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Federal-Provincial Fiscal Arrangements Regulations, 2007 (SOR/2007-303)

Regulations are current to 2024-05-01 and last amended on 2024-04-01. Previous Versions

PART 1Fiscal Equalization Payments (continued)

DIVISION 2Nova Scotia (continued)

[
  • SOR/2013-225, s. 7
]

Revenue Base

  •  (1) For the purpose of sections 3.71 to 3.9 of the Act, the expression revenue base means, in respect of a revenue source for a fiscal year,

    • (a) in the case of personal income taxes described in paragraph 7(1)(a), the aggregate of

      • (i) a fraction, expressed as a percentage for the province,

        • (A) whose numerator is the simulated average revenue yield relating to personal income for the province for the taxation year that ends in the fiscal year, as determined in accordance with subsection 10(2), and

        • (B) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and

      • (ii) the difference obtained by subtracting

        • (A) a fraction, expressed as a percentage for the province,

          • (I) whose numerator is the aggregate, over all individuals — not including trusts — in the province, of the federal income tax as determined by the micro-simulation model for the taxation year that ends in the fiscal year, and

          • (II) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in subclause (I),

        from

        • (B) a fraction, expressed as a percentage for the province,

          • (I) whose numerator is the aggregate, over all individuals in the province – including trusts – of the federal income tax payable for the taxation year that ends in the fiscal year as determined for each individual, and

          • (II) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in subclause (I);

    • (b) in the case of the taxes and revenues described in paragraph 7(1)(b), the aggregate of

      • (i) the product of the portion of the aggregate of corporate profits in Canada, before the payment of income taxes and without any deduction of the aggregate of corporate losses in Canada, that is attributable to any of the 10 provinces for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of Macroeconomic Accounts, and a fraction

        • (A) whose numerator is the allocated corporation taxable income attributable to the province for the fiscal year, and

        • (B) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and

      • (ii) the product, as determined on the basis of data prepared by Statistics Canada for the purpose of the Government Finance Statistics, of

        • (A) the aggregate, over all provinces, of the total profits, before the distribution of dividends, that are attributable to the province for the calendar year that ends in the fiscal year from business enterprises that have a profit in that calendar year and are owned 90% or more by that province, or by that province and one or more other provinces, excluding the profits for that calendar year

          • (I) of a liquor board, commission or authority,

          • (II) of an enterprise engaged entirely or primarily in the marketing of oil or natural gas,

          • (III) of an enterprise carrying on a provincial lottery, and

          • (IV) of the Ontario Electricity Financial Corporation and the Nova Scotia Power Finance Corporation, and

        • (B) a fraction whose numerator is the amount of the total profits referred to in clause (A) that are attributable to the province less the amount by which any losses that were accumulated in the seven calendar years before that calendar year by a business enterprise referred to in that clause exceed the portion of those losses subtracted under this clause for that business enterprise in relation to that period, but only to the extent that the amount is not more than the total profits for that calendar year of that business enterprise, and whose denominator is the aggregate, over all provinces, of those numerators;

    • (c) in the case of taxes on capital of corporations, described in paragraph 7(1)(c), the sum of

      • (i) the aggregate, over the following industry categories established by Statistics Canada on the basis of the North American Industry Classification System, of the total taxable paid-up capital employed in the province for the calendar year that ends in the fiscal year in respect of the corporations in each category that are owned less than 90% by Her Majesty and have more than $1,000,000 of total assets:

        • (A) the agriculture, forestry, fishing and hunting sector, other than the crop production and the animal production and aquaculture subsectors,

        • (B) the oil and gas extraction industry group and the coal mining industry group,

        • (C) the mining and quarrying (except oil and gas) subsector, other than the coal mining industry group,

        • (D) the utilities sector,

        • (E) the construction sector,

        • (F) the manufacturing sector,

        • (G) the wholesale trade sector,

        • (H) the retail trade sector,

        • (I) the transportation and warehousing sector,

        • (J) the information and cultural industries sector,

        • (K) the real estate and rental and leasing sector,

        • (L) the professional, scientific and technical services sector,

        • (M) the administrative and support, waste management and remediation services sector,

        • (N) the educational services sector,

        • (O) the health care and social assistance sector,

        • (P) the arts, entertainment and recreation sector,

        • (Q) the accommodation and food services sector,

        • (R) the other services (except public administration) sector,

        • (S) the non-depository credit intermediation industry group,

        • (T) the finance and insurance sector, excluding the non-depository credit intermediation, depository credit intermediation and insurance carriers industry groups, and

        • (U) the depository credit intermediation industry group, excluding the local credit unions industry,

        as determined for each category by the formula

        (A × B × C) /At

        where

        A
        is the total assets, for the province for the calendar year, of those corporations in each category, as determined by the Industrial Organization and Finance Division of Statistics Canada,
        At
        is the total assets, for Canada for the calendar year, of those corporations in that category, as determined by the Industrial Organization and Finance Division of Statistics Canada,
        B
        is
        • (I) in respect of the categories listed in clauses (A) to (T), the aggregate, over all provinces, of each province’s rate of capital tax that applies to non-financial institutions, multiplied by a fraction whose numerator is the total paid-up capital employed in that province by those corporations in those categories, and whose denominator is the aggregate, over all provinces, of those numerators, and

        • (II) in respect of the category listed in clause (U), the aggregate, over all provinces, of each province’s rate of capital tax that applies to financial institutions, multiplied by a fraction whose numerator is the total equity employed in the province by those corporations in that category, and whose denominator is the aggregate, over all provinces, of those numerators, and

        C
        is
        • (I) for each of the categories listed in clauses (A) to (T), the amount, in respect of those corporations in that category, as determined by the Industrial Organization and Finance Division of Statistics Canada on the basis of data for the calendar year, determined by the formula

          {1 - [(D + E + F + G + H) / (R + (I × (K - J)) / K)]} × {(L + M + N + P + Q) + [I × (K - J) / K]}

          where

          D
          is cash and deposits,
          E
          is investments and accounts with affiliated entities,
          F
          is portfolio investments, excluding Government of Canada treasury bills,
          G
          is mortgage or hypothecary loans to non-affiliated entities,
          H
          is non-mortgage or non-hypothecary loans to non-affiliated corporations,
          I
          is accumulated depreciation,
          J
          is capital cost allowance,
          K
          is book depreciation for Canada,
          L
          is the amount owing to affiliated entities,
          M
          is borrowing by non-affiliated entities,
          N
          is deferred income tax,
          P
          is other liabilities, including minority interests in consolidated subsidiaries,
          Q
          is total equity, and
          R
          is total assets for Canada, and
        • (II) for the category listed in clause (U), the total equity employed in the province in that calendar year by all corporations in that category,

      • (ii) the taxable paid-up capital employed in the province for the calendar year that ends in the fiscal year in respect of all corporations in the categories referred to in subparagraph (i) that are owned 90% or more by Her Majesty and have more than $1,000,000 of total assets, as determined by the formula

        (AA × CC) /AAt

        where

        AA
        is the total assets, for the province for the calendar year, of those corporations, as determined by the Industrial Organization and Finance Division of Statistics Canada,
        AAt
        is the total assets, for Canada for the calendar year, of all corporations in the categories referred to in subparagraph (i) that have more than $1,000,000 of total assets, other than those referred to in AA, as determined by the Industrial Organization and Finance Division of Statistics Canada, and
        CC
        is 32% of the aggregate, over all the categories referred to in subparagraph (i), of the product of B and C for each category in that subparagraph, and
      • (iii) the product of

        • (A) the sum of the amount of the outstanding, provincially guaranteed debt of electric utilities owned by the province and all outstanding amounts advanced by the province to those electric utilities, as of the end of the taxation year of each electric utility ending in the previous fiscal year, as determined by the Minister on the basis of the public accounts of the province and other relevant information, and

        • (B) a fraction

          • (I) whose numerator is the quotient that results from dividing the total revenues derived for the fiscal year for all provinces from the taxes, levies and fees described in subparagraph 7(1)(c)(ii), as determined by the Minister, by the aggregate, over all provinces, of the sums referred to in clause (A) for that fiscal year, and

          • (II) whose denominator is the quotient that results from dividing the total revenues derived for the fiscal year for all provinces from the taxes described in subparagraph 7(1)(c)(i), as determined by the Minister, by the aggregate, over all provinces, of the amounts determined under subparagraphs (i) and (ii) for the fiscal year;

    • (d) in the case of general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes, as described in paragraph 7(1)(d), the amount determined on the basis of data provided by Statistics Canada for the calendar year that ends in the fiscal year by the formula

      A + B + C + D + E + F + G + H + I + J

      where

      A
      is the aggregate, over all household final consumption expenditure categories, of the household final consumption expenditures in the province for each category multiplied by a fraction whose numerator is the total of those expenditures in all provinces for that category from which general provincial sales tax revenues are derived and whose denominator is the total household final consumption expenditures in all provinces for that category,
      B
      is the aggregate, over all housing expenditure categories, of the housing expenditures in the province for each category multiplied by a fraction whose numerator is the total of those expenditures in all provinces for that category from which general provincial sales tax revenues are derived and whose denominator is the total housing expenditures in all provinces for that category,
      C
      is the capital expenditures for machinery and equipment in the province by the business sector multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that sector from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for machinery and equipment in all provinces by that sector,
      D
      is the capital expenditures for non-residential structures in the province by the business sector multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that sector from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for non-residential structures in all provinces by that sector,
      E
      is the aggregate, over all public or non-profit entity categories, of the capital expenditures for machinery and equipment in the province by each category multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that category from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for machinery and equipment in all provinces by that category,
      F
      is the aggregate, over all public or non-profit entity categories, of the capital expenditures for non-residential structures in the province by each category multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that category from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for non-residential structures in all provinces by that category,
      G
      is the aggregate, over all non-business sector industries and all intermediate input commodities, of the intermediate input expenditures in the province for each commodity by each industry multiplied by a fraction whose numerator is the total of those expenditures in all provinces for that commodity by that industry from which general provincial sales tax revenues are derived and whose denominator is the total intermediate input expenditures in all provinces for that commodity by that industry,
      H
      is the aggregate, over all business sector industries and all intermediate input commodities, of the intermediate input expenditures in the province for each commodity by each industry multiplied by a fraction whose numerator is the total of those expenditures in all provinces for that commodity by that industry from which general provincial sales tax revenues are derived and whose denominator is the total intermediate input expenditures in all provinces for that commodity by that industry,
      I
      is the capital expenditures for intellectual property products in the province by the business sector multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that sector from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for intellectual property products in all provinces by that sector, and
      J
      is the aggregate, over all public or non-profit entity categories, of the capital expenditures for intellectual property products in the province by each category multiplied by a fraction whose numerator is the total of those expenditures in all provinces by that category from which general provincial sales tax revenues are derived and whose denominator is the total capital expenditures for intellectual property products in all provinces by that category;
    • (e) in the case of tobacco taxes described in paragraph 7(1)(e), the number of cigarettes sold to final purchasers in the province in the fiscal year as determined by dividing the revenue derived from tobacco taxes by the province in the fiscal year, as set out in the certificate, by the average annual tax levy per cigarette that applies in that province for that fiscal year;

    • (f) in the case of motive fuel taxes derived from the sale of gasoline, described in paragraph 7(1)(f), the sum of

      • (i) the product of the average tax rate in the calendar year that ends in the fiscal year and the adjusted number of litres of gasoline taxed at road-use rate in the province in that year,

      • (ii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of aviation and turbo fuel sold in the province in that year, as determined by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold, and

      • (iii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of gasoline sold for use by farm trucks in the province in that year;

    • (g) in the case of motive fuel taxes derived from the sale of diesel fuel, described in paragraph 7(1)(g), the sum of

      • (i) the product of the average tax rate in the calendar year that ends in the fiscal year and the adjusted number of litres of diesel fuel taxed at road-use rate in the province in that year,

      • (ii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of railway fuel sold in the province in that year as determined

        • (A) in the case where railway fuel is taxed in the province throughout that year and data on the tax is complete and available, by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold, and

        • (B) in any other case, by the Minister on the basis of data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada, and

      • (iii) the product of the average tax rate in the calendar year that ends in the fiscal year and the number of litres of diesel fuel sold for use by farm trucks in the province in that year;

    • (h) in the case of non-commercial motor vehicle licensing revenues described in paragraph 7(1)(h), the sum of the following numbers in the province in the calendar year that ends in the fiscal year, each as determined by Statistics Canada for the purpose of CANSIM table 405-0004, Road motor vehicles, registrations, or by the Minister if Statistics Canada does not make the determination:

      • (i) the number of registrations of on-road motor vehicles weighing less than 4 500 kg, and

      • (ii) four tenths of the number of registrations of on-road motorcycles and mopeds;

    • (i) in the case of commercial motor vehicle licensing revenues described in paragraph 7(1)(i), the aggregate, over the following categories of vehicles, of the number of registered vehicles in each category, as determined by Statistics Canada for the purpose of CANSIM table 405-0004, Road motor vehicles, registrations, multiplied by the weighted average licence fee for that category over all provinces, as calculated on the basis of data respecting licence fees charged by each province contained in the R.L. Polk & Co. publication Canadian and International Registration Manual:

      • (i) farm vehicles weighing at least 4 500 kg but less than 15 000 kg,

      • (ii) farm vehicles weighing at least 15 000 kg,

      • (iii) non-farm vehicles weighing at least 4 500 kg but less than 15 000 kg, and

      • (iv) non-farm vehicles weighing at least 15 000 kg;

    • (j) in the case of alcoholic beverage revenues described in paragraph 7(1)(j), the sum of

      • (i) the revenue derived by all provinces from the sale of spirits in the fiscal year, as determined by the Minister on the basis of information provided by the provinces and Statistics Canada, multiplied by a fraction whose numerator is the volume of spirits sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0024, Sales of alcoholic beverages by volume, value and per capita 15 years and over, fiscal years ended March 31, and whose denominator is the aggregate, over all provinces, of those numerators,

      • (ii) the revenue derived by all provinces from the sale of wine in the fiscal year, as determined by the Minister on the basis of information provided by the provinces and Statistics Canada, multiplied by a fraction whose numerator is the volume of wine sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0024, Sales of alcoholic beverages by volume, value and per capita 15 years and over, fiscal years ended March 31, and whose denominator is the aggregate, over all provinces, of those numerators, and

      • (iii) the revenue derived by all provinces from the sale of beer in the fiscal year, as determined by the Minister on the basis of information provided by the provinces and Statistics Canada, multiplied by a fraction whose numerator is the volume of beer sold in the province in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0024, Sales of alcoholic beverages by volume, value and per capita 15 years and over, fiscal years ended March 31, and whose denominator is the aggregate, over all provinces, of those numerators;

    • (k) in the case of hospital and medical care insurance premiums described in paragraph 7(1)(k), the amount determined by the formula

      (A × B/C) + (D × E/F)

      where

      A
      is the value of hospital and medical care insurance premiums, as determined by the micro-simulation model, for the taxation year that ends in the previous fiscal year, that
      • (i) in the case of British Columbia, the province derives from its hospital and medical care insurance premium system, and

      • (ii) in the case of any other province, would be derived by the province if British Columbia’s hospital and medical care insurance premium system applied in the province,

      B
      is the revenue derived by British Columbia in the fiscal year from hospital and medical care insurance premiums,
      C
      is the aggregate, over all provinces, of the amounts determined for D,
      D
      is the value of hospital and medical care insurance premiums, as determined by the micro-simulation model, for the taxation year that ends in the previous fiscal year, that
      • (i) in the case of Quebec, the province derives from its hospital and medical care insurance premium system, and

      • (ii) in the case of any other province, would be derived by the province if Quebec’s hospital and medical care insurance premium system applied in the province,

      E
      is the revenue derived by Quebec in the fiscal year from hospital and medical care insurance premiums, as set out in the certificate, and
      F
      is the aggregate, over all provinces, of the amounts determined for G;
    • (l) in the case of forestry revenues described in paragraph 7(1)(l),

      • (i) from Crown land in the province, the value of production from logging on that land in the calendar year that ends in the fiscal year, which is the aggregate of the following products, for each of which the net merchantable volume is determined by Natural Resources Canada’s Canadian Forest Service for the purpose of its National Forestry Database, Table 5.1, Net Merchantable Volume of Roundwood Harvested by Category, Ownership, and Province/Territory:

        • (A) the net marketable volume of hardwood logs and bolts harvested from that land multiplied by the regional price of hardwood logs and bolts,

        • (B) the net marketable volume of softwood logs and bolts harvested from that land multiplied by the regional price of softwood logs and bolts,

        • (C) the net marketable volume of softwood pulpwood harvested from that land multiplied by the regional price of softwood pulpwood,

        • (D) the net marketable volume of hardwood pulpwood harvested from that land multiplied by the regional price of hardwood pulpwood,

        • (E) the net marketable volume of industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), harvested from that land multiplied by the regional price of industrial roundwood, other than industrial roundwood referred to in clauses (A) to (D), and

        • (F) the net marketable volume of fuelwood and firewood harvested from that land multiplied by the regional price of fuelwood and firewood, and

      • (ii) from private land in the province, the value of production from logging on that land in the calendar year that ends in the fiscal year, which is the sum of the products referred to in clauses (i)(A) to (F), for each of which the net merchantable volume is determined by Natural Resources Canada’s Canadian Forest Service for the purpose of its National Forestry Database, Table 5.1, Net Merchantable Volume of Roundwood Harvested by Category, Ownership, and Province/Territory;

    • (m) in the case of oil revenues described in paragraph 7(1)(m), the product of

      • (i) the total value of the marketable production of new oil from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production whose value is described in subparagraph (o)(i) and paragraph (p), and

      • (ii) the adjustment factor for oil referred to in subsection (3);

    • (n) in the case of oil revenues described in paragraph 7(1)(n), the product of

      • (i) the total value of the marketable production of crude oil from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, less the value of the parts of that marketable production described in subparagraphs (m)(i) and (o)(i), paragraph (p) and subparagraphs (q)(i) and (r)(i), and

      • (ii) the adjustment factor for oil referred to in subsection (3);

    • (o) in the case of heavy oil revenues described in paragraph 7(1)(o), the product of

      • (i) the total value of the marketable production of crude oil, having a density of 935 kg/m3 or greater, from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production described in paragraph (p) and subparagraph (r)(i), and

      • (ii) the adjustment factor for oil referred to in subsection (3);

    • (p) in the case of mined oil revenues described in paragraph 7(1)(p), the total value of the marketable production of synthetic petroleum from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction;

    • (q) in the case oil revenues referred to in paragraph 7(1)(q), the product of

      • (i) the total value of the marketable production of third tier oil from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production described in paragraph (p) and subparagraph (r)(i), and

      • (ii) the adjustment factor for oil referred to in subsection (3);

    • (r) in the case of oil revenues described to in paragraph 7(1)(r), the product of

      • (i) the total value of the marketable production of third tier oil, having a density of 935 kg/m3 or greater, from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the part of that marketable production described in paragraph (p), and

      • (ii) the adjustment factor for oil referred to in subsection (3);

    • (s) in the case of revenues from domestically sold natural gas and exported natural gas, described in paragraph 7(1)(s), the product of

      • (i) the total value of the marketable production of gas and gas by-products from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, and

      • (ii) the adjustment factor for natural gas referred to in subsection (5);

    • (t) in the case of sales of Crown leases and reservations on oil and natural gas lands, described in paragraph 7(1)(t),

      • (i) if the revenue to be equalized from those sales in the province for the fiscal year is greater than or equal to the aggregate, over the revenue sources set out in paragraphs (m), (o), (q), (r) and (s) of the definition revenue source in subsection 3.9(1) of the Act, of the product of the revenue base for that revenue source in the province for the fiscal year and the national average rate of tax for that revenue source for the fiscal year, the revenue to be equalized from those sales in the province for the fiscal year, or

      • (ii) if the revenue to be equalized from those sales in the province for the fiscal year is less than that aggregate, that aggregate minus the lesser of

        • (A) the positive difference of that aggregate less that revenue, and

        • (B) any positive difference of

          • (I) the aggregate, over the preceding fiscal years beginning on or after April 1, 1987, of the amount by which the revenue to be equalized from those sales in the province for that fiscal year is greater than what the aggregate referred to in subparagraph (i) would be if it were, for each of those fiscal years, determined as if that subparagraph applied,

          less

          • (II) the aggregate, over all those preceding fiscal years, of the amount described in clause (A) or this clause, as the case may be, that is deducted under this subparagraph from the aggregate referred to in subparagraph (i);

    • (u) in the case of oil and gas revenues described in paragraph 7(1)(u), the sum of

      • (i) the total volume of the marketable production of oil, synthetic petroleum and condensate from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, and

      • (ii) the product of 0.968 and the total volume of the net production of gas from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada on the basis of its survey Oil and Gas Extraction;

    • (v) in the case of mining revenues described in paragraph 7(1)(v),

      • (i) if the difference that results from subtracting calculated net profits from revenue to be equalized from mining revenues in the province for the fiscal year is greater than zero, the revenue to be equalized from mining revenues in the province for the fiscal year, and

      • (ii) if the difference that results from subtracting calculated net profits from revenue to be equalized from mining revenues in the province for the fiscal year is less than or equal to zero, the calculated net profits in the province for the fiscal year less the aggregate, over the preceding fiscal years beginning with fiscal year 2004-2005, of the positive amounts that resulted from the subtraction referred to in subparagraph (i) and that have not been deducted under this subparagraph for previous fiscal years, but that result may not be less than the revenue to be equalized from mining revenues in the province for the fiscal year;

    • (w) in the case of water power rentals described in paragraph 7(1)(w),

      • (i) for a province other than Quebec, British Columbia or Newfoundland and Labrador, the number of megawatt hours of electricity generated in the province by electric utilities and industrial establishments from hydro sources in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 127-0007, Electric power generation, by class of electricity producer,

      • (ii) for Quebec or Newfoundland and Labrador, the product of the sum of the number of megawatt hours of electricity generated in both Quebec and Newfoundland and Labrador by electric utilities and industrial establishments from hydro sources in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 127-0007, Electric power generation, by class of electricity producer, and a fraction

        • (A) whose numerator is the product of the total revenue from the sale of electricity that is generated from all sources in the province by electric utilities and industrial establishments in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 127-0008, Supply and disposition of electric power, electric utilities and industry, and another fraction whose numerator is the number that would be determined for that province under subparagraph (i) if that subparagraph applied to the province and whose denominator is the number of megawatt hours of electricity generated from all sources in the province by electric utilities and industrial establishments in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 127-0008, Supply and disposition of electric power, electric utilities and industry, and

        • (B) whose denominator is the sum of the numerators described in clause (A) for Quebec and Newfoundland and Labrador, and

      • (iii) for British Columbia, the sum of

        • (A) the number of megawatt hours of electricity generated in the province by electric utilities and industrial establishments from hydro sources in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 127-0007, Electric power generation, by class of electricity producer, and

        • (B) the number of megawatt hours of electricity, in the calendar year that ends in the fiscal year, that constitutes the average annual usable hydroelectric energy portion of the downstream power benefits to which Canada is entitled in accordance with the Treaty Between the United States of America and Canada Relating to Cooperative Development of the Water Resources of the Columbia River Basin, and any protocols, amendments or addendums to that treaty, as provided by the British Columbia Hydro and Power Authority;

    • (x) in the case of insurance premium taxes described in paragraph 7(1)(x), the sum – as determined by the Minister based on information provided by the Office of the Superintendent of Financial Institutions and the provinces respecting the values referred to in subparagraph (i) and in clause (ii)(A) – for the province in the calendar year that ends in the fiscal year in relation to federally registered corporations and provincially licensed corporations, including a provincial government enterprise that carries on the business of insurance, of

      • (i) the amount by which the value of direct premiums written for property insurance is more than the value of direct premiums written for property marine insurance, and

      • (ii) the product of

        • (A) the amount by which the value of life, accident and sickness insurance premiums is more than the total value of dividends paid to policyholders under life insurance contracts, and

        • (B) a fraction

          • (I) whose numerator is the aggregate, over the 10 provinces, of the product of the provincial rate of the insurance premium tax that applies to life, accident and sickness insurance and another fraction whose numerator is the amount, for the province, referred to in clause (A) and whose denominator is the sum of those numerators for each of the 10 provinces, and

          • (II) whose denominator is the aggregate, over the 10 provinces, of the product of the provincial rate of the insurance premium tax that applies to property insurance and another fraction whose numerator is the amount, for the province, referred to in subparagraph (i) and whose denominator is the sum of those numerators for each of the 10 provinces;

    • (y) in the case of payroll taxes described in paragraph 7(1)(y), the amount determined by the formula

      {A × [(W1 × P1) + (W2 × P2) + (W3 × P3) + (W4 × P4)] / (W × P)}+ M

      where

      A
      is the total wages and salaries excluding supplementary labour income, as determined by Statistics Canada for the purpose of its System of Macroeconomic Accounts, paid in the province in the calendar year that ends in the fiscal year, other than the wages and salaries paid by
      • (i) the federal general government sector to employees in the defence industry, and

      • (ii) the provincial and territorial general government sector and the local general government sector to their employees,

      W
      is the aggregate revenue derived from payroll taxes by all provinces that levy those taxes for the fiscal year,
      W1, W2, W3 and W4
      are the revenues derived from payroll taxes for the fiscal year by
      • (i) Quebec, in the case of W1,

      • (ii) Newfoundland and Labrador, in the case of W2,

      • (iii) Ontario, in the case of W3, and

      • (iv) Manitoba, in the case of W4,

      P
      is the gross dollar value, before deductions, of the payrolls of all employers in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its Survey of Employment, Payrolls and Hours, other than the payrolls of
      • (i) employers not included in that survey, and

      • (ii) employers in the following industry classifications, as defined by the North American Industry Classification System:

        • (A) the elementary and secondary schools industry group,

        • (B) the hospitals subsector,

        • (C) the nursing and residential care facilities subsector,

        • (D) the provincial and territorial public administration subsector, and

        • (E) the local, municipal and regional public administration subsector,

      P1, P2, P3 and P4
      are equal to the amount determined for P minus an amount that is the aggregate of the payrolls of all employers in the province whose payrolls are below a threshold dollar amount and minus an amount that is the product of the threshold dollar amount and the number of employers whose payrolls are above the threshold dollar amount, with the threshold dollar amount being the statutory amount of an employer’s payroll that is exempt from provincial payroll tax as of June 1 of the fiscal year
      • (i) in Quebec, in the case of P1,

      • (ii) in Newfoundland and Labrador, in the case of P2,

      • (iii) in Ontario, in the case of P3, and

      • (iv) in Manitoba, in the case of P4, and

      M
      is military pay and allowances, excluding supplementary labour income, paid in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of Macroeconomic Accounts;
    • (z) in the case of provincial and local government property taxes, described in paragraph 7(1)(z), the weighted sum of four sub-bases, determined by the formula

      (B1 × 0.288) + (B2 × 0.406) + (B3 × 0.018) + (B4 × 0.288)

      where

      B1
      is the market value residential sub-base, determined by the formula

      {[(V × 1/V1) × Q] + [(P × 1/P1) × (1 - Q)]} × 1/R

      where

      V
      is the assessed market value of residential property in the province for the calendar year that ends in the fiscal year,
      V1
      is the aggregate, over all provinces, of the amounts determined for V,
      Q
      is 0.5 for British Columbia and 0.7 for all other provinces,
      P
      is the population of the province for the fiscal year, as determined in accordance with section 11,
      P1
      is the aggregate, over all provinces, of the amounts determined for P, and
      R
      is the aggregate, over all provinces, of the amount determined for each province by the formula

      [(V × 1/V1) × Q] + [(P × 1/P1) × (1 - Q)]

      where

      V, V1, Q, P and P1
      are the amounts determined for V, V1, Q, P and P1, respectively, in the formula for B1,
      B2
      is the commercial-industrial sub-base as determined by the formula

      {[(F + G) × H] + I } × 1/ N2

      where

      F
      is the difference between the aggregate current dollar gross domestic product at factor cost in the province for the calendar year that ends in the preceding fiscal year and the current dollar gross domestic product at factor cost attributable to the crop production industry, the greenhouse, nursery and floriculture production industry, the animal production industry, the government sector elementary and secondary schools industry, the universities industry, the government sector community colleges and C.E.G.E.P.s industry, the government sector other educational services industry, the hospitals industry, the government sector nursing and residential care facilities industry, the other provincial and territorial government services industry, the other municipal government services industry and the other Aboriginal government services industry, in the province for the same calendar year, as determined by Statistics Canada on the basis of data from its Provincial Supply and Use Tables,
      G
      is the product of
      • (i) the population of the province for the preceding fiscal year multiplied by

        • (A) 1.694990, in the case of Ontario,

        • (B) 1.726083, in the case of Quebec,

        • (C) 0.704058, in the case of Nova Scotia,

        • (D) 0.533864, in the case of New Brunswick,

        • (E) 0.943687, in the case of Manitoba,

        • (F) 1.800304, in the case of British Columbia,

        • (G) 0.490192, in the case of Prince Edward Island,

        • (H) 0.698474, in the case of Saskatchewan,

        • (I) 1.015645, in the case of Alberta, and

        • (J) 0.623713, in the case of Newfoundland and Labrador, and

      • (ii) a fraction whose numerator is the aggregate, over all provinces, of one third of the amounts determined for F and whose denominator is the aggregate, over all provinces, of the values determined under subparagraph (i),

      H
      is a fraction whose numerator is the aggregate, over all provinces, of the values determined for I multiplied by the fraction 20.945/79.055 and whose denominator is the aggregate, over all provinces, of the amounts determined for F and G,
      I
      is the value, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series, of the portion of the non-residential net capital stock in the province that consists of building construction in all industry categories, other than the crop production subsector, the animal production and aquaculture subsector, the local, municipal and regional public administration subsector, the provincial and territorial public administration subsector, the educational services subsector, the hospitals subsector, the nursing and residential care facilities subsector, the religious, grant-making, civic, and professional and similar organizations subsector, and
      N2
      is the aggregate, over all provinces, of the amount determined for each province by the formula

      [(F + G) × H] + I

      where

      F, G, H and I
      are the amounts determined for F, G, H and I, respectively, in the formula for B2,
      B3
      is the farm sub-base as determined by the formula

      [(K × L) +M] × 1/N3

      where

      K
      is the value of farm land in the province, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 002-0020, Balance sheet of the agricultural sector, at December 31, and ratios,
      L
      is a fraction whose numerator is the aggregate, over all provinces, of the amounts determined for M multiplied by the fraction 84.078/15.922 and whose denominator is the aggregate, over all provinces, of the amounts determined for K,
      M
      is the value of farm net capital stock in the province that consists of building construction in the crop production subsector and the animal production and aquaculture subsector, measured in current dollars as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series, and
      N3
      is the aggregate, over all provinces, of the amount determined for each province by the formula

      (K × L) +M

      where

      K, L and M
      are the amounts determined for K, L and M, respectively, in the formula for B3, and
      B4
      is the multi-concept residential sub-base as determined by the formula

      {[(A + B + C) × D] + E} × 1/N4

      where

      A
      is the value of household disposable income for the calendar year that ends in the preceding fiscal year, less provincial and local indirect taxes for that year, other than provincial and local property taxes, non-profit taxes on corporations, motor vehicle licence and permit fees paid by businesses, miscellaneous taxes on natural resources and provincial and local taxes on the sale price and value of real or immovable property on its transfer in each province, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts,
      B
      is the product of
      • (i) the population of the province for the preceding fiscal year multiplied by

        • (A) 1.694990, in the case of Ontario,

        • (B) 1.449733, in the case of Quebec,

        • (C) 0.704058, in the case of Nova Scotia,

        • (D) 0.533864, in the case of New Brunswick,

        • (E) 0.943687, in the case of Manitoba,

        • (F) 1.800304, in the case of British Columbia,

        • (G) 0.490192, in the case of Prince Edward Island,

        • (H) 0.698474, in the case of Saskatchewan,

        • (I) 1.015645, in the case of Alberta, and

        • (J) 0.623713, in the case of Newfoundland and Labrador, and

      • (ii) a fraction whose numerator is the aggregate, over all provinces, of the amounts determined for A and whose denominator is the aggregate, over all provinces, of the values determined under subparagraph (i),

      C
      is the product of
      • (i) the population of the province, including the estimated number of non-permanent residents, for the preceding fiscal year, less the population of the province, including the estimated number of non-permanent residents, for the fiscal year that was five years before that preceding fiscal year, and

      • (ii) a fraction whose numerator is the aggregate, over all provinces, of the amounts determined for A and whose denominator is the aggregate, over all provinces, of the values determined under subparagraph (i),

      D
      is a fraction whose numerator is the aggregate, over all provinces, of the amounts determined for E multiplied by 0.6056 and whose denominator is the aggregate, over all provinces, of the amounts determined for A, B and C,
      E
      is the residential net capital stock in the province, measured in current dollars, as of the end of the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada for the purpose of its Fixed Capital Flows and Stocks data series, and
      N4
      is the aggregate, over all provinces, of the amount determined for each province by the formula

      [(A + B + C) × D] + E

      where

      A, B, C, D and E
      are the amounts determined for A, B, C, D and E, respectively, in the formula for B4;
    • (z.1) in the case of race track taxes described in paragraph 7(1)(z.1), the gross amount wagered in the province in the calendar year that ends in the fiscal year at pari-mutuel tracks on harness and running horse races, as determined by the Canadian Pari-Mutuel Agency;

    • (z.2) in the case of revenues from lottery ticket sales, described in paragraph 7(1)(z.2), the product of 1,000,000 and the sum of

      • (i) the product of the net revenue after prize payouts from the sale of lottery tickets in the province for the fiscal year and a fraction whose numerator is 0.8 and whose denominator is the aggregate, over the 10 provinces, of that net revenue,

      • (ii) the product of household disposable income in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts, and a fraction whose numerator is 0.1 and whose denominator is the aggregate, over all provinces, of that household disposable income, and

      • (iii) the product of the population of the province for the fiscal year and a fraction whose numerator is 0.1 and whose denominator is the population of all 10 provinces for that fiscal year;

    • (z.3) in the case of revenues described in paragraph 7(1)(z.3), the product of 1,000,000 and the sum of

      • (i) the product of the net revenue after prize payouts from the sale of games of chance, other than net revenue from the sale of lottery tickets and from race track wagers, in the province for the fiscal year, and a fraction whose numerator is 0.2 and whose denominator is the aggregate, over the 10 provinces, of that net revenue,

      • (ii) the product of household disposable income in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts, and a fraction whose numerator is 0.4 and whose denominator is the aggregate, over all provinces, of that household disposable income, and

      • (iii) the product of the population of the province for the fiscal year and a fraction whose numerator is 0.4 and whose denominator is the population of all 10 provinces for that fiscal year;

    • (z.4) in the case of miscellaneous provincial taxes and revenues, provincial revenues from sales of goods and services, local government revenues from sales of goods and services, and miscellaneous local government taxes and revenues, described in paragraph 7(1)(z.4), the aggregate, over the revenue sources set out in paragraphs (a) to (k) and (x) to (z.3) of the definition revenue source in subsection 3.9(1) of the Act and the part of the revenue source set out in paragraph (z.5) of that definition that is not related to natural resources, of the products of

      • (i) the revenue base for each of those revenue sources for the province for the fiscal year, and

      • (ii) a fraction whose numerator is the aggregate, over all provinces, of the revenues derived from that revenue source and whose denominator is the aggregate, over all provinces, of the revenue base for that revenue source; and

    • (z.5) in the case of revenues that are shared by the Government of Canada with the provinces derived from the revenue sources described in paragraph 7(1)(z.5)(i), (ii) and (iii), respectively,

  • (2) For the purposes of paragraphs (1)(e) and (t), if a province has changed its method of accounting for a fiscal year so that the revenues referred to in those paragraphs are derived during a period that is other than 12 months, the Minister may adjust the amount of those revenues for that fiscal year to offset any effect of that change.

  • (3) For the purposes of paragraphs (1)(m) to (o), (q) and (r), the adjustment factor for oil is the amount determined by the following formula, which is equal to zero if the expression “(A + X)” is equal to zero:

    [(A × C) /B + (X × Z) /Y] × [(B + Y) / (C + Z) × 1 / (A + X)]

    where

    A
    is the value of oil, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the province;
    B
    is the value of oil, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the provinces;
    C
    is the revenue from oil, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is vested in Her Majesty in right of the provinces;
    X
    is the value of oil, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the province;
    Y
    is the value of oil, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the provinces; and
    Z
    is the revenue from oil, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is not vested in Her Majesty in right of the provinces.
  • (4) The following definitions apply in subsection (3).

    revenue from oil

    revenue from oil means the revenues referred to in paragraphs 7(1)(m) to (o), (q) and (r). (revenus tirés du pétrole)

    value of oil

    value of oil means the value of the marketable production of crude oil from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du pétrole)

  • (5) For the purpose of paragraph (1)(s), the adjustment factor for natural gas is the amount determined by the following formula, which is equal to zero if the expression “(A + X)” is equal to zero:

    [(A × C) / B + (X × Z) /Y] × [(B + Y) / (C + Z) × 1 / (A + X)]

    where

    A
    is the value of natural gas, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the province;
    B
    is the value of natural gas, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the provinces;
    C
    is the revenue from natural gas, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is vested in Her Majesty in right of the provinces;
    X
    is the value of natural gas, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the province;
    Y
    is the value of natural gas, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the provinces; and
    Z
    is the revenue from natural gas, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is not vested in Her Majesty in right of the provinces.
  • (6) The following definitions apply in subsection (5).

    revenue from natural gas

    revenue from natural gas means the revenues referred to in paragraph 7(1)(s). (revenus tirés du gaz naturel)

    value of natural gas

    value of natural gas means the value of the marketable production of gas and gas by-products from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du gaz naturel)

  • (7) For the purpose of paragraph (1)(x), moneys received by a provincial government enterprise from the provincial government consolidated revenue fund, or its equivalent, or from a specific tax, are deemed to be premiums of that enterprise.

  • SOR/2008-318, s. 8
  • SOR/2013-225, s. 10
  • 2014, c. 13, s. 117
  • SOR/2018-131, ss. 9, 20 to 22
 

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