Federal-Provincial Fiscal Arrangements Act
An Act to provide for the making of certain fiscal contributions to provinces
Bills that amended this Act0
No published amendment links yet for this Act.
Sections1,125
- 1Short title
This Act may be cited as the Federal-Provincial Fiscal Arrangements Act.
- 2Definitions
- 2(1)
In this Act,
- 2(1)[p3]
aboriginal government means an Indian, an Inuit or a Métis government or the council of the band, as defined in subsection 2(1) of the Indian Act; (gouvernement autochtone)
- 2(1)[p4]
administration agreement means
- 2(1)[p4](a)
an agreement between the Government of Canada and the government of a province or an aboriginal government under which
- 2(1)[p4](a)(i)
the Government of Canada will administer and enforce an Act of the legislature of the province, or legislation made by an aboriginal government, that imposes a tax and will make payments to the province or the aboriginal government in respect of the taxes collected, in accordance with the terms and conditions of the agreement, or
- 2(1)[p4](a)(ii)
the government of the province will administer and enforce an Act of Parliament that imposes a tax and will make payments to the Government of Canada in respect of the taxes collected, in accordance with the terms and conditions of the agreement, or
- 2(1)[p4](b)
an agreement between the Government of Canada and the government of a province under which the government of the province will administer and enforce a First Nation law that imposes a tax and will make payments to the Government of Canada in respect of the taxes collected, in accordance with the terms and conditions of the agreement; (accord d’application)
- 2(1)[p9]
coordinated cannabis taxation agreement means an agreement or arrangement entered into by the Minister on behalf of the Government of Canada under Part III.2, including any amendments or variations to the agreement or arrangement made in accordance with that Part; (accord de coordination de la taxation du cannabis)
- 2(1)[p10]
coordinated vaping product taxation agreement means an agreement or arrangement entered into by the Minister on behalf of the Government of Canada under Part III.3, including any amendments or variations to the agreement or arrangement made in accordance with that Part; (accord de coordination de la taxation des produits de vapotage)
- 2(1)[p11]
First Nation law has the meaning assigned by subsection 11(1), 12(1), 39(1) or 40(1) of the First Nations Goods and Services Tax Act; (texte législatif autochtone)
- 2(1)[p12]
fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year; (exercice)
- 2(1)[p13]
former Act means the Federal-Provincial Fiscal Arrangements Act, 1972, chapter 8 of the Statutes of Canada, 1972; (ancienne loi)
- 2(1)[p14]
Minister, other than in sections 25 to 25.5, means the Minister of Finance; (ministre)
- 2(1)[p15]
prescribed means prescribed by regulations made by the Governor in Council pursuant to section 40; (prescrit)
- 2(1)[p16]
sales tax harmonization agreement means an agreement or arrangement entered into by the Minister on behalf of the Government of Canada and authorized, or ratified and confirmed, under Part III.1 including any amendments or variations to the agreement or arrangement that are authorized, or ratified and confirmed, under that Part; (accord d’harmonisation de la taxe de vente)
- 2(1)[p17]
tax collection agreement means an agreement between the Government of Canada and the government of a province pursuant to which the Government of Canada will collect, on behalf of the province, taxes that the province imposes on the incomes of individuals or corporations, or both, and will make payments to the province in respect of the taxes so collected in accordance with the terms and conditions of the agreement. (accord de perception fiscale)
- 2(2)Definition of province
In Parts I, I.1 and II, province does not include Yukon, the Northwest Territories or Nunavut.
- 2(3)Determination of population
For the purposes of this Act, the population of a province, or, before April 1, 1999, of the part of the Northwest Territories that became Nunavut or the part that remained as the Northwest Territories, for a fiscal year is the population of the province or the part for that fiscal year as determined by the Chief Statistician of Canada in the prescribed manner.
- 2(3.1)Determination of gross domestic product
For the purposes of this Act, the gross domestic product of Canada for a calendar year is the gross domestic product of Canada for the year as determined by the Chief Statistician of Canada in prescribed manner.
- 2(4)References to “Act”
In the definition administration agreement in subsection (1) and in Part III, a reference to an Act shall be read as a reference to an Act or a part thereof.
- 3Fiscal equalization payment
Subject to the other provisions of this Act, there may be paid to a province a fiscal equalization payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2029.
- 3.1Repealed
[Repealed, 2013, c. 33, s. 110]
- 3.11Repealed
[Repealed, 2013, c. 33, s. 110]
- 3.12Additional fiscal equalization payment
- 3.12(1)
An additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2010 equal to,
- 3.12(1)(a)
for Nova Scotia, $250,405,000;
- 3.12(1)(b)
for New Brunswick, $80,300,000;
- 3.12(1)(c)
for Manitoba, $175,494,000; and
- 3.12(1)(d)
for Prince Edward Island, $3,304,000.
- 3.12(2)Additional fiscal equalization payment — 2011-2012 fiscal year
An additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2011 equal to,
- 3.12(2)(a)
for Quebec, $368,932,000;
- 3.12(2)(b)
for Nova Scotia, $157,591,000;
- 3.12(2)(c)
for New Brunswick, $149,776,000; and
- 3.12(2)(d)
for Manitoba, $275,808,000.
- 3.12(3)Additional fiscal equalization payment — 2012-2013 fiscal year
An additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2012 equal to,
- 3.12(3)(a)
for Quebec, $362,127,000;
- 3.12(3)(b)
for Nova Scotia, $13,471,000;
- 3.12(3)(c)
for New Brunswick, $102,767,000; and
- 3.12(3)(d)
for Manitoba, $201,295,000.
- 3.12(4)Additional fiscal equalization payment — 2013-2014 fiscal year
An additional fiscal equalization payment may be paid for the fiscal year beginning on April 1, 2013 equal to,
- 3.12(4)(a)
for New Brunswick, $48,891,000; and
- 3.12(4)(b)
for Manitoba, $6,915,000.
- 3.2General rule
- 3.2(1)
Subject to the other provisions of this Part, the fiscal equalization payment that may be paid to a province for a fiscal year is the amount, as determined by the Minister, equal to the greater of
- 3.2(1)(a)
the amount determined by the formula is the aggregate of the amounts obtained by subtracting, for each revenue source except the one referred to in paragraph (e) of the definition revenue source in subsection 3.5(1), the average annual per capita yield in that province for the revenue source for that fiscal year from the average annual per capita national yield for the revenue source for that fiscal year, is 50% of the amount obtained by subtracting, for the revenue source referred to in paragraph (e) of the definition revenue source in subsection 3.5(1), the average annual per capita revenue to be equalized for that province for that fiscal year from the average annual per capita national revenue to be equalized for that fiscal year, and is the average annual population of that province for that fiscal year, and
- 3.2(1)(b)
the amount determined by the formula have the same meaning as in paragraph (a).
- 3.2(2)Province may elect otherwise
Despite subsection (1), a province may elect, at the prescribed time and in the prescribed manner, that the fiscal equalization payment that may be paid to that province for a fiscal year be equal to the amount determined by the formula set out in paragraph (1)(a).
- 3.2(3)Negative amount
For the purposes of this Part, if the amount of a fiscal equalization payment computed in accordance with subsection (1) or (2) is negative, that amount is considered to be zero.
- 3.2(4)Repealed
[Repealed, 2013, c. 33, s. 112]
- 3.3Repealed
[Repealed, 2013, c. 33, s. 113]
- 3.4Less than 50% of population
- 3.4(1)
If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is less than 50% of the aggregate of the average annual population of all provinces for that fiscal year and if the amount that may be paid to a province for that fiscal year under section 3.2 would, if paid, result in that province having, in that fiscal year, a total per capita fiscal capacity that is greater than the per capita equalized fiscal capacity of any province that would not receive a fiscal equalization payment for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a), the fiscal equalization payment that may be paid to that province for that fiscal year determined under section 3.2 shall be reduced by the amoun…
- 3.4(2)50% or more of population
If the aggregate of the average annual population of all provinces for a fiscal year to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), is 50% or more of the aggregate of the average annual population of all provinces for that fiscal year, the fiscal equalization payment that may be paid to a province for that fiscal year determined under section 3.2 shall be reduced by the greater of the following amounts:
- 3.4(2)(a)
zero, and
- 3.4(2)(b)
the amount determined by the formula is the total per capita fiscal capacity of that province for that fiscal year, is the quotient obtained by dividing the aggregate of the equalized fiscal capacity of all provinces to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under paragraph 3.2(1)(a), by the aggregate of the average annual population of all of those provinces for that fiscal year, and is the average annual population of that province for that fiscal year.
- 3.4(3)Re-calculation
If, as a result of the application of subsection (2), the amount of the fiscal equalization payment that may be paid to any province for a fiscal year is reduced to zero, that subsection applies again, but the description of B in that subsection does not include, for that fiscal year, the equalized fiscal capacity and the average annual population of any province to which the amount of the fiscal equalization payment is reduced to zero.
- 3.4(4)Multiple applications
For greater certainty, subsection (3) applies after each application of subsection (2).
- 3.4(5)Aggregate payment
The aggregate of the fiscal equalization payments that would be paid for a fiscal year beginning after March 31, 2010, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), shall be equal to the amount determined by the formula is, for the fiscal year beginning on April 1, 2010, $14,185,000,000 and, for a fiscal year beginning after March 31, 2011, the amount determined under this subsection for the previous fiscal year; and is the average of the annual rates of growth of the nominal gross domestic product of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years.
- 3.4(6)Calculation
If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), exceeds the amount determined under subsection (5), the fiscal equalization payment that may be paid to a province for that fiscal year determined under subsections (1) to (4) and section 3.2 shall be reduced by the amount determined by the formula is the lesser of the per capita equalization payment for that province for that fiscal year and the per capita reduction; and is the average annual population of that province for that fiscal year.
- 3.4(7)Per capita calculation
For the purposes of subsection (6), the Minister shall determine the per capita reduction for a fiscal year and shall, in making that determination, ensure that the aggregate of the reductions referred to in that subsection is equal to the amount determined by the formula is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2); and is the amount determined under subsection (5).
- 3.4(8)Adjustment payment
If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), is less than the amount determined under subsection (5), there may be paid to a province for that fiscal year an adjustment payment that is,
- 3.4(8)(a)
in the case of a province to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under subsections (1) to (4) and section 3.2, the amount determined by the formula is the per capita adjustment for that fiscal year, and is the average annual population of that province for that fiscal year; and
- 3.4(8)(b)
in any other case, the greater of zero and the amount determined by the formula is the per capita pre-adjustment equalized fiscal capacity for that fiscal year of the province that has the greatest per capita pre-adjustment equalized fiscal capacity for that fiscal year of the provinces referred to in paragraph (a), is the per capita adjustment for that fiscal year, is the per capita pre-adjustment equalized fiscal capacity of the province in question for that fiscal year, and is the average annual population of the province in question for that fiscal year.
- 3.4(9)Per capita adjustment
For the purposes of subsection (8), the Minister shall determine the per capita adjustment for a fiscal year and shall, in making that determination, ensure that the aggregate of the adjustment payments referred to in that subsection is equal to the amount determined by the formula is the amount determined under subsection (5); and is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2).
- 3.4(10)Repealed
[Repealed, 2013, c. 33, s. 114]
- 3.5Interpretation
- 3.5(1)
The following definitions apply in this section and in sections 3 to 3.4.
- 3.5(1)[p68]
- 3.5(1)[p69]
average annual per capita national revenue to be equalized means, for a fiscal year for a revenue source, the amount determined by the formula is the national revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year; is the national revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year; is the national revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and is the aggregate of the average annual population of all provinces for that fiscal year. (revenu national annuel moyen sujet à péréquation par habitant)
- 3.5(1)[p70]
average annual per capita national yield means, for a revenue source for a fiscal year, the amount determined by the formula is the national yield for that revenue source for the fiscal year that is two years prior to that fiscal year; is the national yield for that revenue source for the fiscal year that is three years prior to that fiscal year; is the national yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and is the aggregate of the average annual population of all provinces for that fiscal year. (rendement national annuel moyen par habitant)
- 3.5(1)[p71]
average annual per capita revenue to be equalized means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula is the revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year; is the revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year; is the revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and is the average annual population of that province for that fiscal year. (revenu annuel moyen sujet à péréquation par habitant)
- 3.5(1)[p72]
average annual per capita yield means, in respect of a province for a revenue source for a fiscal year, an amount determined by the formula is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year; is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year; is the yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and is the average annual population of that province for that fiscal year. (rendement annuel moyen par habitant)
- 3.5(1)[p73]
average annual population means, in respect of a province for a fiscal year, the amount determined by the formula is the population of that province for the fiscal year that is two years prior to that fiscal year; is the population of that province for the fiscal year that is three years prior to that fiscal year; and is the population of that province for the fiscal year that is four years prior to that fiscal year. (population annuelle moyenne)
- 3.5(1)[p74]
equalized fiscal capacity means, in respect of a province for a fiscal year, the product obtained by multiplying the per capita equalized fiscal capacity of that province for that fiscal year by the average annual population of that province for that fiscal year. (capacité fiscale après péréquation)
- 3.5(1)[p75]
national average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces. (taux d’imposition national moyen)
- 3.5(1)[p76]
national revenue to be equalized means, in respect of a revenue source for a fiscal year, the amount equal to the aggregate of the revenue to be equalized for that revenue source for that fiscal year for all provinces. (revenu national sujet à péréquation)
- 3.5(1)[p77]
national yield means, for a revenue source for a fiscal year, the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by the aggregate revenue base of all provinces in respect of that revenue source for that fiscal year. (rendement national)
- 3.5(1)[p78]
per capita equalization payment means, in respect of a province for a fiscal year, the quotient obtained by dividing the fiscal equalization payment that would be paid to that province for that fiscal year, if the amount of that payment were determined under section 3.2 and subsections 3.4(1) to (4) as if that province had not made an election under subsection 3.2(2), by the average annual population of that province for that fiscal year. (paiement de péréquation par habitant)
- 3.5(1)[p79]
per capita equalized fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formula have the same meaning as the descriptions of A, B and F, respectively, in the definition total per capita fiscal capacity; and is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined under paragraph 3.2(1)(a). (capacité fiscale par habitant après péréquation)
- 3.5(1)[p80]
per capita pre-adjustment equalized fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formula have the same meaning as the descriptions of A, B, E and F, respectively, in the definition total per capita fiscal capacity; and is the per capita equalization payment for that province for that fiscal year. (capacité fiscale par habitant après péréquation et avant rajustement)
- 3.5(1)[p81]
revenue base means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. (assiette)
- 3.5(1)[p81](a)
- 3.5(1)[p82]
revenue source means any of the following sources from which provincial revenues are or may be derived:
- 3.5(1)[p81](b)
- 3.5(1)[p82](a)
revenues relating to personal income;
- 3.5(1)[p81](c)
- 3.5(1)[p82](b)
revenues relating to business income;
- 3.5(1)[p81](d)
- 3.5(1)[p82](c)
revenues relating to consumption;
- 3.5(1)[p81](e)
- 3.5(1)[p82](d)
revenues derived from property taxes; and
- 3.5(1)[p82](e)
revenues derived from natural resources. (source de revenu)
- 3.5(1)[p87]
- 3.5(1)[p88]
revenue to be equalized means, in respect of a revenue source for a province for a fiscal year, It may be defined more particularly by the regulations. (revenu sujet à péréquation)
- 3.5(1)[p88](a)
the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source; and
- 3.5(1)[p89]
- 3.5(1)[p88](b)
in the case of a revenue source other than a revenue source referred to in paragraph (e) of the definition revenue source, the product obtained by multiplying the sum of miscellaneous revenues derived by that province for the fiscal year by the quotient obtained by dividing the sum of revenues from that revenue source derived by all provinces for that fiscal year by the sum of all revenues derived by all provinces from the revenue sources referred to in paragraphs (a) to (d) of the definition revenue source for that fiscal year.
- 3.5(1)[p90]
- 3.5(1)[p91]
total per capita fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formula is the aggregate of that province’s average annual per capita yield for each revenue source, except the one referred to in paragraph (e) of the definition revenue source, for that fiscal year; is that province’s average annual per capita revenue to be equalized, for the revenue source referred to in paragraph (e) of the definition revenue source, for that fiscal year; is any fiscal equalization payment that would be paid to that province for that fiscal year if the amount of that payment were determined in accordance with section 3.2 without regard to section 3.4; is, with respect to Nova Scotia, any amount that may be paid to that province for that fiscal year in accordance with sections 7 and 8 and 10 to 14 of the Nova Scotia and Newfoundland and Labrador Additional …
- 3.5(1)[p92]
yield means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base for that revenue source for that fiscal year. (rendement)
- 3.5(2)Deduction in computing revenue to be equalized
In computing the revenue to be equalized from the revenue source described in paragraph (a) of the definition revenue source in subsection (1) for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.
- 3.5(3)Municipal revenues
For the purposes of this Part, the revenue derived by each municipality, board, commission or other local authority in a province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year is both deemed to be revenue derived by that province and
- 3.5(3)(a)
in the case of local government property taxes, property taxes within the meaning of paragraph (d) of the definition revenue source in subsection (1); and
- 3.5(3)(b)
in the case of other miscellaneous local government taxes and revenues, included in miscellaneous revenues for the purpose of the definition revenue to be equalized in subsection (1).
- 3.6Repealed
[Repealed, 2013, c. 33, s. 116]
- 3.7Repealed
[Repealed, 2013, c. 33, s. 116]
- 3.71Additional fiscal equalization payment
- 3.71(1)
An additional fiscal equalization payment for the period referred to in subsection (2) may be paid to Nova Scotia equal to the amount by which is greater than
- 3.71(1)(a)
the aggregate of the following amounts:
- 3.71(1)(a)(i)
the aggregate of the fiscal equalization amounts computed under section 3.72 for that province for all fiscal years in the period, and
- 3.71(1)(a)(ii)
the aggregate of the amounts that would be paid to that province for all fiscal years in the period in accordance with sections 7 to 14 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act as that Act read on April 1, 2007, computed as if the fiscal equalization payment for that province for each fiscal year in the period were equal to the fiscal equalization amount computed under section 3.72 for that province for that fiscal year
- 3.71(1)(b)
the aggregate of the following amounts:
- 3.71(1)(b)(i)
the aggregate of the fiscal equalization payments paid to that province for the period, and
- 3.71(1)(b)(ii)
the aggregate of the amounts paid to that province for the period in accordance with sections 7 to 14 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act.
- 3.71(2)Definition of period
For the purpose of subsection (1), period means the period beginning on April 1, 2008 and ending on the earlier of
- 3.71(2)(a)
March 31 of the fiscal year preceding the first fiscal year with respect to which Nova Scotia does not meet the conditions under paragraphs 12(1)(a) and (b) of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act and is not receiving any transitional payments under section 14 of that Act, and
- 3.71(2)(b)
March 31, 2020.
- 3.72Fiscal equalization amount
- 3.72(1)
For the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average of
- 3.72(1)(a)
the greater of zero and the amount determined by the formula is the per capita equalization standard for that fiscal year, is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, and is the average annual population of that province for that fiscal year, and
- 3.72(1)(b)
the amount determined by the formula is for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035, is the five-province per capita equalization standard for that fiscal year determined under subsection (3), is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, is the average annual population of that province for that fiscal year, and is the aggregate of the amount for each of the provinces determined by the formula is the five-province per capita equalization standard for that fiscal year determined under subsection (3), is the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal…
- 3.72(2)Clarification — paragraph (1)(a)
For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure that
- 3.72(2)(a)
the amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero: is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, is the fiscal equalization amount for that province for that fiscal year, and is the average annual population of that province for that fiscal year; and
- 3.72(2)(b)
the aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal to
- 3.72(2)(b)(i)
for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and
- 3.72(2)(b)(ii)
for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.
- 3.72(3)Clarification — paragraph (1)(b)
For the purposes of paragraph (1)(b),
- 3.72(3)(a)
the five-province per capita equalization standard for a fiscal year is the amount determined by the formula is the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year, is the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year, is the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year, is the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in res…
- 3.72(3)(b)
if, for a province, the value determined for F in paragraph (1)(b) is greater than the value determined for E in that paragraph, the difference between those values in relation to that province is deemed to be zero; and
- 3.72(3)(c)
if, for a province, the value determined for J in the description of H in paragraph (1)(b) is greater than the value determined for I in that description, the difference between those values in relation to that province is deemed to be zero.
- 3.72(4)Adjustment of revenue to be equalized
Subject to subsections (5) and (6), if, for a fiscal year, the fiscal equalization amount for a province determined under subsection (1) is greater than zero and that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.
- 3.72(5)Nova Scotia
For the purpose of calculating the additional fiscal equalization payment that may be paid to Nova Scotia under subsection 3.71(1),
- 3.72(5)(a)
subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(2) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and
- 3.72(5)(b)
subsection (4) does not apply to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1).
- 3.9(1)[p126]
- 3.72(6)Repealed
[Repealed, 2013, c. 33, s. 117]
- 3.9(1)[p127]
- 3.8Repealed
[Repealed, 2013, c. 33, s. 118]
- 3.9(1)[p128]
- 3.9Interpretation
- 3.9(1)[p129]
- 3.9(1)
The following definitions apply in this section and in sections 3.71 and 3.72.
- 3.9(1)[p130]
- 3.9(1)[p131]
average annual per capita yield means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula is the yield for that revenue source for the fiscal year that is one year prior to that fiscal year; is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year; is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year; is the population of that province for the fiscal year that is one year prior to that fiscal year; is the population of that province for the fiscal year that is two years prior to that fiscal year; and is the population of that province for the fiscal year that is three years prior to that fiscal year. (rendement annual moyen par habitant)
- 3.9(1)[p131](a)
- 3.9(1)[p132]
average annual population means, in respect of a province for a fiscal year, the amount determined by the formula is the population of that province for the fiscal year that is one year prior to that fiscal year; is the population of that province for the fiscal year that is two years prior to that fiscal year; and is the population of that province for the fiscal year that is three years prior to that fiscal year. (population annuelle moyenne)
- 3.9(1)[p131](b)
- 3.9(1)[p132](a)
- 3.9(1)[p133]
average annual revenue base means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula is the revenue base for the fiscal year that is one year prior to that fiscal year; is the revenue base for the fiscal year that is two years prior to that fiscal year; and is the revenue base for the fiscal year that is three years prior to that fiscal year. (assiette annuelle moyenne)
- 3.9(1)[p131](c)
- 3.9(1)[p132](b)
- 3.9(1)[p134]
national average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces. (taux d’imposition national moyen)
- 3.9(1)[p131](d)
- 3.9(1)[p132](c)
- 3.9(1)[p135]
revenue base means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. (assiette)
- 3.9(1)[p131](e)
- 3.9(1)[p132](d)
- 3.9(1)[p136]
revenue source means any of the following sources from which provincial revenues are or may be derived:
- 3.9(1)[p131](f)
- 3.9(1)[p132](e)
- 3.9(1)[p136](a)
personal income taxes;
- 3.9(1)[p131](g)
- 3.9(1)[p132](f)
- 3.9(1)[p136](b)
corporation income taxes, and revenues derived from government business enterprises that are not included in any other paragraph of this definition;
- 3.9(1)[p131](h)
- 3.9(1)[p132](g)
- 3.9(1)[p136](c)
taxes on capital of corporations;
- 3.9(1)[p131](i)
- 3.9(1)[p132](h)
- 3.9(1)[p136](d)
general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes;
- 3.9(1)[p131](j)
- 3.9(1)[p132](i)
- 3.9(1)[p136](e)
tobacco taxes;
- 3.9(1)[p131](k)
- 3.9(1)[p132](j)
- 3.9(1)[p136](f)
motive fuel taxes derived from the sale of gasoline;
- 3.9(1)[p131](l)
- 3.9(1)[p132](k)
- 3.9(1)[p136](g)
motive fuel taxes derived from the sale of diesel fuel;
- 3.9(1)[p131](l)(i)
- 3.9(1)[p132](l)
- 3.9(1)[p136](h)
non-commercial motor vehicle licensing revenues;
- 3.9(1)[p131](l)(ii)
- 3.9(1)[p132](l)(i)
- 3.9(1)[p136](i)
commercial motor vehicle licensing revenues;
- 3.9(1)[p131](m)
- 3.9(1)[p132](l)(ii)
- 3.9(1)[p136](j)
alcoholic beverage revenues;
- 3.9(1)[p131](n)
- 3.9(1)[p132](m)
- 3.9(1)[p136](k)
hospital and medical care insurance premiums;
- 3.9(1)[p131](o)
- 3.9(1)[p132](n)
- 3.9(1)[p136](l)
forestry revenues from
- 3.9(1)[p131](p)
- 3.9(1)[p132](o)
- 3.9(1)[p136](l)(i)
crown lands, and
- 3.9(1)[p131](q)