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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 3General (continued)

Payments (continued)

 [Repealed, SOR/2013-225, s. 14]

 [Repealed, SOR/2013-225, s. 14]

 [Repealed, SOR/2013-225, s. 14]

Recovery of Overpayments

 For the purpose of paragraph 3.93(a) of the Act, if the Minister determines that the Minister has overpaid an amount payable to a province under Part 1 of the Act, the overpayment may be recovered from that province, subject to section 41

  • (a) in the fiscal year for which the payment is made from any amount payable under the Act to that province; or

  • (b) on the request of the province, in the following fiscal year from any amount payable under the Act to that province.

  • SOR/2008-318, s. 12

Advances on Account of Payments under Section 3.71 of the Act

 [Repealed, SOR/2013-225, s. 15]

 In sections 16.7 and 16.8, period has the same meaning as in subsection 3.71(2) of the Act.

  • SOR/2008-318, s. 12
  • SOR/2013-225, s. 15
  •  (1) If the amount related to an advance — calculated under section 16.8 — on account of an additional fiscal equalization payment that may be paid to Nova Scotia under section 3.71 of the Act for each fiscal year in the period is

    • (a) greater than the aggregate of all previous advances made on account of that payment less the aggregate of all amounts of those previous advances that are required to be set off against other payments to the province, the Minister shall make an advance to the province in the amount of the difference before the end of the fiscal year; or

    • (b) less than the aggregate of all previous advances paid for the previous fiscal years less any set-offs or recoveries for the previous fiscal years, the Minister shall set-off or recover the difference, before the end of the following fiscal year, from any payment to the province under the Act.

  • (2) The Minister shall calculate the advances, set-offs and recoveries for a province for a fiscal year between March 1 and March 14 of the fiscal year.

  • SOR/2008-318, s. 12
  • SOR/2013-225, s. 16

 The amount related to an advance on account of an additional fiscal equalization payment that may be paid to Nova Scotia under section 3.71 of the Act for each fiscal year in the period shall be the amount that is the greater of zero and the amount calculated in accordance with the following formula:

(A + B) - (C + D)

where

A
is the aggregate of the fiscal equalization amounts calculated under section 3.72 of the Act for the province for each fiscal year in the period up to and including the fiscal year for which the advance is calculated;
B
is the aggregate of the additional fiscal equalization offset payments and transitional payments that would be paid to the province, for each fiscal year in the period up to and including the fiscal year for which the advance is calculated, under the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act if those payments were calculated
  • (i) in accordance with that Act as it read on April 1, 2007, and

  • (ii) as if the fiscal equalization payment for the province, for each of those fiscal years, were equal to the fiscal equalization amount calculated under section 3.72 of the Act;

C
is the aggregate of the fiscal equalization payments that may be paid to the province under sections 3.2 and 3.4 of the Act for each fiscal year in the period up to and including the fiscal year for which the advance is calculated; and
D
is the aggregate of the additional fiscal equalization offset payments and transitional payments that are paid to the province under the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act for each fiscal year in the period up to and including the fiscal year for which the advance is calculated.
  • SOR/2008-318, s. 12
  • SOR/2013-225, s. 17

PART 1.1Territorial Formula Financing Payments

Interpretation

 The following definitions apply in this Part.

adjusted number of litres of diesel fuel taxed at road-use rate in the territory

adjusted number of litres of diesel fuel taxed at road-use rate in the territory[Repealed, SOR/2013-225, s. 18]

adjusted number of litres of gasoline taxed at road-use rate in the territory

adjusted number of litres of gasoline taxed at road-use rate in the territory[Repealed, SOR/2013-225, s. 18]

allocated corporation taxable income

allocated corporation taxable income means, in relation to a province or territory for a fiscal year, the amount, calculated in respect of corporations — other than non-resident-owned investment corporations, as defined in subsection 133(8) of the Income Tax Act, and corporations that are prescribed federal Crown corporations for the purpose of section 27 of that Act and are agents of Her Majesty — on the basis of assessments or reassessments completed by the Canada Revenue Agency no later than December 31 of the calendar year that ends in the following fiscal year, determined by the formula

A + (D × W)

where

A
is the amount determined by the formula

B - C

where

B
is the sum of the corporations’ taxable income earned in the province or territory within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are not eligible for a deduction under subsection 125(1) of the Income Tax Act, and
C
is the aggregate, over all assessments and reassessments completed in respect of investment corporations or mutual fund corporations, of the amounts determined by the formula

G/H

where

G
is the capital gains refund payable to the corporation under the Income Tax Act that constitutes income earned in the province or territory within the meaning of Part IV of the Income Tax Regulations for the corporation’s taxation year ending in the calendar year that ends in the fiscal year or for any earlier taxation year for which the refund was not taken into account in this calculation in relation to a previous fiscal year, and
H
is the percentage referred to in paragraph (a) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) of the Income Tax Act that applies to the taxation year for which the capital gains refund is payable;
D
is the sum of the corporations’ taxable income earned in the province or territory within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are eligible for a deduction under subsection 125(1) of the Income Tax Act; and
W
is the amount determined by the formula

E/F

where

E
is the aggregate, over all provinces and territories, of the amounts determined by the formula

I × (D/J)

where

I
is the small business tax rate under each province or territory’s income tax legislation that applies, as a result of the application of the provincial or territorial small business deduction, to income in respect of which the corporation is eligible for that deduction in the calendar year that ends in the fiscal year,
D
is the amount determined for D in the first formula in this definition, and
J
is the aggregate, over all provinces and territories, of the amounts determined for D, and
F
is the aggregate, over all provinces and territories, of the amounts determined by the formula

K × (A/L)

where

K
is each province or territory’s general corporate income tax rate for the calendar year that ends in the fiscal year,
A
has the same meaning as set out above, and
L
is the aggregate, over all provinces and territories, of the amounts determined for A for all the provinces and territories. (revenu imposable réparti des personnes morales)
allocated corporation taxable income attributable to the territory for the fiscal year

allocated corporation taxable income attributable to the territory for the fiscal year[Repealed, SOR/2013-225, s. 18]

assessed market value of commercial-industrial property

assessed market value of commercial-industrial property[Repealed, SOR/2023-230, s. 10]

average tax rate

average tax rate means

  • (a) for the purpose of subparagraph 19(1)(d)(i), the aggregate, over all provinces and territories, of the provincial or territorial rate of gasoline tax applicable to road-use gasoline sold in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction whose numerator is the adjusted number of litres of gasoline taxed at road-use rate in that province or territory during that calendar year and whose denominator is the aggregate, over all provinces and territories, of those numerators;

  • (b) for the purpose of subparagraph 19(1)(d)(ii), the aggregate, over all provinces and territories, of the provincial or territorial tax rate applicable to aviation fuel sold in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction whose numerator is the number of litres of aviation fuel sold in that province or territory during that calendar year, as determined by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold — or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information — and whose denominator is the aggregate, over all provinces and territories, of those numerators;

  • (c) for the purpose of subparagraph 19(1)(d)(iii), the aggregate, over all provinces and territories, of the provincial or territorial tax rate applicable to gasoline sold for use by farm trucks in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction whose numerator is the number of litres of gasoline sold for use by farm trucks in that province or territory during that calendar year and whose denominator is the aggregate, over all provinces and territories, of those numerators;

  • (d) for the purpose of subparagraph 19(1)(e)(i), the aggregate, over all provinces and territories, of the provincial or territorial rate of diesel tax applicable to road-use diesel fuel sold in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction whose numerator is the adjusted number of litres of diesel fuel taxed at road-use rate in that province or territory during that calendar year and whose denominator is the aggregate, over all provinces and territories, of those numerators;

  • (e) for the purpose of subparagraph 19(1)(e)(ii), the aggregate, over all provinces and territories, of the provincial or territorial tax rate applicable to railway fuel sold in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction

    • (i) whose numerator is,

      • (A) in the case of a province or territory in which railway fuel is not taxed throughout the calendar year or for which data is not available, the number of litres of railway fuel sold in that province or territory during that calendar year, as determined by the Minister on the basis of any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada, and

      • (B) in any other case, the number of litres of railway fuel sold in that province or territory during that calendar year, as determined by Statistics Canada on the basis of data from its survey Gasoline and Other Petroleum Fuels Sold, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information, and

    • (ii) whose denominator is the aggregate, over all provinces and territories, of those numerators; and

  • (f) for the purpose of subparagraph 19(1)(e)(iii), the aggregate, over all provinces and territories, of the provincial or territorial tax rate applicable to diesel fuel sold for use by farm trucks in each province or territory during the calendar year that ends in the fiscal year, multiplied by a fraction whose numerator is the number of litres of diesel fuel used by farm trucks in that province or territory during that calendar year and whose denominator is the aggregate, over all provinces and territories, of those numerators. (taux moyen de taxe)

business sector industry

business sector industry means any of the business sector industries as defined by Statistics Canada

  • (a) with respect to capital expenditures, for the purpose of its Provincial and Territorial Supply and Use Tables’ detailed level final demand matrix; and

  • (b) with respect to intermediate input expenditures, for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level intermediate input matrix. (industrie du secteur des entreprises)

capital expenditures

capital expenditures means expenditures on commodities, as determined by Statistics Canada for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level final demand matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe)

capital expenditures for intellectual property products

capital expenditures for intellectual property products means the gross fixed capital formation in intellectual property products as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any own-account expenditures and any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les produits de propriété intellectuelle)

capital expenditures for machinery and equipment

capital expenditures for machinery and equipment means the gross fixed capital formation in machinery and equipment as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour machines et matériel)

capital expenditures for non-residential structures

capital expenditures for non-residential structures means the gross fixed capital formation in non-residential structures as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)

certificate

certificate means the certificate referred to in section 28. (certificat)

commodity

commodity means any of the commodities as defined by Statistics Canada for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level final demand matrix. (produit de base)

federal income tax payable

federal income tax payable means, in relation to an individual – including a mutual fund trust – in a territory for a taxation year, the amount of “tax otherwise payable under this Part”, as defined in subsection 120(4) of the Income Tax Act, as determined by the Canada Revenue Agency in the following taxation year

  • (a) including additional amounts assessed for previous taxation years that were not included in the earlier amounts assessed for those years;

  • (b) including additional amounts assessed for subsequent taxation years that will not be included in the amounts assessed for those years;

  • (c) excluding any amount related to refunds of federal capital gain taxes on a mutual fund trust assessed on or after December 31, 2002 for the fiscal year beginning on April 1, 2001; and

  • (d) in the case of Yukon, excluding any remittance received in respect of that year by any specified Yukon aboriginal government under a personal income tax room sharing agreement between that government and the Government of Canada. (impôt fédéral sur le revenu à payer)

household final consumption expenditures

household final consumption expenditures means,

  • (a) in the case of expenditures relating to property insurance, accident and sickness insurance, auto insurance or life insurance, the gross premiums paid by insured individuals for that insurance, net of any taxes on products, as determined by Statistics Canada;

  • (b) in the case of expenditures relating to used vehicles, the amount paid by individuals for those vehicles, net of any taxes on products, as determined by Statistics Canada; and

  • (c) in the case of any other expenditures, household final consumption expenditures as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts, net of any taxes on products, as determined by Statistics Canada. (dépenses de consommation finale des ménages)

housing expenditure category

housing expenditure category means any of the following expenditure categories used by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts:

  • (a) expenditures, as determined by Statistics Canada, for residential housing, including the land, for

    • (i) new singles,

    • (ii) new doubles,

    • (iii) new rows,

    • (iv) new apartments,

    • (v) conversions,

    • (vi) cottages, and

    • (vii) mobile homes and other movable dwellings;

  • (b) expenditures for residential renovation; and

  • (c) expenditures for residential housing transfer. (catégorie de dépenses de logement)

housing expenditures

housing expenditures means expenditures, net of any taxes on products as determined by Statistics Canada, on

  • (a) residential housing, including the land, as determined by Statistics Canada for

    • (i) new singles,

    • (ii) new doubles,

    • (iii) new rows,

    • (iv) new apartments,

    • (v) conversions,

    • (vi) cottages, and

    • (vii) mobile homes and other movable dwellings;

  • (b) residential renovations as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts; and

  • (c) residential housing transfers as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts. (dépenses de logement)

intermediate input

intermediate input means any of the intermediate inputs as defined by Statistics Canada for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level intermediate input matrix. (intrant intermédiaire)

intermediate input commodity

intermediate input commodity[Repealed, SOR/2018-131, s. 13]

intermediate input expenditures

intermediate input expenditures means expenditures on intermediate inputs, as determined by Statistics Canada for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level intermediate input matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)

net provincial and territorial sales tax revenues

net provincial and territorial sales tax revenues means revenues described in subparagraphs 18(1)(i)(i) and (ii), net of any provincial or territorial sales tax rebates. (recettes de taxe de vente provinciale et territoriale nettes)

non-business sector industry

non-business sector industry[Repealed, SOR/2018-131, s. 13]

number of litres of diesel fuel sold for use by farm trucks

number of litres of diesel fuel sold for use by farm trucks means, in respect of a province or territory, 100 times the number of cubic metres of diesel fuel used in the agriculture industry in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres de carburant diesel vendus pour consommation par des camions de ferme)

number of litres of diesel fuel sold for use by farm trucks in the territory

number of litres of diesel fuel sold for use by farm trucks in the territory[Repealed, SOR/2013-225, s. 18]

number of litres of gasoline sold for use by farm trucks

number of litres of gasoline sold for use by farm trucks means, in respect of a province or territory, 550 times the number of cubic metres of gasoline used in the agriculture industry in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres d’essence vendus pour consommation par des camions de ferme)

number of litres of gasoline sold for use by farm trucks in the territory

number of litres of gasoline sold for use by farm trucks in the territory[Repealed, SOR/2013-225, s. 18]

payroll tax system

payroll tax system means the set of rules relating to the imposition, by a province or territory, of tax on the payroll of employers. (régime d’impôt sur la masse salariale)

post-secondary educational services

post-secondary educational services means universities, colleges and C.E.G.E.P.s as defined by Statistics Canada for the purpose of its Provincial and Territorial Supply and Use Tables’ detailed level intermediate input matrix. (services d’enseignement postsecondaire)

post-secondary education or non-profit industry

post-secondary education or non-profit industry means either of the following industries as defined by Statistics Canada:

  • (a) for the purpose of its Provincial and Territorial Supply and Use Tables’ detailed level intermediate input matrix, with respect to the post-secondary educational services industry; or

  • (b) for the purpose of its Provincial and Territorial Supply and Use Tables’ summary level intermediate input matrix, with respect to the non-profit institutions serving households industry. (industrie de l’éducation postsecondaire ou à but non lucratif)

public education or non-profit entity category

public education or non-profit entity category means either of the following categories used by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts:

  • (a) government education services; or

  • (b) non-profit organizations. (catégorie des services gouvernementaux d’enseignement ou des organismes à but non lucratif)

simulated federal income tax

simulated federal income tax[Repealed, SOR/2013-225, s. 18]

specified Yukon aboriginal government

specified Yukon aboriginal government means

  • (a) the Champagne and Aishihik First Nations;

  • (b) the Little Salmon/Carmacks First Nation;

  • (c) the First Nation of Nacho Nyak Dun;

  • (d) the Selkirk First Nation;

  • (e) the Ta’an Kwach’an Council;

  • (f) the Teslin Tlingit Council;

  • (g) the Tr’ondëk Hwëch’in;

  • (h) the Vuntut Gwitchin First Nation;

  • (i) the Kluane First Nation;

  • (j) the Kwanlin Dun First Nation; and

  • (k) the Carcross/Tagish First Nation. (gouvernement autochtone spécifique du Yukon)

 

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