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Federal-Provincial Fiscal Arrangements Act (R.S.C., 1985, c. F-8)

Act current to 2022-08-08 and last amended on 2022-06-23. Previous Versions

PART V.1Canada Health Transfer, Canada Social Transfer and Wait Times Reduction Transfer (continued)

Reduction or Withholding (continued)

Marginal note:Reimposition of reductions or withholdings

 In 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

Marginal note:When reduction or withholding imposed

 Any 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 Deduction

Marginal note:Definition of federal payment

  •  (1) In 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.

  • Marginal note:Additional withholding or reduction

    (2) If 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.

  • Marginal note:Additional deduction

    (3) If 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 Acts

Marginal note:References in other Acts

 Every 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

Report

Marginal note:Report by Ministers

 The Minister, the Minister of Health and the Minister of Employment and Social 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
  • 2013, c. 40, s. 238

Parliamentary Review

Marginal note:Review

  •  (1) Parliament 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.

  • Marginal note:Report

    (2) The 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

Communiqués

Marginal note:Communiqués

 For 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

PART VIAlternative Payments for Standing Programs

Marginal note:Definitions

 In this Part,

authorizing instrument

authorizing instrument[Repealed, 1995, c. 17, s. 54]

established programs

established programs[Repealed, 1995, c. 17, s. 54]

special welfare program

special welfare program[Repealed, 1995, c. 17, s. 54]

standing program

standing program[Repealed, 1995, c. 17, s. 54]

tax abatement

tax 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; (abattement fiscal)

taxation year

taxation year means a taxation year within the meaning of the Income Tax Act. (année d’imposition)

  • 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

Marginal note:Increase of individual deduction under Income Tax Act

  •  (1) Where 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).

  • Marginal note:Tax abatement units

    (2) There 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 of

    • (a) seventy-five per cent of the additional tax abatement applicable in respect of the province for the calendar year ending in the fiscal year, and

    • (b) twenty-five per cent of the additional tax abatement applicable in respect of the province for the calendar year beginning in the fiscal year.

  • Marginal note:Tax abatement units

    (3) There 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

Marginal note:Recovery

 The 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

Marginal note:Over-recovery

 If 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

Marginal note:Under-recovery

 If 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 either

  • (a) within the prescribed time and in the prescribed manner, from any amount payable under this Act to that province, or

  • (b) from that province as a debt due to Her Majesty in right of Canada.

  • 2012, c. 19, s. 405

Marginal note: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

PART VIIProvincial Taxes and Fees

Interpretation and Amendments to Schedules

Marginal note:Definitions

  •  (1) In this Part,

    participating province

    participating province means a province in respect of which there is in force a reciprocal taxation agreement entered into with the government of that province; (province signataire)

    provincial tax or fee

    provincial tax or fee means

    • (a) any 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,

    • (b) 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, and

    • (c) any 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; (taxe ou droit provincial)

    reciprocal taxation agreement

    reciprocal taxation agreement means an agreement referred to in section 32. (accord de réciprocité fiscale)

  • Marginal note:Amendments to Schedule I

    (2) On consultation and agreement with the government of each participating province, the Governor in Council may, by order, amend Schedule I

    • (a) by adding thereto the name of any corporation owned by Her Majesty in right of Canada; or

    • (b) by deleting therefrom the name of any corporation.

  • Marginal note:Deemed amendment to Schedule I

    (2.1) Where 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.

  • Marginal note:Amendments to Schedule I

    (2.2) The Governor in Council may, by order, amend Schedule I

    • (a) by adding thereto the name of any port authority established under the Canada Marine Act; or

    • (b) by deleting therefrom the name of any port authority.

  • Marginal note:Amendments to Schedule II

    (3) The Governor in Council may, by order, amend Schedule II

    • (a) by adding thereto the name of any corporation owned by Her Majesty in right of Canada; or

    • (b) by 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 Agreements

Marginal note:Reciprocal taxation agreements

 Notwithstanding 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, namely

  • (a) for 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;

  • (b) 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;

  • (c) 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;

  • (d) 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; and

  • (e) for 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

Marginal note:Payment out of Consolidated Revenue Fund

 The 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 Corporations

Marginal note:Payments in respect of provincial tax or fee imposed by participating province

 Where, 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

Marginal note:Settlement of disputes

  •  (1) Where 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.

  • Marginal note:Practice and procedure

    (2) Subject 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.

  • Marginal note:Payment of judgment

    (3) No 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
 
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