.34 are to be made out of the Consolidated Revenue Fund at any time that the Minister may determine.
2012, c. 31, s. 97.
InformationA SIFT entity that has not made an election under subsection 34(4) of the Budget Implementation Act, 2008 in respect of a taxation year that is after 2006 and before 2009 must furnish to the Minister of National Revenue any information that that Minister may require for the purpose of determining the amount payable to a province under this Part in respect of taxes payable by the SIFT entity under subsection 122(1) or 197(2) of the Income Tax Act for that taxation year.
2012, c. 31, s. 97.
TRANSFER PAYMENTS — TAX ON PAYMENTS UNDER REGISTERED EDUCATION SAVINGS PLANS UNDER PART X.5 OF THE INCOME TAX ACTTransfer payments — Consolidated Revenue FundSubject to this Act, the Minister may pay to a province, out of the Consolidated Revenue Fund, at such time as the Minister may determine, an amount equal to 40% of the tax payable under Part X.5 of the Income Tax Act for a taxation year by a person who is resident in the province on the last day of that taxation year.
2010, c. 25, s. 145.
Eligibility for paymentNo payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part X.5 of the Income Tax Act.
2010, c. 25, s. 145.
TRANSFER PAYMENTS — TAX ON EXCESS EPSP AMOUNTS UNDER PART XI.4 OF THE INCOME TAX ACTTransfer payments — Consolidated Revenue FundSubject to this Act, the Minister may, at such time as he or she determines, pay to a province, out of the Consolidated Revenue Fund in respect of tax payable under section 207.8 of the Income Tax Act for a taxation year by a person who is resident in the province at the end of the taxation year, the amount determined by the formula:A × BwhereAis the percentage applicable to the person for the taxation year under the description of B in the formula in subsection 207.8(2) of the Income Tax Act; andBis the amount determined for the person for the taxation year under the description of C in the formula in subsection 207.8(2) of the Income Tax Act.
2012, c. 31, s. 98.
Eligibility for paymentNo payment may be made under this Part to a province if, in the opinion of the Minister, the province imposes or purports to impose a tax that is similar to the tax imposed under Part XI.4 of the Income Tax Act.
2012, c. 31, s. 98.
TRANSFER PAYMENTS WITH RESPECT TO FEDERAL TAXES — NECESSARY INFORMATIONInformation to be providedThe Minister of National Revenue shall provide to the Minister in a form and manner, and at a time, satisfactory to the Minister, any information necessary for the administration of Parts IV.01 to IV.3.
2012, c. 31, s. 98.
[Repealed, 2012, c. 19, s. 391][Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous Version[Repealed, 2012, c. 19, s. 391]Previous VersionCANADA HEALTH TRANSFER, CANADA SOCIAL TRANSFER AND WAIT TIMES REDUCTION TRANSFERCanada Health TransferPurposesSubject to this Part and for the purpose of giving effect to the 2003 First Ministers’ Accord on Health Care Renewal and the 2004 10-Year Plan to Strengthen Health Care, a Canada Health Transfer in the amounts referred to in subsection 24.1(1) is to be provided to the provinces for the purposes ofmaintaining the national criteria and conditions in the Canada Health Act, including those respecting public administration, comprehensiveness, universality, portability and accessibility, and the provisions relating to extra-billing and user charges; andcontributing to providing the best possible health care system for Canadians and to making information about the health care system available to Canadians.
R.S., 1985, c. F-8, s. 24;
1995, c. 17, s. 52;
2003, c. 15, s. 8;
2005, c. 11, s. 2.
Previous VersionAmountThe Canada Health Transfer is to consist ofa cash contribution equal to$12.65 billion for the fiscal year beginning on April 1, 2004,$1 billion for the fiscal year beginning on April 1, 2004,$19 billion for the fiscal year beginning on April 1, 2005,the product obtained by multiplying the cash contribution for the immediately preceding year by 1.06, rounded to the nearest thousand, for each fiscal year in the period beginning on April 1, 2006 and ending on March 31, 2017, andfor each fiscal year beginning after March 31, 2017, the product, rounded to the nearest thousand, obtained by multiplying the cash contribution for the immediately preceding fiscal year by the greater of 1.03, and(1 + A)whereAis the average of the annual rates of growth of the nominal gross domestic product of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years; andthe portion of the total equalized tax transfer for all provinces that is determined by multiplying the total equalized tax transfer for all provinces by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph (a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs (a)(i) and 24.4(1)(a)(i).Meaning of total equalized tax transferIn subsection (1), total equalized tax transfer means the total equalized tax transfer as determined in accordance with section 24.7.Non-applicationThe cash contribution referred to in subparagraph (1)(a)(ii) is not subject to subparagraphs 4(1)(a)(i) to (iii) of the Canada Health Transfer and Canada Social Transfer Regulations.
2003, c. 15, s. 8;
2005, c. 11, s. 3;
2007, c. 29, s. 64;
2012, c. 19, s. 393.
Previous VersionProvincial share — fiscal years 2004-2005 to 2013-2014The cash contribution established under paragraph 24.1(1)(a) that may be provided to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2014 is the amount determined by the formulaF × (K/L) - MwhereFis the total of the amounts established under paragraphs 24.1(1)(a) and (b) for the fiscal year;Kis the population of the province for the fiscal year;Lis the total of the population of all provinces for the fiscal year; andMis the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.1(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i).Fiscal year 2009–2010Despite subsection (1), the cash contribution established under paragraph 24.1(1)(a) that may be provided to a province for the fiscal year beginning on April 1, 2009 isfor Ontario, $9,233,217,000;for Quebec, $5,798,516,000;for Nova Scotia, $700,137,000;for New Brunswick, $557,488,000;for Manitoba, $903,325,000;for British Columbia, $3,353,843,000;for Prince Edward Island, $104,364,000;for Saskatchewan, $843,451,000;for Alberta, $1,961,782,000;for Newfoundland and Labrador, $450,450,000;for Yukon, $26,457,000;for the Northwest Territories, $26,824,000; andfor Nunavut, $27,208,000.
2003, c. 15, s. 8;
2007, c. 29, s. 65;
2009, c. 2, s. 388;
2012, c. 19, s. 394.
Previous VersionProvincial share — fiscal year 2014-2015 and laterThe cash contribution established under paragraph 24.1(1)(a) that may be provided to a province for each fiscal year beginning after March 31, 2014 is the amount determined by multiplying the total of the cash contributions to be provided to all the provinces for that fiscal year by the quotient obtained by dividingthe population of that province for that fiscal yearbythe total of the population of all provinces for that fiscal year.
2007, c. 29, s. 66;
2012, c. 19, s. 395.
Previous VersionCanada Social TransferPurposesSubject to this Part, a Canada Social Transfer in the amounts referred to in subsection 24.4(1) is to be provided to the provinces for the purposes offinancing social programs in a manner that provides provincial flexibility;maintaining the national standard, set out in section 25.1, that no period of minimum residency be required or allowed with respect to social assistance; andpromoting any shared principles and objectives, including public reporting, that are developed under subsection (2) with respect to the operation of social programs.Discussion with provincesThe Minister of Human Resources and Skills Development shall invite representatives of all the provinces to consult and work together to develop, through mutual consent, a set of shared principles and objectives for social programs that could underlie the Canada Social Transfer.Definition of social programsIn this section, social programs includes programs in respect of post-secondary education, social assistance and social services, including early childhood development, and early learning and child care services.
2003, c. 15, s. 8;
2005, c. 35, s. 67;
2007, c. 29, s. 67;
2012, c. 19, ss. 396, 694.
Previous VersionAmountThe Canada Social Transfer is to consist ofa cash contribution of$7.75 billion for the fiscal year beginning on April 1, 2004,$150 million for the fiscal year beginning on April 1, 2004,$8.225 billion for the fiscal year beginning on April 1, 2005,$8.5 billion for the fiscal year beginning on April 1, 2006,$9.487 billion for the fiscal year beginning on April 1, 2007,$10.537 billion for the fiscal year beginning on April 1, 2008, andthe product obtained by multiplying the cash contribution for the immediately preceding fiscal year by 1.03, rounded to the nearest thousand, for each fiscal year beginning after March 31, 2009.the portion of the total equalized tax transfer for all provinces that is determined by multiplying the total equalized tax transfer for all provinces by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph (a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs (a)(i) and 24.1(1)(a)(i).Meaning of total equalized tax transferIn subsection (1), total equalized tax transfer means the total equalized tax transfer as determined in accordance with section 24.7.
2003, c. 15, s. 8;
2004, c. 22, s. 5;
2007, c. 29, s. 68;
2012, c. 19, s. 397.
Previous VersionProvincial share: fiscal year 2006-2007 and earlierThe cash contribution established under any of subparagraphs 24.4(1)(a)(i) to (iv) that may be provided to a province for the fiscal year mentioned in that subparagraph is the amount determined by the formulaF × (K/L) - MwhereFis the total of the amounts established under subparagraphs 24.4(1)(a)(i) to (iv) and paragraph 24.4(1)(b) for the fiscal year;Kis the population of the province for the fiscal year;Lis the total of the population of all provinces for the fiscal year; andMis the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.4(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i).
2003, c. 15, s. 8;
2007, c. 29, s. 69.
Previous VersionProvincial share — fiscal year 2007-2008 and laterThe cash contribution established under any of subparagraphs 24.4(1)(a)(v) to (vii) that may be provided to a province for the fiscal year mentioned in that subparagraph is the amount determined by multiplying the amount established under that subparagraph for that fiscal year by the quotient obtained by dividingthe population of the province for that fiscal yearbythe total of the population of all provinces for that fiscal year.
2007, c. 29, s. 70.
[Repealed, 2012, c. 19, s. 398]Previous VersionWait Times Reduction TransferPurposesSubject to this Part, a Wait Times Reduction Transfer is established under section 24.62 to provide funding for the purposes of assisting the provinces to reduce wait times according to their respective priorities, including training and hiring more health professionals, clearing backlogs, building capacity for regional centres of excellence, expanding appropriate ambulatory and community care programs and expanding tools to manage wait times, as outlined in the 2004 10-Year Plan to Strengthen Health Care.
2005, c. 11, s. 5.
TransferThe Wait Times Reduction Transfer shall consist ofthe cash contribution referred to in subsection 24.63(1); andthe cash contributions referred to in subsection 24.64(1).
2005, c. 11, s. 5.
Payment to trustThe Minister may pay $4.25 billion to a trust established to provide the provinces with funding for the purposes referred to in section 24.61.Provincial shareThe amount that may be provided to a province by the trust is to be determined in accordance with the terms of the trust indenture establishing the trust.Payment out of C.R.F.Notwithstanding section 24.8, the amount payable under subsection (1) may be paid by the Minister to the trust out of the Consolidated Revenue Fund at the times and in the manner that the Minister considers appropriate.
2005, c. 11, s. 5.
Cash contributions to provincesFor the purposes referred to in section 24.61, the Minister may make cash contributions to the provinces equal to $250 million for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.Provincial shareThe amount that may be paid to a province for each of the fiscal years mentioned in subsection (1) is the amount determined by multiplying the amount set out for that fiscal year by the quotient obtained by dividingthe population of the province for the fiscal yearbythe total of the population of all provinces for the fiscal year.
2005, c. 11, s. 5.
Total Equalized Tax TransferTotal equalized tax transfer — fiscal years 2004-2005 to 2006-2007The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007 is the aggregate ofthe total amount, as determined by the Minister, for the fiscal year represented by the federal income tax reduction in the province in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, andthe amount equal to the lesser ofthe equalization payment referred to in subsection (1.1) that would be payable to the province for the fiscal year, andthe amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in Part I, excluding subsection 4(6) of this Act, as that Part read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except thatfor the purposes of the calculation under this subparagraph, the relevant revenue bases are to be determined in the prescribed manner, andwhere subsection 4(6) of this Act as it read on May 13, 2004 applies in the determination of the fiscal equalization payment to the province for the fiscal year, the amount determined under this subparagraph is to be adjusted in the prescribed manner.Equalization payment payableFor the purposes of subparagraph (1)(b)(i),for each fiscal year in the period beginning on April 1, 2005 and ending on March 31, 2007, the equalization payment shall be the equalization payment that would be payable to the province for the fiscal year under Part I, as that Part read on March 28, 2007; andfor the fiscal year beginning on April 1, 2004, the equalization payment shall bein the case of a province that receives an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, andin the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the final computation in respect of the fiscal year.Total equalized tax transfer — fiscal years 2007–2008 to 2010–2011The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2011 is the aggregate ofthe total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year, andin the case of a territory, zero, and in the case of a province, the amount equal to the lesser ofthe equalization payment payable to that province for that fiscal year under Part I, andan amount equal to the greater ofthe product obtained by multiplyingthe aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition revenue source in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal yearbythe population of that province for that fiscal year, andzero.Total equalized tax transfer — fiscal year 2009–2010Despite subsection (1.2), the total equalized tax transfer applicable to a province for the fiscal year beginning on April 1, 2009 isfor Ontario, $5,531,594,000;for Quebec, $3,007,447,000;for Nova Scotia, $363,132,000;for New Brunswick, $289,145,000;for Manitoba, $468,518,000;for British Columbia, $1,649,531,000;for Prince Edward Island, $54,129,000;for Saskatchewan, $302,432,000;for Alberta, $2,129,928,000;for Newfoundland and Labrador, $123,276,000;for Yukon, $11,131,000;for the Northwest Territories, $22,794,000; andfor Nunavut, $8,510,000.Total equalized tax transfer — fiscal year 2011-2012 and laterThe total equalized tax transfer applicable to a province for each fiscal year beginning after March 31, 2011 is the aggregate of the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year andin the case of a province that receives an equalization payment for that fiscal year under Part I and in the case of Ontario, an amount equal to the lesser ofthe equalization payment payable to that province for that fiscal year under Part I, andthe amount equal to the product obtained by multiplyingthe aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition revenue source in subsection 3.9(1), the per capita yield of the federal income tax reduction for that province for that fiscal year from the per capita national yield of the federal income tax reduction for that fiscal yearbythe population of that province for that fiscal year; orin any other case, zero.Revenue sourcesFor the purposes of the calculation under subparagraph (1.2)(b)(ii) and paragraph (1.22)(a), the relevant revenue bases, per capita yield of the federal income tax reduction and per capita national yield of the federal income tax reduction are to be determined in the prescribed manner.Federal income tax reductionFor the purposes of subsections (1), (1.2) and (1.22), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate ofseventy-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act,on the incomes, other than incomes from businesses, of individuals resident in the province on the last day of the taxation year ending in the fiscal year, within the meaning of the Income Tax Act,on the incomes, other than incomes from businesses, earned in the province in the taxation year ending in the fiscal year by individuals not resident in Canada at any time during the taxation year, within the meaning of the Income Tax Act, andon the incomes from businesses earned in the province in the taxation year ending in the fiscal year by individuals, within the meaning of the Income Tax Act,equal to the product obtained by multiplying 13.5/(100-9.143) by the “tax otherwise payable under this Part”, within the meaning assigned by subsection 120(4) of the Income Tax Act, on those incomes,twenty-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act,on the incomes, other than incomes from businesses, of individuals resident in the province on the last day of the taxation year beginning in the fiscal year, within the meaning of the Income Tax Act,on the incomes, other than incomes from businesses, earned in the province in the taxation year beginning in the fiscal year by individuals not resident in Canada at any time during the taxation year, within the meaning of the Income Tax Act, andon the incomes from businesses earned in the province in the taxation year beginning in the fiscal year by individuals, within the meaning of the Income Tax Act,equal to the product obtained by multiplying 13.5/(100-9.143) by the “tax otherwise payable under this Part”, within the meaning assigned by subsection 120(4) of the Income Tax Act, on those incomes,seventy-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act, on the income earned in the province by each corporation, other than a non-resident-owned investment corporation within the meaning of that Act or a corporation named in Schedule III to the Financial Administration Act, or a wholly-owned subsidiary within the meaning of that Act of a corporation so named, that is an agent of Her Majesty in right of Canada, that maintained a permanent establishment in the province at any time during its taxation year ending in the calendar year that ends in the fiscal year, at the rate of one per cent of its taxable income earned in the province in that taxation year, andtwenty-five per cent of the amount, as determined by the Minister, that would be derived from a tax, computed in accordance with the Income Tax Act, on the income earned in the province by each corporation, other than a non-resident-owned investment corporation within the meaning of that Act or a corporation named in Schedule III to the Financial Administration Act, or a wholly-owned subsidiary within the meaning of that Act of a corporation so named, that is an agent of Her Majesty in right of Canada, that maintained a permanent establishment in the province at any time during its taxation year ending in the calendar year that begins in the fiscal year, at the rate of one per cent of its taxable income earned in the province in that taxation year.
2003, c. 15, s. 8;
2005, c. 7, s. 4;
2007, c. 29, s. 71;
2009, c. 2, s. 389.
Previous VersionTransition ProtectionPrevention of transfer declines — Canada Health TransferThe Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by whichthe cash contribution established under paragraph 24.1(1)(a) to be provided to that province for the fiscal year beginning on April 1, 2007 as calculated under this Act, as it read on March 28, 2007exceedsthe cash contribution established under paragraph 24.1(1)(a) to be provided to that province for each of those fiscal years as calculated under this Act as it reads on the day on which this subsection comes into force.Prevention of transfer declines — fiscal year 2014-2015 and laterThe Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2014 equal to the amount by whichthe cash contribution established under paragraph 24.1(1)(a) to be provided to that province for the fiscal year beginning on April 1, 2013, as determined by the Minister between September 1, 2013 and October 12, 2013,exceedsthe cash contribution established under paragraph 24.1(1)(a) to be provided to that province for each of those fiscal years as calculated under this Act as it reads on the day on which this subsection comes into force.Prevention of transfer declines — Canada Social TransferThe Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by whichthe cash contribution established under paragraph 24.4(1)(a) to be provided to that province for the fiscal year beginning on April 1, 2007 as calculated under this Act, as it read on March 28, 2007exceedsthe cash contribution established under paragraph 24.4(1)(a) to be provided to that province for each of those fiscal years as calculated under this Act as it reads on the day on which this subsection comes into force.
2007, c. 29, s. 72;
2012, c. 19, s. 399.
Previous VersionPayments to OntarioThe Minister may pay to Ontario an additional cash payment equal tofor the fiscal year beginning on April 1, 2009, the amount of $489,058,000; andfor the fiscal year beginning on April 1, 2010, the amount determined by the formula-1 × A × BwhereAis the amount determined for Ontario under subclause 24.7(1.2)(b)(ii)(A)(I) for that fiscal year, andBis the population of Ontario for that fiscal year.
2009, c. 2, s. 390;
2010, c. 12, s. 1647.
Previous VersionPayments to Saskatchewan and Newfoundland and LabradorThe Minister may pay an additional cash payment for the fiscal year beginning on April 1, 2010 equal to,for Saskatchewan, $7,304,000; andfor Newfoundland and Labrador, $8,408,000.
2010, c. 12, s. 1648.
[Repealed, 2012, c. 19, s. 400]Previous VersionPaymentsPayments out of C.R.F.Any amount payable under this Part may be paid by the Minister out of the Consolidated Revenue Fund at the times and in the manner that may be prescribed.
2003, c. 15, s. 8.
Reduction or WithholdingDefinitionsThe following definitions apply in sections 25 to 25.5.MinisterministreMinister means the Minister of Human Resources and Skills Development.social assistanceassistance socialesocial assistance means aid in any form to or in respect of a person in need.
2003, c. 15, s. 8;
2005, c. 35, s. 67;
2012, c. 19, s. 694.
Previous VersionReduction or withholding — Canada Health Transfer and Canada Social TransferThe cash contribution that may be provided to a province under section 24.2, 24.21, 24.5 or 24.51 is to be reduced or withheld for the purposes of giving effect toany order made by the Governor in Council in respect of the province under section 15 or 16 of the Canada Health Act or, in the case of a cash contribution under section 24.5 or 24.51, section 25.3 or 25.4 of this Act; orany deduction from the cash contribution under section 20 of the Canada Health Act.
R.S., 1985, c. F-8, s. 25;
1995, c. 17, s. 53;
1999, c. 26, s. 10;
2003, c. 15, s. 8;
2012, c. 19, s. 401.
Previous VersionCriteria for eligibility — Canada Social TransferIn order that a province may qualify for a full cash contribution under sections 24.5 and 24.51 for a fiscal year, the laws of the province must notrequire or allow a period of residence in the province or Canada to be set as a condition of eligibility for social assistance or for the receipt or continued receipt of social assistance; ormake or allow the amount, form or manner of social assistance to be contingent on a period of such residence.[Repealed, 2012, c. 19, s. 402]
2003, c. 15, s. 8;
2012, c. 19, s. 402.
Previous VersionReferral to Governor in CouncilSubject to subsection (3), if the Minister, after consultation in accordance with subsection (2) with the minister responsible for social assistance in a province, is of the opinion that the province does not or has ceased to comply with section 25.1 and the province has not given an undertaking satisfactory to the Minister to remedy the non-compliance within a period that the Minister considers reasonable, the Minister must refer the matter to the Governor in Council.Consultation processBefore referring a matter to the Governor in Council under subsection (1) in respect of a province, the Minister mustsend by registered mail to the minister responsible for social assistance in the province a notice of concern with respect to any problem foreseen;seek any additional information available from the province with respect to the problem through bilateral discussions, and make a report to the province within ninety days after sending the notice of concern; andif requested by the province, meet within a reasonable time to discuss the report.ExceptionThe Minister may act under subsection (1) without consultation if he or she is of the opinion that a sufficient time has expired after reasonable efforts to achieve consultation were made and that consultation will not be achieved.
2003, c. 15, s. 8.
Order reducing or withholding contributionIf the Governor in Council, on the referral of a matter under section 25.2, is of the opinion that the province does not or has ceased to comply with section 25.1, the Governor in Council may, by order,direct that any cash contribution under section 24.5 or 24.51 to that province for a fiscal year be reduced, in respect of each non-compliance, by an amount that the Governor in Council considers to be appropriate, having regard to the gravity of the non-compliance; orif the Governor in Council considers it appropriate, direct that the whole of any cash contribution under section 24.5 or 24.51 to that province for a fiscal year be withheld.Amending ordersThe Governor in Council may, by order, repeal or amend any order made under subsection (1) if the Governor in Council is of the opinion that the repeal or amendment is warranted in the circumstances.Copy of orderA copy of each order made under this section together with a statement of any findings on which the order was based must be sent without delay by registered mail to the government of the province concerned, and the Minister must have the order and statement laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the order is made.Commencement of orderAn order made under subsection (1) does not come into force earlier than thirty days after a copy of the order has been sent to the government of the province concerned under subsection (3).
2003, c. 15, s. 8;
2012, c. 19, s. 403.
Previous VersionReimposition of reductions or withholdingsIn the case of a continuing failure to comply with section 25.1, any reduction or withholding under section 25.3 of a cash contribution to a province for a fiscal year must be reimposed for each succeeding fiscal year as long as the Minister is satisfied, after consultation with the minister responsible for social assistance in the province, that the non-compliance is continuing.
2003, c. 15, s. 8.
When reduction or withholding imposedAny reduction or withholding under section 25.3 or 25.4 of a cash contribution may be imposed in the fiscal year in which the non-compliance that gave rise to the reduction or withholding occurred or in the following fiscal year.
2003, c. 15, s. 8.
Additional Withholding and DeductionDefinition of federal paymentIn this section, federal payment, in respect of a province, means a payment by Canada to the province under this or any other Act of Parliament or any fiscal arrangement or agreement between Canada and the province, whether enacted or entered into before or after the coming into force of this section.Additional withholding or reductionIf the Governor in Council makes an order under subsection 15(1) of the Canada Health Act or subsection 25.3(1) of this Act directing, in respect of a fiscal year, the withholding of an amount that, but for this section, would exceed the amount that could be withheld under that subsection, the Governor in Council may, in that order, deem any federal payment to the province to be, despite any provision of the Act, arrangement or agreement under which the federal payment is made, a cash contribution to that province for that fiscal year for the purpose of a reduction by, or a withholding of, the excess amount under either of those subsections, under section 16 or 17 of the Canada Health Act or under section 25.4 or 25.5 of this Act.Additional deductionIf the amount to be deducted under subsection 20(1) or (2) of the Canada Health Act for a fiscal year exceeds the amount from which it is to be deducted, the Governor in Council may, by order, deem any federal payment to the province to be, despite any provision in the Act, arrangement or agreement under which the federal payment is made, a cash contribution to that province for that fiscal year for the purpose of deducting the excess amount under that subsection or section 21 of that Act.
2003, c. 15, s. 8.
References in Other ActsReferences in other ActsEvery reference to “Canada Health and Social Transfer” in any other Act of Parliament is to be read as a reference to “Canada Health Transfer and the Canada Social Transfer”.
2003, c. 15, s. 8;
2012, c. 19, s. 404.
Previous VersionReportReport by MinistersThe Minister, the Minister of Health and the Minister of Human Resources and Skills Development may, together or individually, prepare a report on the administration and operation of this Part and have the report laid before each House of Parliament.
2003, c. 15, s. 8;
2005, c. 35, s. 67;
2012, c. 19, s. 694.
Previous VersionParliamentary ReviewReviewParliament having authorized the appropriation of money for the Canada Health Transfer and the Wait Times Reduction Transfer for the purpose of giving effect to the 2004 10-Year Plan to Strengthen Health Care, a review of the progress in implementing that Plan shall be undertaken by such committee of the Senate, of the House of Commons or of both Houses of Parliament as may be designated or established, using the reports referred to in the Plan. The committee shall undertake the review on or before March 31, 2008 and three years thereafter.ReportThe committee shall, within three months after beginning the review or within such further time as the Senate, the House of Commons or both Houses of Parliament, as the case may be, may authorize, submit a report on the result of that review to that House or both Houses.
2005, c. 11, s. 6.
CommuniquésCommuniquésFor greater certainty and for the purposes of this Part (V.1), the 2004 10-Year Plan to Strengthen Health Care includes the communiqués released in respect of the First Ministers’ Meeting on the Future of Health Care that was held from September 13 to 15, 2004.
2005, c. 11, s. 6.
ALTERNATIVE PAYMENTS FOR STANDING PROGRAMSDefinitionsIn this Part,authorizing instrument[Repealed, 1995, c. 17, s. 54]established programs[Repealed, 1995, c. 17, s. 54]special welfare program[Repealed, 1995, c. 17, s. 54]standing program[Repealed, 1995, c. 17, s. 54]tax abatementabattement fiscaltax abatement means the percentage that is applied to the “tax otherwise payable under this Part” within the meaning assigned by subsection 120(4) of the Income Tax Act to determine the amount that is deemed by subsection 120(2) of that Act to have been paid by an individual on account of the individual’s tax for a taxation year;taxation yearannée d’impositiontaxation year means a taxation year within the meaning of the Income Tax Act.
R.S., 1985, c. F-8, s. 26;
R.S., 1985, c. 11 (3rd Supp.), s. 10;
1995, c. 17, s. 54;
1999, c. 31, s. 239.
Increase of individual deduction under Income Tax ActWhere an agreement has, at any time before January 1, 1977, been entered into with a province under section 3 of the Established Programs (Interim Arrangements) Act, chapter E-8 of the Revised Statutes of Canada, 1970, the tax abatement applicable for the 1977 and subsequent taxation years shall be increased with respect to the income of an individual earned in any such taxation year in that province by adding to the percentage figure of the tax abatement both of the unit numbers set out in subsections (2) and (3).Tax abatement unitsThere shall be added 8.5 units where, in a province for a fiscal year, the Minister determines the increase under subsection (1) on the basis of the aggregate ofseventy-five per cent of the additional tax abatement applicable in respect of the province for the calendar year ending in the fiscal year, andtwenty-five per cent of the additional tax abatement applicable in respect of the province for the calendar year beginning in the fiscal year.Tax abatement unitsThere shall be added 5 units where, in a province for a fiscal year, the Minister determines the increase under subsection (1) on the basis of the calendar year ending in the fiscal year.
R.S., 1985, c. F-8, s. 27;
1995, c. 17, s. 55.
RecoveryThe amount of additional tax abatement applicable in respect of a province in a fiscal year, as determined by the Minister under section 27, must be recovered out of any moneys payable to the province under this Act or as a debt due to the Government of Canada by the province.
R.S., 1985, c. F-8, s. 28;
1995, c. 17, s. 55;
2012, c. 19, s. 405.
Previous VersionOver-recoveryIf the Minister determines that he or she has over-recovered any amount recoverable from a province under this Part, he or she must, within the prescribed time and in the prescribed manner, pay that province an amount equal to the over-recovery.
R.S., 1985, c. F-8, s. 29;
1995, c. 17, s. 55;
2012, c. 19, s. 405.
Previous VersionUnder-recoveryIf the Minister determines that he or she has under-recovered any amount recoverable from a province under this Part, he or she must recover an amount equal to the under-recovery eitherwithin the prescribed time and in the prescribed manner, from any amount payable under this Act to that province, orfrom that province as a debt due to Her Majesty in right of Canada.
2012, c. 19, s. 405.
Payment out of C.R.F.The amounts authorized under this Part to be paid by the Minister must be paid out of the Consolidated Revenue Fund at such times and in such manner as may be prescribed.
R.S., 1985, c. F-8, s. 30;
2012, c. 19, s. 405.
Previous VersionPROVINCIAL TAXES AND FEESInterpretation and Amendments to SchedulesDefinitionsIn this Part,participating provinceprovince signataireparticipating province means a province in respect of which there is in force a reciprocal taxation agreement entered into with the government of that province;provincial tax or feetaxe ou droit provincialprovincial tax or fee meansany tax of general application payable on a value, price or quantity basis by the purchaser, lessee, user or consumer of tangible personal property or services subject to the tax in respect of the sale, rental, consumption or use of the property or services, except to the extent that the tax is payable in respect of property or services acquired for resale, lease or sub-lease,any fee of general application payable by the owner, user or lessee of any vehicle or item of mobile equipment drawn, propelled or driven by any kind of power in respect of the registration of the vehicle or item or the licensing or certification thereof or in respect of the transfer or renewal of any registration permit, licence or certificate issued for the use of the vehicle or item, andany tax of a like nature to a tax described in paragraph (a) or any fee of a like nature to a fee described in paragraph (b) that is from time to time prescribed;reciprocal taxation agreementaccord de réciprocité fiscalereciprocal taxation agreement means an agreement referred to in section 32.Amendments to Schedule IOn consultation and agreement with the government of each participating province, the Governor in Council may, by order, amend Schedule Iby adding thereto the name of any corporation owned by Her Majesty in right of Canada; orby deleting therefrom the name of any corporation.Deemed amendment to Schedule IWhere a corporation is added or deemed to be added to Part I or II of Schedule III to the Financial Administration Act, the corporation shall be deemed to be added to Schedule I, and when that corporation is deleted from Part I or II of Schedule III to the Financial Administration Act, the corporation shall be deemed to be deleted from Schedule I.Amendments to Schedule IThe Governor in Council may, by order, amend Schedule Iby adding thereto the name of any port authority established under the Canada Marine Act; orby deleting therefrom the name of any port authority.Amendments to Schedule IIThe Governor in Council may, by order, amend Schedule IIby adding thereto the name of any corporation owned by Her Majesty in right of Canada; orby deleting therefrom the name of any corporation.
R.S., 1985, c. F-8, s. 31;
R.S., 1985, c. 11 (3rd Supp.), s. 11;
1998, c. 10, s. 168.
Reciprocal Taxation AgreementsReciprocal taxation agreementsNotwithstanding any other Act, the Minister may enter into reciprocal taxation agreements with the government of any province, providing, without restricting the generality of the foregoing, for all or any of the following matters, namelyfor the payment by Her Majesty in right of Canada of any provincial tax or fee imposed or levied under a law of that province that would be payable by Her Majesty in right of Canada if that law were applicable thereto;for the payment by Her Majesty in right of that province of any tax or fee imposed or levied under the Excise Tax Act that is payable by Her Majesty in right of that province and the waiver of the right to a payment in respect of that tax or fee provided in section 68.14 or 68.19 of that Act;for the payment by Her Majesty in right of Canada to that province or the assignees of that province of amounts determined under the agreement in respect of amounts paid by Her Majesty in right of that province and amounts paid by persons identified in the agreement as or on account of any tax imposed under the Excise Tax Act;for the payment by Her Majesty in right of Canada of interest on any amounts equal to any provincial tax or fee imposed or levied under a law of the province that would be collected by Her Majesty in right of Canada if that law were applicable to Her Majesty in right of Canada where those amounts have not been remitted or paid to the province at the rate and in the manner and at the time provided for in the applicable law of the province; andfor the collection and the remittance by Her Majesty in right of Canada of any provincial tax or fee imposed or levied under a law of the province that would be collected pursuant to that law by Her Majesty in right of Canada if that law were applicable to Her Majesty in right of Canada.
R.S., 1985, c. F-8, s. 32;
R.S., 1985, c. 7 (2nd Supp.), s. 74, c. 11 (3rd Supp.), s. 12;
1997, c. 10, s. 263.
Payment out of Consolidated Revenue FundThe amounts authorized to be paid by Her Majesty in right of Canada under a reciprocal taxation agreement may be paid out of the Consolidated Revenue Fund at such times and in such manner as may be prescribed.
1976-77, c. 10, s. 36.
Payment in Respect of Provincial Taxes and Fees by Crown CorporationsPayments in respect of provincial tax or fee imposed by participating provinceWhere, in respect of any transaction, matter or thing, a provincial tax or fee is imposed or levied under a law of a participating province and the provincial tax or fee would be payable by a corporation included in Schedule I if that law were applicable to the corporation, the corporation shall, in respect of any such transaction, matter or thing, pay the provincial tax or fee so imposed or levied as and when it would be required to do so if that law were applicable to it.
R.S., 1985, c. F-8, s. 34;
2007, c. 29, s. 55.
Previous VersionSettlement of disputesWhere a dispute involving a corporation named in Schedule I arises as to whether, or the extent to which, any tax or fee imposed or levied under a law of a participating province is a provincial tax or fee, or as to the amount payable in respect of a provincial tax or fee, the dispute may be settled by an action, suit or other proceeding brought or taken by or against the corporation in the name of the corporation in any court that would have jurisdiction if the corporation were not a corporation owned by Her Majesty in right of Canada.Practice and procedureSubject to subsection (3), the rules of practice and procedure of the court in which an action, suit or other proceeding is brought or taken pursuant to this section apply in that action, suit or other proceeding.Payment of judgmentNo execution shall issue on a judgment against a corporation named in Schedule I given in any action, suit or other proceeding brought or taken pursuant to this section, but any money awarded by the judgment shall be paid forthwith out of any funds administered by the corporation.
1976-77, c. 10, s. 38.
Payments in respect of provincial tax or fee imposed by non-participating provinceWhere, in respect of any transaction, matter or thing, a provincial tax or fee is imposed or levied under a law of a province that is not a participating province and the provincial tax or fee would be payable by a corporation named in Schedule II if that law were applicable to the corporation, the corporation shall, in respect of any such transaction, matter or thing, pay the provincial tax or fee so imposed or levied as and when it would be required to do so if that law were applicable to it.
1976-77, c. 10, s. 39.
Determination by Governor in Council in case of doubtWhere, in the opinion of the Governor in Council, a doubt exists as to whether, or the extent to which, any tax or fee imposed or levied under a law of a province that is not a participating province is a provincial tax or fee within the meaning of paragraph (a) or (b) of the definition of that term in subsection 31(1), the Governor in Council may determine whether, or the extent to which, as the case may be, the tax or fee shall be deemed for the purposes of this Part to be a provincial tax or fee.
1976-77, c. 10, s. 40.
GeneralLiability of Crown not affectedNothing in this Part or in any reciprocal taxation agreement shall be construed as limiting or otherwise affecting the liability of Her Majesty in right of Canada or of any corporation named in Schedule I or II to pay any tax or fee that Her Majesty in right of Canada or the corporation is otherwise liable to pay or that they would, but for this Part, be liable to pay.
1976-77, c. 10, s. 41.
Direction imperative notwithstanding any limitation expressed or impliedA direction in this Part to a corporation named in Schedule I or II to pay any provincial tax or fee shall be construed as a direction to the corporation to pay the tax or fee out of any moneys, securities or other property of the corporation, notwithstanding any prohibition or limitation affecting the powers of the corporation in that behalf expressed or implied in the Act or instrument by or under which the corporation is established or incorporated.
1976-77, c. 10, s. 42.
GENERALRegulationsRegulationsThe Governor in Council may make regulationsrespecting the determination of amounts that are to be computed under Part I or I.1;respecting the information that must be prepared and submitted by the Chief Statistician of Canada for the purposes of Parts I, I.1 and V.1;providing for the provincial or territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in each paragraph of the definition revenue source in subsections 3.5(1), 3.9(1) and 4(1);amending the definition revenue source in subsection 3.9(1) by dividing a revenue source set out in a paragraph of that definition into two or more separate revenue sources;[Repealed, 2007, c. 35, s. 168]respecting the calculation and payment to a province of advances on account of any amount that may become payable to the province under this Act, an administration agreement, a reciprocal taxation agreement or a sales tax harmonization agreement and the adjustment, by way of reduction or set off, of other payments to the province because of those advances;respecting the recovery of overpayments;prescribing the manner of determining the population of a province for a fiscal year;prescribing the time and manner of making any payment under this Act, an administration agreement or a sales tax harmonization agreement;prescribing the accounts to be kept for the purposes of this Act or an agreement entered into under the authority of this Act and the management of those accounts;respecting the determination of any matter that under this Act is to be determined by the Minister, the Minister of National Revenue, the Minister of Human Resources and Skills Development or the Minister of Health;prescribing anything that, by virtue of any other provision of this Act, is to be prescribed; andgenerally for carrying into effect the purposes and provisions of this Act.
R.S., 1985, c. F-8, s. 40;
1992, c. 10, s. 7;
1996, c. 8, s. 20, c. 11, s. 53;
1997, c. 10, s. 264;
1999, c. 11, s. 5, c. 31, s. 93;
2005, c. 7, s. 5, c. 35, s. 67;
2007, c. 29, s. 73, c. 35, s. 168;
2009, c. 2, s. 391;
2012, c. 19, ss. 406, 694.
Previous VersionSoftwood Lumber Products Export Charge Act, 2006RecoveryDespite any other provision of this Act, if, in any fiscal year, the costs referred to in paragraphs 99(1)(a) and (b) of the Softwood Lumber Products Export Charge Act, 2006 exceed the revenues, less any refunds, derived by Her Majesty in right of Canada from the charges imposed under sections 10 and 15 of that Act, then the amount of that excess may be recovered from any payments payable to provinces under this Act.RestrictionDespite subsection (1), the amount that may be recovered under that subsection with respect to a province for a fiscal year shall not exceed the difference between the aggregate of the amounts paid to that province under section 99 of the Softwood Lumber Products Export Charge Act, 2006 in prior fiscal years and the aggregate of the amounts that have been previously recovered under this section with respect to that province for those prior fiscal years.
R.S., 1985, c. 11 (3rd Supp.), s. 13;
1992, c. 10, s. 8;
2007, c. 29, s. 74.
Previous VersionPayment out of Consolidated Revenue FundPayment out of C.R.F.From and out of the Consolidated Revenue Fund there may, on the requisition of the Minister, be paid an amount authorized to be paid by Part I, I.1 or II at the times and in the manner that may be prescribed or, if no times and manner have been prescribed, at the times and in the manner set out in that Part.
R.S., 1985, c. F-8, s. 41;
2005, c. 7, s. 6;
2006, c. 4, s. 189.
Previous Version(Section 31)Atlantic Pilotage AuthorityAdministration de pilotage de l’AtlantiqueAtomic Energy of Canada LimitedÉnergie atomique du Canada, LimitéeBank of CanadaBanque du CanadaBelledune Port AuthorityAdministration portuaire de BelleduneBusiness Development Bank of CanadaBanque de développement du CanadaCanada Council for the ArtsConseil des Arts du CanadaCanada Deposit Insurance CorporationSociété d’assurance-dépôts du CanadaCanada Development Investment CorporationCorporation d’investissements au développement du CanadaCanada Lands Company LimitedSociété immobilière du Canada limitéeCanada Lands Company (Mirabel) LimitedSociété immobilière du Canada (Mirabel) limitéeCanada Lands Company (Le Vieux-Port de Montréal) LimitedSociété immobilière du Canada (Le Vieux-Port de Montréal) limitéeCanada Lands Company (Vieux-Port de Québec) Inc.Société immobilière du Canada (Vieux-Port de Québec) inc.Canada Mortgage and Housing CorporationSociété canadienne d’hypothèques et de logementCanada Museums Construction Corporation Inc.Société de construction des musées du Canada, Inc.Canada Post CorporationSociété canadienne des postesCanadian Broadcasting CorporationSociété Radio-CanadaCanadian Commercial CorporationCorporation commerciale canadienneCanadian Dairy CommissionCommission canadienne du laitCanadian Tourism CommissionCommission canadienne du tourismeCanadian Wheat BoardCommission canadienne du bléDefence Construction (1951) Ltd.Construction de défense (1951) LimitéeEldorado Aviation LimitedEldorado Aviation LimitéeEldorado Nuclear LimitedEldorado Nucléaire LimitéeExport Development CanadaExportation et développement CanadaFarm Credit CanadaFinancement agricole CanadaFraser River Port AuthorityAdministration portuaire du fleuve FraserFreshwater Fish Marketing CorporationOffice de commercialisation du poisson d’eau douceGreat Lakes Pilotage AuthorityAdministration de pilotage des Grands LacsHalifax Port AuthorityAdministration portuaire de HalifaxHamilton Port AuthorityAdministration portuaire de HamiltonInternational Development Research CentreCentre de recherches pour développement internationalLaurentian Pilotage AuthorityAdministration de pilotage des LaurentidesMarine Atlantic Inc.Marine Atlantique S.C.C.Montreal Port AuthorityAdministration portuaire de MontréalNanaimo Port AuthorityAdministration portuaire de NanaïmoNational Arts Centre CorporationCorporation du Centre national des ArtsNational Battlefields CommissionCommission des champs de bataille nationauxNational Capital CommissionCommission de la capitale nationaleNorth Fraser Port AuthorityAdministration portuaire du North-FraserPacific Pilotage AuthorityAdministration de pilotage du PacifiquePort Alberni Port AuthorityAdministration portuaire de Port-AlberniPrince Rupert Port AuthorityAdministration portuaire de Prince-RupertQuebec Port AuthorityAdministration portuaire de QuébecRoyal Canadian MintMonnaie royale canadienneSaguenay Port AuthorityAdministration portuaire du SaguenaySaint John Port AuthorityAdministration portuaire de Saint-JeanSept-Îles Port AuthorityAdministration portuaire de Sept-ÎlesStandards Council of CanadaConseil canadien des normesSt. John’s Port AuthorityAdministration portuaire de St. John’sTelefilm CanadaTéléfilm CanadaThe Seaway International Bridge Corporation, Ltd.La Corporation du Pont international de la voie maritime, LtéeThunder Bay Port AuthorityAdministration portuaire de Thunder BayToronto Port AuthorityAdministration portuaire de TorontoTrois-Rivières Port AuthorityAdministration portuaire de Trois-RivièresVancouver Port AuthorityAdministration portuaire de VancouverVIA Rail Canada Inc.VIA Rail Canada Inc.Windsor Port AuthorityAdministration portuaire de WindsorAny corporation that is a wholly-owned subsidiary, as defined in subsection 83(1) of the Financial Administration Act, of a corporation listed in this Schedule.Toute personne morale qui est la filiale à cent pour cent, au sens du paragraphe 83(1) de la Loi sur la gestion des finances publiques, d’une personne morale figurant à la présente annexe.
R.S., 1985, c. F-8, Sch. I;
R.S., 1985, c. 22 (1st Supp.), s. 11, c. 39 (1st Supp.), s. 1, c. 44 (1st Supp.), s. 2, c. 15 (2nd Supp.), s. 1, c. 28 (2nd Supp.), s. 2, c. 9 (3rd Supp.), ss. 1, 2, c. 31 (3rd Supp.), s. 1, c. 7 (4th Supp.), s. 3, c. 35 (4th Supp.), s. 13;
1991, c. 10, ss. 19, 20, c. 38, ss. 5, 26, 35;
1992, c. 1, s. 151;
1993, c. 34, s. 141;
1995, c. 24, s. 18, c. 28, ss. 48, 49, c. 29, s. 81;
1998, c. 10, ss. 169 to 172;
1999, c. 31, ss. 94, 95;
SOR/99-100, 181, 230, 251, 252;
2000, c. 23, s. 18, c. 28, s. 48;
SOR/2000-121;
2001, c. 22, ss. 12, 13, c. 33, ss. 19, 20, c. 34, s. 16;
R.S., 1985, c. 39 (1st Supp.), s. 1, c. 28 (2nd Supp.), s. 2, c. 9 (3rd Supp.), s. 1, c. 7 (4th Supp.), s. 4, c. 35 (4th Supp.), s. 13;
SOR/91-40.
RELATED PROVISIONS
— R.S., 1985, c. 46 (4th Supp.), s. 5(2)Subsection (1) is applicable to fiscal years ending after 1987.
— R.S., 1985, c. 46 (4th Supp.), s. 6(2)Subsection (1) is applicable to fiscal years ending after 1987, except that in the application of paragraph 12.2(1)(b) of the said Act, as enacted by subsection (1), to taxation years that end before July, 1988, the reference therein to “5/2 of” shall be read as a reference to “2 times”.
— 1990, c. 39, s. 56(2)Subsection (1) is applicable with respect to taxation years ending after 1989.
— 1998, c. 19, s. 285.1(2)Subsection (1) applies to the 1997-98 and subsequent fiscal years.
— 2007, c. 29, s. 75Amounts paid before coming into force (Part I)For the fiscal year beginning on April 1, 2007, the fiscal equalization payment that may be paid to a province under Part I of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of fiscal equalization payments paid to that province for that fiscal year before the day on which this Act receives royal assent.
— 2007, c. 29, s. 76Amounts paid before coming into force (Part I.1)For the fiscal year beginning on April 1, 2007, the territorial formula financing payment that may be paid to a territory under Part I.1 of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of the territorial formula financing payments paid to that territory for that fiscal year before the day on which this Act receives royal assent.
— 2007, c. 29, s. 77Amounts paid before coming into force (Part V.1)For the fiscal year beginning on April 1, 2007, the Canada Health Transfer and Canada Social Transfer payments that may be paid to a province under Part V.1 of the Federal-Provincial Fiscal Arrangements Act, as amended by sections 64 to 72 of this Act, shall be adjusted by deducting all of the Canada Health Transfer and Canada Social Transfer payments paid to that province for that fiscal year before the day on which this Act receives royal assent.
— 2007, c. 35, s. 173Calculation re fiscal year 2008-2009If section 165 of this Act comes into force after a calculation has already been made under section 3.91 of the Federal-Provincial Fiscal Arrangements Act of the fiscal equalization payment that may be paid to a province under section 3.6 of that Act for the fiscal year beginning on April 1, 2008, the Minister of Finance may, under section 3.91 of that Act, as enacted by section 165 of this Act, recalculate the fiscal equalization payment that may be paid to the province under section 3.6 of the Federal-Provincial Fiscal Arrangements Act for that fiscal year.
— 2007, c. 35, s. 174Effect of election by Newfoundland and Labrador — fiscal year 2007-2008For the fiscal year that begins on April 1, 2007, if Newfoundland and Labrador makes the election under subsection 3.7(1) of the Federal-Provincial Fiscal Arrangements Act,section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act shall be read as follows:The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate ofthe amount, if any, by whichthe fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act,is less thanwhere the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, orwhere the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per centof the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, andthe phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by whichthe aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under Part I of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal yearis greater thanthe aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.a reference to average in section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act, except within the expression national average per capita fiscal capacity, shall be considered to mean a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%; andthe definition fiscal equalization payment in section 18 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:fiscal equalization payment meansfor the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; andfor the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formulaA + B + (C / F)whereA,B, C and F have the same meaning as in the definition total per capita fiscal capacity in subsection 3.5(1) of that Act.Effect of election by Nova Scotia — fiscal year 2007-2008For the fiscal year that begins on April 1, 2007, if Nova Scotia makes the election under subsection 3.7(1) of the Federal-Provincal Fiscal Arrangements Act, the definition fiscal equalization payment in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act shall be read as follows:fiscal equalization payment means for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; andfor the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formulaA + B + (C / F)whereA,B, C and F have the same meaning as in the definition total per capita fiscal capacity in subsection 3.5(1) of that Act.Effect of election by Newfoundland and Labrador — fiscal year 2008-2009For the fiscal year that begins on April 1, 2008, if Newfoundland and Labrador does not make the election under subsection 3.7(3) of the Federal-Provincial Fiscal Arrangements Act and made, in respect of the preceding fiscal year, the election under subsection 3.7(1) of that Act,the portion of paragraph 220(a) of the Canada-Newfoundland Atlantic Accord Implementation Act after subparagraph (iv) shall be read as follows:of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year as this paragraph read for that fiscal year, andsubparagraph 220(b)(i) of that Act shall be read as follows:the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province under section 3.1 of the Federal-Provincial Fiscal Arrangements Act for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year as that paragraph read for that fiscal year
— 2010, c. 25, s. 144(2)Part IV.01 of the Act, as enacted by subsection (1), is deemed to have come into force on on March 4, 2010.
— 2010, c. 25, s. 145(2)Part IV.2 of the Act, as enacted by subsection (1), applies in respect of the 1998 and subsequent taxation years.
— 2012, c. 31, s. 97(2)Part IV.11 of the Act, as enacted by subsection (1), applies in respect of the 2007 and subsequent taxation years.
— 2012, c. 31, s. 98(2)Part IV.3 of the Act, as enacted by subsection (1), applies in respect of the 2012 and subsequent taxation years.AMENDMENTS NOT IN FORCE
— 2011, c. 25, s. 61Schedule 1 to the Federal-Provincial Fiscal Arrangements Act is amended by striking out the following:Canadian Wheat Board Commission canadienne du blé