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

Marginal note:Transfer

24.62 The Wait Times Reduction Transfer shall consist of

• (a) the cash contribution referred to in subsection 24.63(1); and

• (b) the cash contributions referred to in subsection 24.64(1).

Marginal note:Payment to trust

• 24.63 (1) The 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.

• Marginal note:Provincial share

  (2) The 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.

• Marginal note:Payment out of C.R.F.

  (3) 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.

Marginal note:Cash contributions to provinces

• 24.64 (1) For 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.

• Marginal note:Provincial share

  (2) The 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 dividing

  • (a) the population of the province for the fiscal year

  by

  • (b) the total of the population of all provinces for the fiscal year.

Total Equalized Tax Transfer

Marginal note:Total equalized tax transfer — fiscal years 2004-2005 to 2006-2007

• 24.7 (1) The 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 of

  • (a) the 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, and

  • (b) the amount equal to the lesser of

    • (i) the equalization payment referred to in subsection (1.1) that would be payable to the province for the fiscal year, and

    • (ii) the 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 that

      • (A) for the purposes of the calculation under this subparagraph, the relevant revenue bases are to be determined in the prescribed manner, and

      • (B) where 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.

• Marginal note:Equalization payment payable

  (1.1) For the purposes of subparagraph (1)(b)(i),

  • (a) 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; and

  • (b) for the fiscal year beginning on April 1, 2004, the equalization payment shall be

    • (i) in 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, and

    • (ii) in 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.

• Marginal note:Total equalized tax transfer — fiscal years 2007–2008 to 2010–2011

  (1.2) The 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 of

  • (a) 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, and

  • (b) in the case of a territory, zero, and in the case of a province, the amount equal to the lesser of

    • (i) the equalization payment payable to that province for that fiscal year under Part I, and

    • (ii) an amount equal to the greater of

      • (A) the product obtained by multiplying

        • (I) the 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 year

        by

        • (II) the population of that province for that fiscal year, and

      • (B) zero.

• Marginal note:Total equalized tax transfer — fiscal year 2009–2010

  (1.21) Despite subsection (1.2), the total equalized tax transfer applicable to a province for the fiscal year beginning on April 1, 2009 is

  • (a) for Ontario, $5,531,594,000;

  • (b) for Quebec, $3,007,447,000;

  • (c) for Nova Scotia, $363,132,000;

  • (d) for New Brunswick, $289,145,000;

  • (e) for Manitoba, $468,518,000;

  • (f) for British Columbia, $1,649,531,000;

  • (g) for Prince Edward Island, $54,129,000;

  • (h) for Saskatchewan, $302,432,000;

  • (i) for Alberta, $2,129,928,000;

  • (j) for Newfoundland and Labrador, $123,276,000;

  • (k) for Yukon, $11,131,000;

  • (l) for the Northwest Territories, $22,794,000; and

  • (m) for Nunavut, $8,510,000.

• Marginal note:Total equalized tax transfer — fiscal year 2011-2012 and later

  (1.22) The 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 and

  • (a) in 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 of

    • (i) the equalization payment payable to that province for that fiscal year under Part I, and

    • (ii) the amount equal to the product obtained by multiplying

      • (A) the 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 year

      by

      • (B) the population of that province for that fiscal year; or

  • (b) in any other case, zero.

• Marginal note:Revenue sources

  (1.3) For 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.

• Marginal note:Federal income tax reduction

  (2) For 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 of

  • (a) 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,

    • (i) 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,

    • (ii) 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, and

    • (iii) on 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,

  • (b) 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,

    • (i) 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,

    • (ii) 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, and

    • (iii) on 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,

  • (c) 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, and

  • (d) 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 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.

Transition Protection

Marginal note:Prevention of transfer declines — Canada Health Transfer

• 24.701 (1) The Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by which

  • (a) the 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, 2007

  exceeds

  • (b) the 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.

• Marginal note:Prevention of transfer declines — fiscal year 2014-2015 and later

  (1.1) The Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2014 equal to the amount by which

  • (a) the 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,

  exceeds

  • (b) the 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.

• Marginal note:Prevention of transfer declines — Canada Social Transfer

  (2) The Minister may pay to a province an additional cash payment for each fiscal year beginning after March 31, 2007 equal to the amount by which

  • (a) the 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, 2007

  exceeds

  • (b) the 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.

Marginal note:Payments to Ontario

24.702 The Minister may pay to Ontario an additional cash payment equal to

• (a) for the fiscal year beginning on April 1, 2009, the amount of $489,058,000; and

• (b) for the fiscal year beginning on April 1, 2010, the amount determined by the formula

  -1 × A × B

  where

  A

  is the amount determined for Ontario under subclause 24.7(1.2)(b)(ii)(A)(I) for that fiscal year, and

  B

  is the population of Ontario for that fiscal year.

Marginal note:Payments to Saskatchewan and Newfoundland and Labrador

24.703 The Minister may pay an additional cash payment for the fiscal year beginning on April 1, 2010 equal to,

• (a) for Saskatchewan, $7,304,000; and

• (b) for Newfoundland and Labrador, $8,408,000.