Federal-Provincial Fiscal Arrangements Regulations, 2007

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Federal-Provincial Fiscal Arrangements Regulations, 2007

SOR/2007-303FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
Registration 2007-12-13
Federal-Provincial Fiscal Arrangements Regulations, 2007
P.C. 2007-1954 2007-12-13Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 40Footnote a of the Federal-Provincial Fiscal Arrangements ActFootnote b, hereby makes the annexed Federal-Provincial Fiscal Arrangements Regulations, 2007.

Return to footnote aS.C. 2007, c. 29, s. 73
Return to footnote bR.S., c. F-8; S.C. 1995, c. 17, s. 45(1)
Interpretation

1 (1) The following definitions apply in these Regulations.

Act
Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)
adjusted number of litres of diesel fuel taxed at road-use rate

adjusted number of litres of diesel fuel taxed at road-use rate means, in respect of a province or territory, the amount that is the difference between

(a) the number of litres of diesel fuel that are,

(i) in the case of a province or territory in which tax at road-use rate is not paid throughout the calendar year, sold in the province or territory for use on roads, as determined 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 or, if that data is not available, on the basis of any other relevant information, or
(ii) in any other case, taxed at road-use rate and sold in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002, Gasoline and Other Petroleum Fuels Sold, Annual and 405-0003, Gasoline and Other Petroleum Fuels Sold, Monthly, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information; and

(b) the number that is,

(i) in the case of Ontario, the number of litres of diesel fuel sold for use by farm trucks in Ontario, as determined by the Minister on the basis of any relevant information, or

(ii) in the case of any other province or a territory, the product of

(A) the number of litres of diesel fuel that are,

(I) in the case of a province or territory in which tax at road-use rate is not paid throughout the calendar year, sold in the province or territory for use on roads, 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, or
(II) in any other case, taxed at road-use rate 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 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

(B) in the case of

(I) Nunavut, 0.91,
(II) the Northwest Territories, 0.8,
(III) Yukon, 0.31,
(IV) Prince Edward Island, 0.3,
(V) Quebec or Newfoundland and Labrador, 0.25,
(VI) Nova Scotia or New Brunswick, 0.15, and
(VII) Manitoba, British Columbia, Saskatchewan or Alberta, zero. (nombre rajusté de litres de carburant diesel taxés au taux d’utilisation routière)

adjusted number of litres of gasoline taxed at road-use rate
adjusted number of litres of gasoline taxed at road-use rate means, in respect of a province or territory, the number of litres of gasoline taxed at road-use rate that are sold in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002, Gasoline and Other Petroleum Fuels Sold, Annual and 405-0003, Gasoline and Other Petroleum Fuels Sold, Monthly, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any relevant information, including the revenues of those sales divided by that tax rate minus, in the case of a province or territory where gasoline that is sold for use by farm trucks is taxed at road-use rate, the number of litres of gasoline that are sold for use by farm trucks in the province or territory. (nombre rajusté de litres d’essence taxés au taux d’utilisation routière)
assessed market value of residential property
assessed market value of residential property means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of residential property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from information regarding residential property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure inter-jurisdictional comparability. (valeur marchande estimée des propriétés foncières résidentielles)
business sector
business sector means that sector as defined by Statistics Canada for the purpose of its System of National Accounts. (secteur des entreprises)
CANSIM table
CANSIM table means a table published by Statistics Canada showing information from its Canadian socio-economic information management (CANSIM) database. (tableau CANSIM)
federal general government sector
federal general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur de l’administration publique générale fédérale)
federal government sector
federal government sector[Repealed, SOR/2013-225, s. 1]
federal income tax as determined by the micro-simulation model
federal income tax as determined by the micro-simulation model means, in relation to an individual — not including a trust — in a province or territory for a taxation year, the amount of tax otherwise payable under this Part in respect of that year, as defined in subsection 120(4) of the Income Tax Act, as determined by means of the micro-simulation model. (impôt fédéral sur le revenu déterminé par le modèle de microsimulation)
Financial Management System
Financial Management System[Repealed, SOR/2013-225, s. 1]
fiscal arrangements period
fiscal arrangements period[Repealed, SOR/2008-318, s. 2]
Government Finance Statistics
Government Finance Statistics means the system of accounts for government finances used by Statistics Canada. (statistiques de finances publiques)
health and social service institutions sub-sector
health and social service institutions sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des institutions de services de santé et de services sociaux)
household final consumption expenditure category
household final consumption expenditure category means any of the household consumption expenditure series categories as defined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts. (catégorie de 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) new residential housing expenditures;
(b) residential renovation expenditures;
(c) residential housing transfer expenditures. (catégorie de dépenses de logement)

local general government sector
local general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales locales)
local general government sub-sector
local general government sub-sector[Repealed, SOR/2013-225, s. 1]
local government sector
local government sector[Repealed, SOR/2013-225, s. 1]
local government sub-sector
local government sub-sector means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques locales)
micro-simulation model
micro-simulation model means the model maintained by the Department of Finance to simulate the assessment of personal income taxes based on information from T1 tax returns for a taxation year provided to that Department by the Canada Revenue Agency. (modèle de microsimulation)
provincial and territorial general government sector
provincial and territorial general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales provinciales et territoriales)
provincial and territorial general government sub-sector
provincial and territorial general government sub-sector[Repealed, SOR/2013-225, s. 1]
provincial and territorial government sector
provincial and territorial government sector[Repealed, SOR/2013-225, s. 1]
provincial and territorial government sub-sector
provincial and territorial government sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques provinciales et territoriales)
publication
publication means an official printed or electronic release of information to the public. (publication)
public or non-profit entity category

public or non-profit entity category means any of the following categories of entities, other than those in the business sector:

(a) hospitals;
(b) universities, colleges, C.E.G.E.P.s, elementary and secondary schools and other educational institutions;
(c) nursing and residential care facilities;
(d) non-profit organizations;
(e) municipal governments, excluding any portions that are described in paragraphs (a) to (c). (catégorie d’entités publiques ou à but non-lucratif)

school boards sub-sector
school boards sub-sector means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des commissions scolaires)
taxation year
taxation year means a taxation year as defined in the Income Tax Act. (année d’imposition)
taxes on products
taxes on products means taxes on products as defined by Statistics Canada for the purpose of its System of National Accounts, whether imposed by the federal or a provincial, territorial or local government. (taxes sur les produits)
universities and colleges sub-sector
universities and colleges sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des universités et des collèges)
university and college sub-sector
university and college sub-sector[Repealed, SOR/2013-225, s. 1]
working day
working day means a day that is not a Saturday or a holiday. (jour ouvrable)

(2) In these Regulations, the words gas, hydrocarbon and oil have the same meaning as in subsection 2(1) of the Energy Administration Act.
(3) In these Regulations, a reference by a specific title or identification number to a publication or other document prepared by Statistics Canada includes a reference to any other publication or document that is prepared by Statistics Canada in lieu of, or in substitution for it.
(4) In these Regulations, a reference to a business enterprise of a province or territory means a government business enterprise, as that term is used by Statistics Canada for the purpose of its System of National Accounts.
(5) In Parts 1, 1.1 and 2, province does not include Yukon, the Northwest Territories or Nunavut.

SOR/2008-318, s. 2;
SOR/2013-225, s. 1.

Previous Version

Application

2 (1) Parts 1 and 1.1 of these Regulations apply to payments that may be made under Parts I and I.1 of the Act for a fiscal year beginning on or after April 1, 2014.
(2) Part 2 of these Regulations applies to payments that may be made under Part II of the Act for a fiscal year beginning on or after April 1, 2012.

SOR/2013-225, s. 2.
Previous Version

2.1 Despite any other provision of these Regulations, for the purpose of determining a revenue source or a revenue base under Part 1 or 1.1, there shall be excluded from the revenue of Ontario any amount obtained through a debt retirement charge levied under Part V.1 of the Electricity Act, 1998, S.O. 1998, c. 15, Sch. A, and from the revenue of Nova Scotia and the revenue of New Brunswick any amount levied on electricity consumption exclusively for the purpose of repaying the debt managed, respectively, by the Nova Scotia Power Finance Corporation and the New Brunswick Electric Finance Corporation.
SOR/2015-248, s. 1.

PART 1 Fiscal Equalization Payments

Interpretation

3 The following definitions apply in this Part.

allocated corporation taxable income attributable to the province for the fiscal year

allocated corporation taxable income attributable to the province for the fiscal year means, in relation to a province 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


is the amount determined by the formula
B - C
where


is the sum of the corporations’ taxable income earned in the province 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


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


is the capital gains refund payable to the corporation under the Income Tax Act that constitutes income earned in the province 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


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,


is the sum of the corporations’ taxable income earned in the province 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


is the amount determined by the formula
E/F
where


is the aggregate, over all provinces, of the amounts determined by the formula
I × (D/J)
where


is the small business tax rate under the province’s income tax legislation that applies, as a result of the application of the provincial 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,


is the amount determined for D in the first formula in this definition, and


is the aggregate, over all provinces, of the amounts determined for D, and


is the aggregate, over all provinces, of the amounts determined by the formula
K × (A/L)
where


is each province’s general corporate income tax rate for the calendar year that ends in the fiscal year,


is the amount determined for A in the first formula in this definition, and


is the aggregate, over all provinces, of the amounts determined for A. (revenu imposable réparti des personnes morales attribuable à la province pour l’exercice)

assessed market value of residential property
assessed market value of residential property[Repealed, SOR/2013-225, s. 3]
business sector industry
business sector industry[Repealed, SOR/2013-225, s. 3]
capital expenditures for machinery and equipment
capital expenditures for machinery and equipment[Repealed, SOR/2013-225, s. 3]
capital expenditures for non-residential construction
capital expenditures for non-residential construction[Repealed, SOR/2013-225, s. 3]
certificate
certificate means the certificate referred to in section 12. (certificat)
Crown land
Crown land means, in relation to a province, land vested in Her Majesty in right of the province. (terres domaniales)
electricity enterprise

electricity enterprise means the following corporations and authorities:

(a) British Columbia Hydro and Power Authority;
(b) Columbia Power Corporation;
(c) [Repealed, SOR/2008-318, s. 3]
(d) Hydro Quebec;
(e) Manitoba Hydro;
(e.1) New Brunswick Power Holding Corporation and its subsidiaries;
(e.2) New Brunswick Power Corporation and its subsidiary;
(f) Newfoundland and Labrador Hydro Corporation;
(g) Ontario Power Generation; and
(h) Saskatchewan Power Corporation. (société d’électricité)

federal income tax payable

federal income tax payable means, in relation to an individual – including a mutual fund trust – in a province 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; and
(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. (impôt fédéral sur le revenu à payer)

games of chance

games of chance include

(a) games that involve the sale of any type of lottery ticket, including

(i) conventional on-line and off-line lottery tickets,
(ii) instant lottery tickets, including scratch-and-win tickets and break-open tickets, and
(iii) sports-betting tickets;

(b) games that are played on video lottery terminals;
(c) games that are played on slot machines;
(d) games played at casinos; and
(e) bingo. (jeux de hasard)

housing expenditure category
housing expenditure category[Repealed, SOR/2013-225, s. 3]
housing expenditures
housing expenditures[Repealed, SOR/2013-225, s. 3]
hydrocarbon deposits
hydrocarbon deposits means naturally occurring hydrocarbon deposits. (gisements d’hydrocarbures)
intermediate input commodity
intermediate input commodity[Repealed, SOR/2013-225, s. 3]
intermediate input expenditures
intermediate input expenditures[Repealed, SOR/2013-225, s. 3]
minerals
minerals[Repealed, SOR/2013-225, s. 3]
net provincial sales tax revenues
net provincial sales tax revenues[Repealed, SOR/2013-225, s. 3]
new oil
new oil[Repealed, SOR/2013-225, s. 3]
non-business sector industry
non-business sector industry[Repealed, SOR/2013-225, s. 3]
personal expenditure category
personal expenditure category[Repealed, SOR/2013-225, s. 3]
personal expenditures
personal expenditures[Repealed, SOR/2013-225, s. 3]
private land
private land means, in relation to a province, land other than its Crown land, including land in the province that is vested in Her Majesty in right of Canada. (terres privées)
simulated federal income tax
simulated federal income tax[Repealed, SOR/2013-225, s. 3]
third tier oil
third tier oil[Repealed, SOR/2013-225, s. 3]

SOR/2008-318, s. 3;
SOR/2013-225, s. 3.

Previous Version

DIVISION 1Fiscal Equalization to the Provinces

Interpretation

3.1 The following definitions apply in this Division.

business sector industry
business sector industry means any of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (industrie du secteur des entreprises)
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 National 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 National 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 National Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)
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, also as determined by Statistics Canada. (dépenses de consommation finale des ménages)

housing expenditures

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

(a) new residential housing, including the land, as determined by Statistics Canada;
(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 commodity
intermediate input commodity means any of the intermediate input commodities as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (intrant intermédiaire)
intermediate input expenditures
intermediate input expenditures means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)
net provincial sales tax revenues
net provincial sales tax revenues means revenues described in subparagraphs 4(1)(c)(i) and (ii), net of any provincial sales tax rebates. (recettes de taxe de vente provinciale nettes)
non-business sector industry

non-business sector industry means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix:

(a) non-profit institutions serving households;
(b) government education services;
(c) government health services;
(d) other municipal government services. (industrie d’activité non commerciale)

SOR/2013-225, s. 4.

Revenue Source

4 (1) The provincial revenues that are derived from, or that are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (e) of the definition revenue source in subsection 3.5(1) of the Act are

(a) in the case of revenues relating to personal income referred to in paragraph (a) of that definition,

(i) taxes imposed by a province on the income of individuals or unincorporated businesses, including a levy other than a universal pension plan levy,
(ii) taxes imposed by a province on the payroll of employers, and
(iii) revenues derived from levies or premiums imposed by a province specifically for the purpose of financing hospitalization insurance, medical care insurance or drug insurance, other than contributions to the Nova Scotia Seniors’ Pharmacare Program;
(iv) [Repealed, SOR/2013-225, s. 5]

(b) in the case of revenues relating to business income referred to in paragraph (b) of that definition,

(i) taxes, other than those referred to in paragraph (e), that are imposed by a province on the income of corporations,

(ii) remittances to a provincial government of profits of business enterprises of the province, other than remittances by

(A) a liquor board, commission or authority of the province,
(B) an enterprise that is engaged entirely or primarily in the marketing of oil or natural gas,
(C) an enterprise, board, commission or authority that is engaged in the administration of a provincial lottery, and
(D) an electricity enterprise,

(iii) revenues derived by a province from taxes imposed by the province on the paid-up capital of corporations, and
(iv) fines and penalties imposed on businesses by a province or local government;

(c) in the case of revenues relating to consumption referred to in paragraph (c) of that definition,

(i) sales taxes – including those on meals, hotel services, telecommunications and cable television, and amusement taxes – that are not described elsewhere in this subsection and that are imposed by a province or local government on final purchasers or on users of goods and services,
(ii) amounts paid to a province in accordance with a sales tax harmonization agreement,
(iii) a specific tax imposed by a province on final purchasers of tobacco and tobacco products,
(iv) taxes, other than those referred to in subparagraph (xv), that are imposed by a province on final purchasers of gasoline and diesel fuel used in an internal combustion engine, including aviation fuel and railway fuel, and on purchasers of liquefied petroleum gas,

(v) revenues derived by a province from fees for

(A) driver’s and chauffeur’s licences, and
(B) licences for, and registrations of, personal motor vehicles,

(vi) revenues derived by a province from fees for licences and registrations of commercial motor vehicles, including

(A) fees for licences for, and registrations of, trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,
(B) public service and common carrier fees, and
(C) revenues derived under reciprocity agreements with other provinces in respect of the licensing of commercial vehicles,

(vii) revenues derived by a province from

(A) remittances, to the provincial government by a liquor board, commission or authority of the province, of profits arising from sales of alcoholic beverages,
(B) a specific sales tax imposed by the province on the sale of alcoholic beverages by a liquor board, commission or authority of the province, and
(C) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages,

(viii) [Repealed, SOR/2013-225, s. 5]
(ix) taxes imposed by a province on insurance premiums,
(x) taxes imposed by a province on amounts wagered in the province on harness and running horse races,

(xi) profits derived from the operation of games of chance that are remitted to a provincial government by

(A) a business enterprise, commission, authority or board of the province that conducts and manages games of chance in the province,
(B) a business enterprise, commission, authority or board that is jointly owned by the province and one or more other provinces and that conducts and manages games of chance in the province, or
(C) a business enterprise, commission, authority or board of another province that conducts and manages games of chance in the province,

(xii) revenues derived by a province from a tax imposed on casino winnings or from any other similar direct or indirect tax that is imposed in relation to the operation or sale of games of chance,
(xiii) profits, other than those referred to in subparagraph (xi), that are derived from the sale of goods or services – including the sale of food, drink, lodging and parking space – that are remitted to a provincial government by a casino that is owned or controlled by a business enterprise, commission, authority or board of the province or another province,
(xiv) the province’s share of revenue from any revenue that is shared by Canada and the province, other than the revenues referred to in subparagraphs (e)(vii) and (viii), and
(xv) a carbon levy or tax imposed by a province, including a tax on fuel that is proportional to the greenhouse gas emissions that are generated by the burning of fuel, and revenues raised from auctioning carbon allowances, credits or permits under an emissions trading system;

(d) in the case of revenues derived from property taxes and miscellaneous revenues referred to in paragraph (d) of that definition,

(i) taxes imposed by a province or local government on

(A) the owner of real or immovable property,
(B) the occupant of real or immovable property, if the owner is exempt from property taxes on that property, and
(C) a person occupying or using real or immovable property for the purpose of carrying on a business, if the taxes are computed in relation to that occupation or use by the person,

(ii) grants in lieu of taxes described in subparagraph (i) received by a province or local government in relation to real or immovable property that is exempt from taxation, other than that owned by Her Majesty in right of the province and occupied by a provincial government department or owned by the local government,
(iii) taxes imposed by a province or local government on the sale price or value of real or immovable property when it is transferred,

(iv) subject to subsection (1.1), any other revenues derived by a province that are not included as revenues elsewhere in this subsection, including

(A) those derived from natural resources, other than those described in paragraph (e),
(B) those derived from fines and penalties imposed by the province, other than those imposed on businesses, and
(C) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations, and

(v) subject to subsection (1.1), any other revenues derived by a local government that are not included as revenues elsewhere in this subsection, including

(A) those derived from fines and penalties imposed by a local government, other than those imposed on businesses, and
(B) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations; and

(e) in the case of revenues derived from natural resources referred to in paragraph (e) of that definition,

(i) revenues attributable to oil from hydrocarbon deposits in a province, including revenues derived by the province from

(A) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, and
(C) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits,

(ii) revenues derived by a province from a levy imposed by the province for the privilege of

(A) mining and carrying out the in-situ production of bitumen that may be used to produce synthetic petroleum, and
(B) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board,

(iii) revenues derived by a province, from domestically sold natural gas and exported natural gas, attributable to gas produced from hydrocarbon deposits in the province, including revenues derived from

(A) a levy imposed by the province for the privilege of producing gas or gas by-products from hydrocarbon deposits,
(B) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, and
(C) remittances to the provincial government of the profits of the business enterprises of the province that are engaged, entirely or primarily, in the marketing of gas or gas by-products produced from hydrocarbon deposits,

(iv) revenues derived by a province from the granting of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from hydrocarbon deposits,
(v) revenues, other than those from a revenue source referred to in any of subparagraphs (i) to (iv), derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products and helium or other gaseous products from hydrocarbon deposits in the province,
(vi) revenues, derived by a province from the exploration for and the development and production of oil, natural gas and gas by-products from hydrocarbon deposits in the province, of a kind that falls within a revenue source set out in any of subparagraphs (i) to (iii) but that cannot be attributed only to that revenue source,
(vii) revenues received by Newfoundland and Labrador from the Government of Canada under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act,
(viii) revenues received by Nova Scotia from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act,

(ix) revenues attributable to mining in a province and derived by the province from

(A) a tax imposed by the province specifically on income from the mining of minerals, and
(B) royalties, licences, rentals and fees that are related to the exploration, development or production of minerals,

(x) revenues, other than payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, attributable to forestry on Crown land and private land in the province and that are derived by the province from

(A) a tax imposed by the province specifically on income from logging on the land, and
(B) royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on the land,

(xi) revenues derived by a province that are attributable to the right to use, or the use of, water resources, and
(xii) remittances to a provincial government of the profits of an electricity enterprise.

(1.1) The following revenues are excluded from subparagraphs (1)(d)(iv) and (v), as applicable:

(a) revenues included in the “Sales of goods and services” revenue category of the Government Finance Statistics;
(b) revenues included in the “Social contributions” category of the Government Finance Statistics;
(c) revenues included in the “Property income revenue” category of the Government Finance Statistics;
(d) any transfer payments received from other governments;
(e) payments to a province by the Government of Canada under section 99 of the Softwood Lumber Products Export Charge Act, 2006;
(f) personal and commercial auto insurance premiums; and
(g) agricultural insurance premiums.

(2) For the purpose of paragraph (1)(e), if a province has changed its method of accounting for a fiscal year so that the revenue referred to in that paragraph is derived during a period that is other than 12 months, the Minister may adjust the amount of that revenue for that fiscal year to offset any effect of that change.

SOR/2008-318, s. 4;
SOR/2013-225, s. 5;
2014, c. 13, s. 117.

Previous Version

Revenue Base

5 In respect of a revenue source for a province for a fiscal year, the definition revenue base in subsection 3.5(1) of the Act is more particularly defined to mean

(a) in the case of revenues relating to personal income, described in paragraph 4(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 revenues relating to business income, described in paragraph 4(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 National 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,
(IV) of an electricity enterprise, and
(V) of the Ontario Electricity Financial Corporation, the Nova Scotia Power Finance Corporation and the New Brunswick Electric 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 the provinces, of those numerators;

(c) in the case of revenues relating to consumption, as described in paragraph 4(1)(c), 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


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 net provincial sales tax revenues derived from those expenditures for that category in all provinces that levy a general sales tax and whose denominator is the total of those expenditures for that category in all of those provinces,


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 net provincial sales tax revenues derived from those expenditures for that category in all provinces that levy a general sales tax and whose denominator is the total of those expenditures for that category in all of those provinces,


is the capital expenditures for machinery and equipment by the business sector in the province multiplied by a fraction whose numerator is the total net provincial sales tax revenues derived from those expenditures by that sector in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces,


is the capital expenditures for non-residential structures by the business sector in the province multiplied by a fraction whose numerator is the total net provincial sales tax revenues derived from those expenditures by that sector in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces,


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 net provincial sales tax revenues derived from those expenditures by that category in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces,


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 net provincial sales tax revenues derived from those expenditures by that category in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces,


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 net provincial sales tax revenues derived from those expenditures for that commodity by that industry in all provinces that levy a general sales tax and whose denominator is the total of those expenditures for that commodity by that industry in all of those provinces,


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 net provincial sales tax revenues derived from those expenditures for that commodity by that industry in all provinces that levy a general sales tax and whose denominator is the total of those expenditures for that commodity by that industry in all of those provinces,


is the capital expenditures for intellectual property products by the business sector in the province multiplied by a fraction whose numerator is the total net provincial sales tax revenues derived from those expenditures by that sector in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces, and


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 net provincial sales tax revenues derived from those expenditures by that category in all provinces that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces; and

(d) in the case of revenues derived from property taxes and miscellaneous revenues, described in paragraph 4(1)(d), the weighted sum of three sub-bases, determined by the formula

(B1 × 0.575) + (B2 × 0.410) + (B3 × 0.015)
where

B1 
is the market value residential sub-base as determined by the formula
[(V × 1/V1) × 0.7] + [(P × 1/P1) × 0.3]
where


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,


is the population of the province for the fiscal year, as determined in accordance with section 11, and

P1 
is the aggregate, over all provinces, of the amounts determined for P,

B2 
is the commercial-industrial sub-base as determined by the formula
{[(F + G) × H] + I } × 1/N2
where


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 Input-Output Accounts,


is the product of

(i) the population of the province for the preceding fiscal year multiplied by its urban scale factor, which is equal to

(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 amount determined for F and whose denominator is the aggregate, over all provinces, of the values determined under subparagraph (i),


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,


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 and 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, and

B3 
is the farm sub-base as determined by the formula
[(K × L) + M] × 1/N3
where


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,


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 values determined for K,


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.

SOR/2008-318, s. 5;
SOR/2013-225, s. 6.

Previous Version

DIVISION 2Nova Scotia

[SOR/2013-225, s. 7]
Interpretation

6 The following definitions apply in this Division.

adjusted number of litres of diesel fuel taxed at road-use rate in the province
adjusted number of litres of diesel fuel taxed at road-use rate in the province[Repealed, SOR/2013-225, s. 8]
adjusted number of litres of gasoline taxed at road-use rate in the province
adjusted number of litres of gasoline taxed at road-use rate in the province[Repealed, SOR/2013-225, s. 8]
average tax rate

average tax rate means,

(a) for the purpose of subparagraph 8(1)(f)(i), the aggregate, over all provinces, of the provincial rate of gasoline tax applicable to road-use gasoline sold in each province 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 during that calendar year and whose denominator is the aggregate, over all provinces, of those numerators;
(b) for the purpose of subparagraph 8(1)(f)(ii), the aggregate, over all provinces, of the provincial tax rate applicable to aviation fuel sold in each province 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 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, of those numerators;
(c) for the purpose of subparagraph 8(1)(f)(iii), the aggregate, over all provinces, of the provincial tax rate applicable to gasoline sold for use by farm trucks in each province 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 during that calendar year and whose denominator is the aggregate, over all provinces, of those numerators;
(d) for the purpose of subparagraph 8(1)(g)(i), the aggregate, over all provinces, of the provincial rate of diesel tax applicable to road-use diesel fuel sold in each province 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 during that calendar year and whose denominator is the aggregate, over all provinces, of those numerators;

(e) for the purpose of subparagraph 8(1)(g)(ii), the aggregate, over all provinces, of the provincial tax rate applicable to railway fuel sold in each province 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 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 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 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, of those numerators; and

(f) for the purpose of subparagraph 8(1)(g)(iii), the aggregate, over all provinces, of the provincial tax rate applicable to diesel fuel sold for use by farm trucks in each province 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 during that calendar year and whose denominator is the aggregate, over all provinces, 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 for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix. (industrie du secteur des entreprises)
calculated net profits

calculated net profits means, for a province for a fiscal year, the difference that results from subtracting the capital assessed depreciation costs of the mining and quarrying industry in that province — including depreciation costs related to mine-site exploration and development, but not including those related to general exploration and development — as determined by Statistics Canada using the straight-line depreciation method on the basis of fixed capital flows and stocks data prepared for the purpose of its Provincial and Territorial Economic Accounts, from the net profits before taxes of that industry, calculated for the calendar year that ends in the fiscal year as the sum of the following, as determined by Statistics Canada on the basis of data from its Provincial Input-Output Accounts:

(a) the gross mixed income and gross operating surplus of that industry, and
(b) the commodity and other indirect taxes paid, less any subsidies received, by that industry. (bénéfice net)

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 National Accounts, net of any own-account expenditures and any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en capitale fixe pour la propriété intellectuelle)
capital expenditures for machinery or equipment
capital expenditures for machinery or 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 National Accounts, net of any federal or provincial general sales taxes, 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 National Accounts, net of any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)
general provincial sales tax revenues
general provincial sales tax revenues means revenues derived by a province from general sales taxes, including amounts paid to a province in accordance with a sales tax harmonization agreement. (recettes de taxe de vente provinciale générale)
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 federal or provincial general sales taxes, 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 federal or provincial general sales taxes, 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 federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses de consommation finale des ménages)

housing expenditures

housing expenditures means expenditures, net of any federal or provincial general sales taxes as determined by Statistics Canada, on

(a) new residential housing, including the land, as determined by Statistics Canada;
(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 commodity
intermediate input commodity means one of the intermediate input commodities that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix. (intrant intermédiaire)
intermediate input expenditures
intermediate input expenditures means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix, net of any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)
minerals
minerals means all metallic and non-metallic minerals classified by Natural Resources Canada for the purpose of its publication entitled General Review of the Mineral Industries, Mines, Quarries and Sand Pits, other than elemental sulphur. (minerais)
mining and quarrying industry

mining and quarrying industry means the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts:

(a) coal mining;
(b) iron ore mining;
(c) gold and silver ore mining;
(d) copper, nickel, lead and zinc ore mining;
(e) other metal ore mining;
(f) diamond mining; and
(g) potash mining. (industrie des mines et carrières)

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

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 means the gross revenues from the sale of games of chance, other than from the sale of lottery tickets and race track wagering games, less prize payouts in relation to those sales,

(a) including the net revenue after prize payouts from the sale of those games of chance by

(i) the provincially owned or provincially controlled business enterprises, boards, commissions or authorities referred to in subparagraphs 7(1)(z.3)(i) and (ii),
(ii) charitable organizations,
(iii) aboriginal governments, and
(iv) any other commercial enterprises, non-profit organizations or other entities, including entities controlled, managed or operated by, or on behalf of, aboriginal persons; and

(b) including the net revenue after prize payouts from sales of

(i) games of chance played on video lottery terminals,
(ii) games of chance played on slot machines, including slot machines located at race tracks,
(iii) games of chance, including those described in subparagraphs (i) and (ii), played at casinos, including charity casinos,
(iv) conventional paper bingo, electronic bingo, linked bingo and satellite bingo, and
(v) lottery ticket games sold at casinos, unless the net revenues from those sales are included in the revenue base described in paragraph 8(1)(z.2).

However, it does not include

(c) net revenue after prize payouts from the sale of raffle tickets; or
(d) revenue from the sale by casinos, of food, drink, lodging, parking space or any other goods or services other than games of chance. (revenu net, après versement des prix, provenant de jeux de hasard, à l’exclusion du revenu net provenant de la vente de billets de loterie et des taxes afférentes aux pistes de course)

net revenue after prize payouts from the sale of lottery tickets

net revenue after prize payouts from the sale of lottery tickets means the gross revenue from the sale of lottery tickets less prize payouts in relation to those sales,

(a) including the net revenue after prize payouts from the sale of lottery tickets by

(i) the provincially owned or provincially controlled business enterprises, boards, commissions or authorities referred to in subparagraphs 7(1)(z.2)(i) to (iii),
(ii) charitable organizations,
(iii) aboriginal governments, and
(iv) any other commercial enterprises, non-profit organizations or other entities, including entities controlled, managed or operated by, or on behalf of, aboriginal persons; and

(b) including the net revenue after prize payouts from the sale of lottery tickets for any game referred to in paragraph (a) of the definition “games of chance” in section 3.

However, it does not include the net revenue after prize payouts from the sale of
(c) raffle tickets, or

(d) lottery tickets in casinos, if the profits remitted or paid to the provincial government that are generated by those sales are counted as revenue from the revenue source set out in paragraph (z.3) of the definition revenue source in subsection 3.9(1) of the Act. (revenu net, après versement des prix, provenant de la vente de billets de loterie)

new oil

new oil means

(a) in the case of Alberta,

(i) oil from wells that draw from pools discovered on or after April 1, 1974 and before October 1, 1992,
(ii) oil from horizontal wells that draw from pools discovered on or after April 1, 1974, and
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes;

(b) in the case of British Columbia,

(i) oil from wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975 and that is not third tier oil,
(ii) oil from horizontal wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes,
(iv) oil from wells that received the new oil reference price under the National Energy Program, and
(v) oil from wells abandoned for three consecutive years and for which production resumed on or after January 1, 1981 and that had not been converted to an injection, pressure maintenance or observation well;

(c) in the case of Manitoba,

(i) oil from vertical wells that were drilled and completed on or after April 1, 1974 and before April 1, 1999,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1974,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1987 and before April 1, 1999,
(iv) oil from wells abandoned before April 1, 1974 and re-entered on or after April 1, 1974 and before April 1, 1999, and
(v) incentive oil;

(d) in the case of Saskatchewan,

(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1991,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1974 and before January 1, 1994, and
(iv) oil from wells producing less than 1.6 m3 per day that were drilled and completed before January 1, 1994; and

(e) in the case of all other provinces,

(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994, and
(ii) oil from horizontal wells that were drilled and completed on or after January 1, 1974. (nouveau pétrole)

non-business sector industry

non-business sector industry means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix:

(a) in the non-profit institutions serving households sector,

(i) educational services,
(ii) ambulatory health care services,
(iii) social assistance,
(iv) arts, entertainment and recreation,
(v) religious organizations,
(vi) grant-making, civic, and professional and similar organizations, and
(vii) other non-profit institutions serving households; and

(b) in the government sector,

(i) elementary and secondary schools,
(ii) community colleges and C.E.G.E.P.s,
(iii) universities,
(iv) other educational services,
(v) hospitals,
(vi) nursing and residential care facilities, and
(vii) other municipal government services. (industrie d’activité non commerciale)

number of litres of diesel fuel sold for use by farm trucks in the province
number of litres of diesel fuel sold for use by farm trucks in the province means 200 times the number of cubic metres of diesel fuel used in the agriculture industry in the province 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 dans la province)
number of litres of gasoline sold for use by farm trucks in the province
number of litres of gasoline sold for use by farm trucks in the province means 300 times the number of cubic metres of gasoline used in the agriculture industry in the province 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 dans la province)
regional price

regional price means the price per unit, as calculated by Statistics Canada for the purpose of the certificate by dividing the value of production by the volume of production using the value and volume of production data determined by Statistics Canada on the basis of its Annual Survey of Manufactures and Logging, of logs and bolts, pulpwood, industrial roundwood or fuelwood and firewood produced

(a) in the case of Ontario, in Ontario;
(b) in the case of Quebec, in Quebec;
(c) in the case of Nova Scotia, New Brunswick and Prince Edward Island, in the three provinces combined;
(d) in the case of British Columbia, in British Columbia;
(e) in the case of Manitoba, Saskatchewan and Alberta, in the three provinces combined; and

(f) in the case of Newfoundland and Labrador, in the provinces of Quebec and Newfoundland and Labrador combined. (prix régional)

relevant data
relevant data, in paragraphs 8(1)(m), (o), (q) and (r), means oil production data for the calendar year that ends in the fiscal year, or for the most recent calendar year for which that data is available, obtained from any of Statistics Canada, the Department of Natural Resources, a province or any provincial energy or resource board, commission or authority. (données pertinentes)
third tier oil

third tier oil means

(a) in the case of Alberta, oil from vertical wells that draw from pools discovered on or after October 1, 1992;
(b) in the case of British Columbia, oil from vertical wells that draw from pools or portions of pools in which no well drillings were completed before June 2, 1998;

(c) in the case of Manitoba,

(i) oil from wells, other than horizontal wells, that were drilled and completed on or after April 1, 1999,
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after April 1, 1999,
(iii) oil from wells, other than horizontal wells, abandoned before April 1, 1999 and re-entered on or after April 1, 1999, and
(iv) oil from wells, other than horizontal wells, that were inactive on April 1, 1999 and re-activated after April 1, 1999;

(d) in the case of Saskatchewan,

(i) oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994, and
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1994; and

(e) in the case of all other provinces, oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994. (pétrole de troisième niveau)

SOR/2008-318, s. 6;
SOR/2013-225, s. 8.

Previous Version

Revenue Source

7 (1) The provincial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (z.5) of the definition revenue source in subsection 3.9(1) of the Act are

(a) in the case of personal income taxes referred to in paragraph (a) of that definition,

(i) taxes imposed by a province on the income of individuals or unincorporated businesses, including a levy other than a universal pension plan levy, and
(ii) revenues derived from the Ontario Health Premium and Quebec Health Contribution;
(iii) [Repealed, SOR/2013-225, s. 9]

(b) in the case of taxes and revenues referred to in paragraph (b) of that definition,

(i) taxes, other than those referred to in paragraphs (l) and (v), that are imposed by a province on the income of corporations, and

(ii) remittances to a provincial government of profits of business enterprises of the province, other than remittances by

(A) a liquor board, commission or authority of the province,
(B) an enterprise that is engaged, entirely or primarily, in the marketing of oil or natural gas, and
(C) an enterprise, board, commission or authority that is engaged in the administration of a provincial lottery;

(c) in the case of taxes on capital of corporations referred to in paragraph (c) of that definition,

(i) taxes imposed by a province on the paid-up capital of corporations, and
(ii) taxes, levies and fees imposed by a province on the provincially guaranteed debt of government business enterprises or municipalities and on all outstanding amounts advanced by the province to those enterprises or municipalities;

(d) in the case of general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes referred to in paragraph (d) of that definition,

(i) sales taxes – including those on meals, hotel services, telecommunications and cable television and amusement taxes – that are not described elsewhere in this subsection and that are imposed by a province or local government on final purchasers or on users of goods and services, and
(ii) amounts paid to a province in accordance with a sales tax harmonization agreement,
(iii) a carbon levy or tax, including a tax that is imposed by a province on fuel and is proportional to the greenhouse gas emissions that are generated by the burning of fuel, and revenues raised from auctioning carbon allowances, credits or permits under an emissions trading system;

(e) in the case of tobacco taxes referred to in paragraph (e) of that definition, specific taxes imposed by a province on final purchasers of tobacco and tobacco products;
(f) in the case of motive fuel taxes derived from the sale of gasoline referred to in paragraph (f) of that definition, taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes or levies referred to in subparagraph (d)(iii) and taxes on the sale of liquefied petroleum gas;
(g) in the case of motive fuel taxes derived from the sale of diesel fuel referred to in paragraph (g) of that definition, taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes or levies referred to in subparagraph (d)(iii) and taxes on the sale of liquefied petroleum gas;

(h) in the case of non-commercial motor vehicle licensing revenues referred to in paragraph (h) of that definition, fees for

(i) driver’s and chauffeur’s licences, and
(ii) licences for, and registrations of, personal motor vehicles;

(i) in the case of commercial motor vehicle licensing revenues referred to in paragraph (i) of that definition, revenues derived by a province from fees for licences for and registrations of commercial motor vehicles, including

(i) fees for licences for, and registrations of, trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,
(ii) public service and common carrier fees, and
(iii) revenues derived under reciprocity agreements with other provinces in respect of the licensing of commercial vehicles;

(j) in the case of alcoholic beverage revenues referred to in paragraph (j) of that definition, revenues derived by a province from

(i) remittances to the provincial government by a liquor board, commission or authority of the province, of profits arising from sales of alcoholic beverages,
(ii) a specific sales tax imposed by the province on the sale of alcoholic beverages by a liquor board, commission or authority of the province, and
(iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages;

(k) in the case of hospital and medical care insurance premiums referred to in paragraph (k) of that definition, revenues derived by a province from taxes, levies or premiums imposed by a province specifically for the purpose of financing hospitalization insurance, medical care insurance or drug insurance, other than those described in subparagraph (a)(ii) and paragraph (y);
(l) in the case of forestry revenues derived from the revenue sources referred to in subparagraphs (l)(i) and (ii) of that definition, as the case may be, a tax imposed specifically on income from logging on Crown lands or on private lands and royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on those lands;

(m) in the case of conventional new oil revenues referred to in paragraph (m) of that definition, revenues derived by a province – other than those described in paragraphs (o) and (p) – that are attributable to new oil that is from hydrocarbon deposits in the province, including revenues derived from

(i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and
(iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

(n) in the case of conventional old oil revenues referred to in paragraph (n) of that definition, revenues derived by a province – other than those described in any of paragraphs (m) and (o) to (r) – that are attributable to oil from hydrocarbon deposits in the province, including revenues derived from

(i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and
(iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

(o) in the case of heavy oil revenues referred to in paragraph (o) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to oil from hydrocarbon deposits in the province, that has a density of at least 935 kg/m3 and is not third tier oil, including revenues derived from

(i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and
(iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

(p) in the case of mined oil revenues referred to in paragraph (p) of that definition, revenues derived by a province by means of a levy imposed by the province for the privilege of

(i) mining and carrying out the in-situ production of bitumen that may be used to produce synthetic petroleum, and
(ii) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board;

(q) in the case of the revenues referred to in paragraph (q) of that definition, revenues – other than those described in paragraphs (p) and (r) – derived by a province that are attributable to third tier oil from hydrocarbon deposits in the province, including

(i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and
(iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

(r) in the case of the revenues referred to in paragraph (r) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to third tier oil that is from hydrocarbon deposits in the province and that has a density of at least 935 kg/m3, including

(i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and
(iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

(s) in the case of revenues from domestically sold natural gas and exported natural gas referred to in paragraph (s) of that definition, revenues that are attributable to gas that is from hydrocarbon deposits in the province, including those derived by a province from

(i) a levy imposed by the province for the privilege of producing gas or gas by-products from hydrocarbon deposits,
(ii) a tax imposed by the province that is based on the assessed or estimated value of gas reserves, and
(iii) remittances to the provincial government of the profits of the business enterprises of the province that are engaged, entirely or primarily, in the marketing of gas or gas by-products from hydrocarbon deposits;

(t) in the case of sales of Crown leases and reservations on oil and natural gas lands referred to in paragraph (t) of that definition, revenues that are derived by a province from the granting of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from hydrocarbon deposits;
(u) in the case of oil and gas revenues referred to in paragraph (u) of that definition, revenues that are derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products, helium or other gaseous products from hydrocarbon deposits in the province, including oil and gas revenues of a kind that fall within the description of a revenue source set out in any of paragraphs (m) to (s) but that cannot be attributed only to that revenue source;

(v) in the case of mining revenues referred to in paragraph (v) of that definition, revenues that are derived by a province from

(i) a tax imposed by the province specifically on income from the mining of minerals, and
(ii) royalties, licences, rentals and fees that are related to the exploration, development or production of minerals;

(w) in the case of water power rentals referred to in paragraph (w) of that definition, revenues that are derived by a province from the right to use, or the use of, water resources;
(x) in the case of insurance premium taxes referred to in paragraph (x) of that definition, taxes imposed by a province on insurance premiums;
(y) in the case of payroll taxes referred to in paragraph (y) of that definition, taxes imposed by a province on the payroll of employers;

(z) in the case of provincial and local government property taxes referred to in paragraph (z) of that definition,

(i) taxes imposed by a province or local government

(A) on the owner of real or immovable property,
(B) on the occupant of real or immovable property, if the owner is exempt from property taxes in relation to that property, and
(C) on a person occupying or using real or immovable property for the purpose of carrying on a business if the taxes are computed in relation to that occupation or use by the person,

(ii) grants in lieu of taxes described in subparagraph (i) received by a provincial or local government in relation to real or immovable property that is exempt from taxation, other than that owned by Her Majesty in right of the province and occupied by a provincial government department or owned by the local government, and
(iii) taxes imposed by a province or local government on the sale price or value of real or immoveable property when it is transferred;

(z.1) in the case of race track taxes referred to in paragraph (z.1) of that definition, taxes imposed by a province on amounts wagered in the province on harness and running horse races;

(z.2) in the case of revenues from lottery ticket sales referred to in paragraph (z.2) of that definition, profits that are derived from the operation of the games described in paragraph (a) of the definition games of chance in section 3 and are remitted to a provincial government by

(i) a business enterprise, commission, authority or board of the province that conducts and manages games of chance in the province,
(ii) a business enterprise, commission, authority or board that is jointly owned by the province and one or more other provinces and that conducts and manages games of chance in the province, or
(iii) a business enterprise, commission, authority or board of another province that conducts and manages games of chance in the province;

(z.3) in the case of revenues referred to in paragraph (z.3) of that definition,

(i) profits derived from the operation of the games described in paragraphs (b) to (e) of the definition “games of chance” in section 3 that are remitted to a provincial government by

(A) a business enterprise, commission, authority or board of the province that conducts and manages games of chance in the province,
(B) a business enterprise, commission, authority or board that is jointly owned by the province and one or more other provinces and that conducts and manages games of chance in the province, or
(C) a business enterprise, commission, authority or board of another province that conducts and manages games of chance in the province,

(ii) revenues derived by a province from a tax imposed on casino winnings or from any other similar direct or indirect tax that is imposed in relation to the sale of the games described in paragraphs (b) to (e) of the definition “games of chance” in section 3, and
(iii) profits that are derived from the sale of goods and services – including the sale of food, drink, lodging and parking space – that are remitted to a provincial government by a casino that is owned or controlled by a business enterprise, commission, authority or board of the province or another province;

(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 referred to in paragraph (z.4) of that definition,

(i) subject to subsection (2), any other revenues derived by a province that are not included as revenues elsewhere in this subsection, including

(A) those included in the “Sales of goods and services” revenue category of the Government Finance Statistics, other than those described in subparagraphs (c)(ii) and (h)(i),
(B) those derived from natural resources, other than those described in paragraphs (l) to (w) and (z.5),
(C) those derived from fines and penalties imposed by a province,
(D) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations, and
(E) taxes on the sale of liquefied petroleum gas, and

(ii) subject to subsection (2), any other revenues derived by a local government that are not included as revenues elsewhere in this subsection, including

(A) those included in the “Sales of goods and services” revenue category of the Government Finance Statistics,
(B) those derived from fines and penalties imposed by a local government, and
(C) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations; and

(z.5) in the case of the revenues derived from the revenue sources referred to in subparagraphs (z.5)(i), (ii) and (iii) of that definition, respectively,

(i) revenues received by Newfoundland and Labrador from the Government of Canada under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act,
(ii) revenues received by Nova Scotia from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, and
(iii) revenues derived by a province from the province’s share of revenue from any other revenue source referred to in that definition that is shared by the Government of Canada and the province.

(2) The following revenues are excluded from subparagraphs (1)(z.4)(i) and (ii), as applicable:

(a) revenues included in the “Social contributions” category of the Government Finance Statistics;
(b) revenues included in the “Property income revenue” category of the Government Finance Statistics, other than any natural resource royalties or other natural resource revenues described in clause (1)(z.4)(i)(B);
(c) any transfer payments received from other governments;
(d) payments to a province by the Government of Canada under section 99 of the Softwood Lumber Products Export Charge Act, 2006;
(e) revenues derived by the provincial and territorial government sub-sector, the local government sub-sector or the school boards sub-sector from the sale of goods and services to any government sub-sector other than one that is a component of the federal government sector;
(f) taxes, levies or fees imposed by a province on the provincially guaranteed debt of government business enterprises and municipalities and on all outstanding amounts advanced by the province to those enterprises and municipalities; and
(g) personal and commercial auto insurance premiums.

(3) [Repealed, SOR/2013-225, s. 9]

SOR/2008-318, s. 7;
SOR/2013-225, s. 9;
2014, c. 13, s. 117.

Previous Version

Revenue Base

8 (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 National 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, the Nova Scotia Power Finance Corporation and the New Brunswick Electric 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


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,


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


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


is cash and deposits,


is investments and accounts with affiliated entities,


is portfolio investments, excluding Government of Canada treasury bills,


is mortgage or hypothecary loans to non-affiliated entities,


is non-mortgage or non-hypothecary loans to non-affiliated corporations,


is accumulated depreciation,


is capital cost allowance,


is book depreciation for Canada,


is the amount owing to affiliated entities,


is borrowing by non-affiliated entities,


is deferred income tax,


is other liabilities, including minority interests in consolidated subsidiaries,


is total equity, and


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


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,


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,


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,


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,


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,


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,


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,


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,


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


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 183-0006, 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 183-0006, 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 183-0006, 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


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,


is the revenue derived by British Columbia in the fiscal year from hospital and medical care insurance premiums,


is the aggregate, over all provinces, of the amounts determined for 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,


is the revenue derived by Quebec in the fiscal year from hospital and medical care insurance premiums, as set out in the certificate, and


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


is the total wages and salaries excluding supplementary labour income, as determined by Statistics Canada for the purpose of its System of National 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,


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,


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


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 National 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


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,


is 0.5 for British Columbia and 0.7 for all other provinces,


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


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


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 Input-Output Accounts,


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),


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,


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


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,


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,


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


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,


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),


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),


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,


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,

(i) revenues received by Newfoundland and Labrador from the Government of Canada under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, as determined by Statistics Canada,
(ii) revenues received by Nova Scotia from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, as determined by Statistics Canada, and
(iii) the province’s share of revenues from any other revenue source referred to in the definition of revenue source in subsection 3.9(1) of the Act, as determined by Statistics Canada.

(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


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;


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;


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;


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;


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


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


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;


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;


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;


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;


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


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.

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DIVISION 3General

Revenues to Be Equalized

9 (1) The definition revenue to be equalized in subsections 3.5(1) and 3.9(1) of the Act is, in respect of a revenue source for a province for a fiscal year, more particularly defined to

(a) include

(i) revenues of the provincial and territorial government sub-sector, the local government sub-sector and the school boards sub-sector, other than revenues of provincial or municipal housing authorities and revenues of local transit authorities and the Caisse de dépôt et placement du Québec, and
(ii) any grant in lieu of a tax, levy or fee referred to in subsection 4(1) or 7(1) that is paid to a province by the Government of Canada for that fiscal year; and

(b) exclude

(i) revenues of the universities and colleges sub-sector and the health and social service institutions sub-sector,
(ii) any revenue that the province or a local government paid to itself, and
(iii) any revenue that the province receives from a local government or that a local government receives from the province.

(2) In respect of the revenues described in subparagraph 4(1)(a)(ii) and paragraph 7(1)(y), the sum of the amounts referred to in subparagraphs (1)(b)(ii) and (iii) shall be the amount by which the product described in paragraph (a) exceeds the amount described in paragraph (b):

(a) the product of the payroll tax rate imposed by the province in the fiscal year and the sum of the wages and salaries paid in the province in the calendar year that ends in the fiscal year by the provincial and territorial general government sector and by the local general government sector to their employees, as determined by Statistics Canada for the purpose of its System of National Accounts;
(b) the amount of any payroll tax paid by the province’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province, as set out in the certificate.

SOR/2008-318, s. 9;
SOR/2013-225, s. 11.

Previous Version

9.1 (1) In determining the revenues described in paragraphs 4(1)(a) and 7(1)(a) in respect of Manitoba and Ontario for a fiscal year, the Minister shall not reduce those revenues by the amount of any recoveries from those provinces in respect of overpayments of capital gains taxes pursuant to a tax collection agreement.
(2) In determining the revenues described in paragraphs 4(1)(e) and 7(1)(l) to (w) in respect of a province for a fiscal year, the Minister may adjust the amount set out in the certificate by adding or deducting the amount of any expense, subsidy, rebate or tax reduction incurred or granted by the government of that province in relation to that revenue source, if that addition or reduction is necessary to ensure that revenues are calculated consistently for all provinces.

(3) In determining the revenues described in paragraphs 7(1)(a) and (z) in respect of a province for a fiscal year, the Minister may deduct the amount of any refundable income tax credit that the province grants in favour of a taxpayer for the fiscal year in relation to those revenues, as determined by the Minister, up to a maximum equal to the amount of the taxpayer’s tax payable that is included in the revenue for paragraph 7(1)(a) set out in the certificate, from

(a) the amount set out in the certificate for the revenue described in paragraph 7(1)(a); or
(b) if the refundable income tax credit relates to property tax, the amount set out in the certificate for the revenue described in paragraph 7(1)(z).

(4) In determining the revenues described in paragraph 7(1)(c) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the part of that revenue source described in subparagraph 7(1)(c)(ii).
(5) In determining the revenues described in paragraph 7(1)(z.4) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the parts of that revenue source described in clauses 7(1)(z.4)(i)(A) and (ii)(A).

SOR/2013-225, s. 11.

Simulated Yield

10 (1) The following definitions apply in this section.

personal taxes

personal taxes means

(a) taxes imposed by a province on the income of individuals, not including trusts, net of

(i) tax credits that can be simulated for individuals in all provinces on the basis of information available within, or imputable to, the micro-simulation model, and
(ii) in respect of income taxes imposed by Quebec, the refundable Quebec abatement described in paragraph 2500(3)(e) of the Income Tax Regulations; and

(b) if this definition is being applied for the purpose of

(i) clause 5(a)(i)(A), levies or premiums imposed by a province on individuals specifically for the purpose of financing hospital insurance, medical care insurance or drug insurance, other than contributions to the Nova Scotia Seniors’ Pharmacare Program, or
(ii) clause 8(1)(a)(i)(A), the Ontario Health Premium and the Quebec Health Contribution. (impôts des particuliers)

provincial system
provincial system means the set of rules relating to the imposition of personal taxes in a province. (régime provincial)

(2) For the purpose of clauses 5(a)(i)(A) and 8(1)(a)(i)(A), the simulated average revenue yield relating to personal income for the province for a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model by

(a) simulating, in respect of each provincial system in turn, the total amount of personal taxes that would be derived from all individuals in the province in the taxation year if that provincial system applied to those individuals;
(b) simulating, in respect of each provincial system in turn, the total amount of personal taxes that would be derived from all individuals in all provinces in the taxation year if that provincial system applied to those individuals;
(c) dividing the amount simulated in respect of each provincial system under paragraph (a) by the amount simulated in respect of the same provincial system under paragraph (b);

(d) calculating the weight of each province’s provincial system, which shall be equal to a fraction

(i) whose numerator is the revenues referred to in subparagraphs 4(1)(a)(i) and (iii) or paragraph 7(1)(a), as the case may be, for the province, as set out in the certificate for the fiscal year, and
(ii) whose denominator is the aggregate, over all provinces, of the revenues referred to in subparagraph (i);

(e) multiplying each amount calculated under paragraph (c) by the respective weight calculated under paragraph (d); and
(f) calculating the sum of the 10 products calculated under paragraph (e).

SOR/2008-318, s. 10;
SOR/2013-225, s. 12.

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Population

11 For the purposes of Part I of the Act and this Part, the manner in which the Chief Statistician of Canada shall determine the population of a province for a fiscal year is by basing that determination on Statistics Canada’s official estimate of the population of the province on the first day of June of that fiscal year.

Certificate

12 (1) The Chief Statistician of Canada shall, in each fiscal year, prepare and submit a certificate to the Minister on or before December 1 of the fiscal year.

(2) The information set out in the certificate shall

(a) be based on the most recent publication of Statistics Canada — or the most recent information of Statistics Canada if the publication is not available, its contents have been superseded by more recent information or these Regulations require information that is not published — that is available on or before November 22 of the fiscal year in which the certificate is submitted; and

(b) be provided

(i) if the information is required on a fiscal year basis, for the fiscal year in which the certificate is submitted and the three prior fiscal years, or
(ii) if the information is required on a calendar year basis, for the calendar year that ends in the fiscal year in which the certificate is submitted and the three prior calendar years.

(3) The certificate shall set out the following information:

(a) the population of each province as determined by the Chief Statistician of Canada in accordance with section 11;

(b) the information produced by Statistics Canada that is referred to in sections 5 and 8 and used to calculate each revenue base described in those sections, other than

(i) the individualized profits and losses of business enterprises referred to in clauses 5(b)(ii)(B) and 8(1)(b)(ii)(B),
(ii) the assessed market value of residential property referred to in the description of V in paragraphs 5(d) and 8(1)(z), and
(iii) the information needed to calculate the calculated net profits referred to in paragraph 8(1)(v); and

(c) for each province, information from the Government Finance Statistics regarding the revenues described in sections 4 and 7 other than those described in subparagraphs 4(1)(e)(vii) and (viii) and 7(1)(z.5)(i) and (ii).

(4) The Chief Statistician of Canada shall, in the certificate,

(a) if an aggregate of two or more revenue sources is provided in the certificate, inform the Minister of that aggregate; and
(b) if any information required to be set out in the certificate is not available, inform the Minister that the information is missing.

SOR/2008-318, s. 11;
SOR/2013-225, s. 13.

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Calculations and Estimates

13 (1) When calculating a fiscal equalization payment for a fiscal year under sections 3.2 and 3.4 of the Act, the Minister shall use

(a) the information set out in the certificate that is submitted in the fiscal year preceding that for which the calculation is performed; and
(b) in the case of information that is not required to be set out in the certificate, the most recent data from the information source identified in these Regulations that is available as of December 1 of the fiscal year preceding that for which the calculation is performed.

(2) When calculating a fiscal equalization amount for a fiscal year under section 3.72 of the Act, the Minister shall use

(a) the population of each province as set out in the certificate that is submitted

(i) in the fiscal year for which the calculation is performed, in respect of the population for the preceding fiscal year, and
(ii) in the fiscal year prior to that for which the calculation is performed, in respect of the population for the fiscal years that are two and three years prior to that fiscal year;

(b) for the purpose of determining the revenue to be equalized for each revenue source and the revenue base in respect of each revenue source for the fiscal year preceding that for which the calculation is performed,

(i) the information set out in the certificate that is submitted in the fiscal year for which the calculation is performed, and
(ii) in the case of information that is not required to be set out in the certificate, the most recent data from the information source identified in these Regulations that is available as of December 1 of the fiscal year for which the calculation is performed; and

(c) for the purpose of determining the revenue to be equalized for each revenue source and the revenue base in respect of each revenue source for the fiscal years that are two and three years prior to the fiscal year for which the calculation is performed,

(i) the information set out in the certificate that is submitted in the fiscal year preceding that for which the calculation is performed, and
(ii) in the case of information that is not required to be set out in the certificate, the most recent data from the information source identified in these Regulations that is available as of December 1 of the fiscal year preceding that for which the calculation is performed.

SOR/2008-318, s. 12;
SOR/2013-225, s. 14.

Previous Version

14 (1) For each fiscal year, the Minister shall, in December of the preceding fiscal year, make an estimate of the fiscal equalization amount to be calculated under section 3.72 of the Act using

(a) the information set out in the certificate that is submitted in the fiscal year preceding that for which the amount is estimated, and
(b) in the case of information that is not required to be set out in the certificate, the most recent data from the information source identified in these Regulations that is available as of December 1 of the fiscal year preceding that for which the amount is estimated.

(2) The Minister shall inform Nova Scotia’s Minister of Finance of the estimate referred to in subsection (1) on or before December 31 of the fiscal year preceding that for which the estimate is made.

SOR/2008-318, s. 12;
SOR/2013-225, s. 14.

Previous Version

14.1 (1) When determining the revenue to be equalized from a revenue source for a fiscal year for the purpose of making a calculation or estimate referred to in section 13 or 14, the Minister may, if information that is necessary for that determination is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, estimate the revenue to be equalized on the basis of any information that is available to the Minister at the time of the calculation.

(2) When determining a revenue base for the purpose of making a calculation or estimate referred to in section 13 or 14, the Minister may, if information that is necessary for that determination is unavailable or incorrect, estimate the base using the following substitutions:

(a) if, when determining a revenue base referred to in paragraph 5(a) or 8(1)(a) for a fiscal year, information from T1 tax returns that are assessed or reassessed by the Canada Revenue Agency during the last three months of the calendar year that ends in the following fiscal year is not available for the purpose of calculating the simulated average revenue yield relating to personal income for the province for the taxation year that ends in the fiscal year, the Minister may use in place of that yield the product of

(i) the simulated average revenue yield relating to personal income for the province, calculated in accordance with the method set out in subsection 10(2) on the basis of the T1 tax returns assessed or reassessed during the first nine months of the calendar year that ends in the following fiscal year, and

(ii) the average, over the taxation years that end in the three fiscal years immediately preceding the fiscal year, of a fraction

(A) whose numerator is the total federal income tax as determined by the micro-simulation model that is assessed or reassessed for the taxation year for individuals, not including trusts, in the province during the calendar year following that taxation year, and
(B) whose denominator is the total federal income tax as determined by the micro-simulation model that is assessed or reassessed for the taxation year for individuals, not including trusts, in the province during the first nine months of the calendar year following that taxation year;

(b) if, when determining a revenue base referred to in paragraph 5(b) or 8(1)(b) for a fiscal year, information from corporation tax returns that are assessed or reassessed by the Canada Revenue Agency during the last two or three months of the calendar year that ends in the following fiscal year is not available for the purpose of calculating the allocated corporation taxable income attributable to the province for the fiscal year, the Minister may use in place of

(i) the corporations’ taxable income earned in the province for their taxation years ending in the calendar year that ends in the fiscal year in respect of which they are eligible for a deduction under subsection 125(1) of the Income Tax Act, the income in respect of which they are eligible for a deduction as assessed or reassessed by the Canada Revenue Agency during the first nine months of the calendar year that ends in the following fiscal year,
(ii) the corporations’ taxable income earned in the province for their taxation years ending in the calendar year that ends in the fiscal year, the income assessed or reassessed by the Canada Revenue Agency during the first 10 months of the calendar year that ends in the following fiscal year, and
(iii) the capital gains refunds payable to investment corporations and mutual fund corporations that constitute income earned in the province for their taxation years ending in the calendar year that ends in the fiscal year, those refunds that are assessed or reassessed by the Canada Revenue Agency during the first 10 months of the calendar year that ends in the following fiscal year;

(c) if, when determining a revenue base referred to in paragraph 5(c) for a fiscal year, information on taxes on products, other than federal and provincial general sales taxes, is not available from Statistics Canada for the purpose of netting those taxes from household final consumption expenditures, capital expenditures for intellectual property products, capital expenditures for machinery and equipment or capital expenditures for non-residential structures in a province, the Minister may use in place of that information

(i) in respect of household final consumption expenditures, the product, for each household final consumption expenditure category, of those expenditures in the province for the fiscal year, net of federal and provincial general sales taxes, and a fraction

(A) whose numerator is the amount of taxes on products, other than federal and provincial general sales taxes, paid in relation to those expenditures for that category in the province for the most recent fiscal year for which information on those taxes is available from Statistics Canada, and
(B) whose denominator is the expenditures for that category, net of federal and provincial general sales taxes, in the province for that most recent fiscal year, and

(ii) in respect of each type of capital expenditure, the product, for each public or non-profit entity category and for the business sector, of those expenditures in the province for the fiscal year, net of federal and provincial general sales taxes, and a fraction

(A) whose numerator is the amount of taxes on products, other than federal and provincial general sales taxes, paid in relation to that type of capital expenditure by that category or sector in the province for the most recent fiscal year for which information on those taxes is available from Statistics Canada, and
(B) whose denominator is the capital expenditures of that type by that category or sector, net of federal and provincial general sales taxes, in the province for that most recent fiscal year;

(d) if, when determining a revenue base referred to in paragraph 5(c) or 8(1)(d) for a fiscal year, the expenditure and tax information required to calculate G and H for a province for a calendar year is missing from the certificate, the Minister may use in place of G and H, respectively,

(i) the product of G as calculated for that province for the most recent calendar year for which information is provided in the certificate multiplied and a fraction

(A) whose numerator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the information required to calculate G is missing from the certificate, and
(B) whose denominator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the information required to calculate G is provided in the certificate, and

(ii) the product of H as calculated for that province for the most recent calendar year for which information is provided in the certificate multiplied and a fraction

(A) whose numerator is the current dollar provincial gross domestic product at market prices for that province, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the information required to calculate H is missing from the certificate, and
(B) whose denominator is the current dollar provincial gross domestic product at market prices for that province, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the information required to calculate H is provided in the certificate;

(e) if, when determining a revenue base referred to in paragraph 5(d) or 8(1)(z) for a fiscal year, information on the current dollar gross domestic product at factor cost attributable to the industries listed in the description of F in that paragraph in a province for the calendar year that ends in the preceding fiscal year is missing from the certificate, the Minister may use in place of that amount the product of the current dollar gross domestic product at factor cost attributable to those industries in the province for the most recent calendar year for which the information is provided in the certificate and a fraction

(i) whose numerator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the information is missing from the certificate, and
(ii) whose denominator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the information is provided in the certificate;

(f) if information that is necessary for determining a revenue base referred to in paragraph 8(1)(f), (h), (j), (k), (z.1), (z.2) or (z.3) for a fiscal year is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, the Minister may replace the revenue base with the product of

(i) an estimate of the revenue base derived by substituting, in the calculation of the base, information for the most recent fiscal year or calendar year, as the case may be, for which the required information is set out in the certificate or is available from the identified information source, and

(ii) a fraction

(A) whose numerator is one plus a fraction whose numerator is the province’s percentage of the population of all provinces for the fiscal year for which the revenue base is being determined and whose denominator is that percentage for the fiscal year referred to in subparagraph (i) or, if that subparagraph refers to a calendar year, the fiscal year in which that calendar year ends, and
(B) whose denominator is two;

(g) if, when determining a revenue base referred to in paragraph 8(1)(y) for a fiscal year, information on the wages and salaries described in subparagraph (ii) of the description of A in that paragraph for the calendar year that ends in the fiscal year is missing from the certificate, the Minister may use in place of that information the product of the amount determined for that subparagraph for the most recent calendar year for which that information is provided in the certificate and a fraction

(i) whose numerator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the wages and salaries information is missing from the certificate, and
(ii) whose denominator is the provincial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the wages and salaries information is provided in the certificate; and

(h) if, in circumstances other than those described in paragraphs (a) to (g), information that is necessary for determining a revenue base for a fiscal year is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, the Minister may estimate the revenue base by substituting in the relevant calculations the information for the most recent fiscal, calendar or taxation year, as the case may be, that is available in a certificate or from the identified source.

(3) If a revenue base for a fiscal year is estimated in accordance with subsection (2), the Minister may further adjust that estimate to take into account factors or trends that could change the provincial share of that revenue base between the earlier fiscal year from which information was used to estimate the base for the fiscal year and the fiscal year for which the revenue base is estimated.
(4) If the Minister is unable to estimate a revenue base in accordance with subsection (2), the Minister shall make an estimate on the basis of any information that is available to the Minister.
(5) If an aggregate of the revenues of two or more revenue sources is provided in a certificate under paragraph 12(3)(c), the Minister shall determine the portion of the aggregate that is to apply to each of those revenue sources.

SOR/2008-318, s. 12;
SOR/2013-225, s. 14.

Previous Version

14.2 [Repealed, SOR/2013-225, s. 14]
Previous Version

Elections

15 An election made by a province under subsection 3.2(2) of the Act shall be communicated in writing to the Minister on or before March 1 preceding the fiscal year for which the election is being made.

SOR/2008-318, s. 12;
SOR/2013-225, s. 14.

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Payments

16 If the Minister determines under sections 3.2 and 3.4 of the Act that a fiscal equalization payment is to be made to a province for a fiscal year, the Minister shall make the payment to the province in 24 equal instalments, with an instalment being made on each of the first and third working days after the 15th calendar day of each month of the fiscal year.

SOR/2008-318, s. 12;
SOR/2013-225, s. 14.

Previous Version

16.1 [Repealed, SOR/2013-225, s. 14]
Previous Version

16.2 [Repealed, SOR/2013-225, s. 14]
Previous Version

16.3 [Repealed, SOR/2013-225, s. 14]
Previous Version

Recovery of Overpayments

16.4 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

16.5 [Repealed, SOR/2013-225, s. 15]
Previous Version

16.6 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.

Previous Version

16.7 (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.

Previous Version

16.8 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


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;


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;


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


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.

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PART 1.1 Territorial Formula Financing Payments

Interpretation

17 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


is the amount determined by the formula
B - C
where


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


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


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


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;


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


is the amount determined by the formula
E/F
where


is the aggregate, over all provinces and territories, of the amounts determined by the formula
I × (D/J)
where


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,


is the amount determined for D in the first formula in this definition, and


is the aggregate, over all provinces and territories, of the amounts determined for D, and


is the aggregate, over all provinces and territories, of the amounts determined by the formula
K × (A/L)
where


is each province or territory’s general corporate income tax rate for the calendar year that ends in the fiscal year,


has the same meaning as set out above, and


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 means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of non-residential property other than farm property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from the Census of Agriculture and from information regarding property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure inter-jurisdictional comparability. (valeur marchande estimée des propriétés foncières commerciales-industrielles)
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 for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (industrie du secteur des entreprises)
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 National 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 National 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 National 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)
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 expenditures

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

(a) new residential housing, including the land, as determined by Statistics Canada;
(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 commodity
intermediate input commodity means any of the intermediate input commodities as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (intrant intermédiaire)
intermediate input expenditures
intermediate input expenditures means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ 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 means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix:

(a) non-profit institutions serving households,
(b) government education services,
(c) government health services, and
(d) other municipal government services. (industrie d’activité non commerciale)

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 Ontario, Quebec, Manitoba or Newfoundland and Labrador, of tax on the payroll of employers. (régime d’impôt sur la masse salariale)
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)

SOR/2009-327, s. 5;
SOR/2013-225, s. 18.

Previous Version

17.1 For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, a reference to the territories in any of the definitions revenue base, revenue source and revenue to be equalized in that subsection shall be read as including the provinces.

SOR/2009-327, s. 6;
SOR/2013-225, s. 19.

Previous Version

Revenue Source

18 (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the provincial and territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (i) of the definition revenue source in that subsection are

(a) in the case of revenues relating to personal income referred to in paragraph (a) of that definition,

(i) taxes imposed by a province or territory on the income of individuals or unincorporated businesses, including a levy other than a universal pension plan levy, and
(ii) revenues derived from levies or premiums imposed by a province or territory specifically for the purpose of financing hospitalization insurance, medical care insurance or drug insurance, other than contributions to the Nova Scotia Seniors’ Pharmacare Program;

(b) in the case of revenues relating to corporate income and government business enterprises referred to in paragraph (b) of that definition,

(i) taxes imposed by a province or territory on the income of corporations,

(ii) remittances to a provincial or territorial government of profits of business enterprises of the province or territory, other than remittances by

(A) a liquor board, commission or authority of the province or territory,
(B) an enterprise engaged, entirely or primarily, in the marketing of oil or natural gas, and
(C) an enterprise, board, commission or authority engaged in the administration of a provincial or territorial lottery,

(iii) taxes imposed by a province or territory on the paid-up capital of corporations, and
(iv) fines and penalties imposed on businesses by a province, territory or local government;

(c) in the case of revenues derived from tobacco referred to in paragraph (c) of that definition, revenues derived by means of a specific tax imposed by a province or territory on final purchasers of tobacco and tobacco products;
(d) in the case of revenues derived from motive fuel taxes from the sale of gasoline referred to in paragraph (d) of that definition, revenues derived from taxes imposed by a province or territory on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes on the sale of liquefied petroleum gas;
(e) in the case of revenues derived from motive fuel taxes from the sale of diesel fuel referred to in paragraph (e) of that definition, revenues derived from taxes imposed by a province or territory on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes on the sale of liquefied petroleum gas;

(f) in the case of revenues derived from the sale of alcoholic beverages referred to in paragraph (f) of that definition, revenues derived from

(i) remittances to a provincial or territorial government, by a liquor board, commission or authority of the province or territory, of profits arising from sales of alcoholic beverages,
(ii) a specific sales tax imposed by a province or territory on the sale of alcoholic beverages by a liquor board, commission or authority of the province or territory, and
(iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages;

(g) in the case of revenues derived from payroll taxes referred to in paragraph (g) of that definition, taxes imposed by a province or territory on the payroll of employers;

(h) in the case of revenues derived from property taxes and miscellaneous revenues referred to in paragraph (h) of that definition,

(i) taxes imposed by a province, territory or local government on

(A) the owner of real or immovable property,
(B) the occupant of real or immovable property, if the owner is exempt from property taxes on that property, and
(C) a person occupying or using real or immovable property for the purpose of carrying on a business, if the taxes are calculated in relation to that occupation or use by the person,

(ii) grants received by a province, territory or local government from the federal government in lieu of the taxes described in subparagraph (i),
(iii) taxes imposed by a provincial, territorial or local government on the sale price or value of real or immovable property when it is transferred,

(iv) subject to subsection (2), any other revenues derived by a province or territory that are not included as revenues elsewhere in this subsection, including

(A) those derived from fines and penalties imposed by the province or territory, other than those imposed on businesses, and
(B) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities”, “Other taxes on goods and services n.e.c”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c” revenue categories of the Government Finance Statistics, including those received for gaming licences or permits issued to charities or other organizations, but excluding agricultural insurance premiums,

(v) subject to subsection (2), any other revenues derived by a local government that are not included as revenues elsewhere in this subsection, including

(A) those derived from fines and penalties imposed by a local government, other than those imposed on businesses, and
(B) those that are included in the “Other taxes on use of goods and on permission to use goods or perform activities,” “Other taxes on goods and services n.e.c.”, “Other taxes”, “Voluntary transfers other than grants” and “Miscellaneous and unidentified revenue n.e.c.” revenue categories of the Government Finance Statistics, including those received for gaming licences and permits issued to charities or other organizations, and

(vi) territorial quarry revenues that are not included as resource revenues under the Yukon Northern Affairs Program Devolution Transfer Agreement and territorial forestry revenues that are not included as resource revenues under the Northwest Territories Lands and Resources Devolution Agreement; and

(i) in the case of revenues relating to consumption taxes, excluding revenues derived from excise taxes, referred to in paragraph (i) of that definition,

(i) sales taxes — including those on meals, hotel services, telecommunications and cable television, and amusement taxes — that are not described elsewhere in this subsection and that are imposed by a province, territory or local government on final purchasers or on users of goods and services,
(ii) amounts paid to a province or territory in accordance with a sales tax harmonization agreement,
(iii) revenues derived from taxes on the sale of liquefied petroleum gas,

(iv) revenues derived by a province or territory from fees for

(A) driver’s and chauffeur’s licences, and
(B) licences for, and registrations of, personal motor vehicles,

(v) revenues derived by a province or territory from fees for licences for, and registrations of, commercial motor vehicles, including

(A) fees for licences for, and registrations of, trucks, buses, trailers, tractors and passenger vehicles used for commercial purposes,
(B) public service and common carrier fees, and
(C) revenues derived under reciprocity agreements with other provinces or territories in respect of the licensing and registration of commercial motor vehicles,

(vi) taxes imposed by a province or territory on insurance premiums,
(vii) taxes imposed by a province or territory on amounts wagered in the province or territory on harness and running horse races,

(viii) profits derived from the operation of games of chance that are remitted to a provincial or territorial government by

(A) a business enterprise, commission, authority or board of the province or territory that manages games of chance in the province or territory,
(B) a business enterprise, commission, authority or board that is jointly owned by the province or territory and one or more other provinces or territories and that manages games of chance in the province or territory, or
(C) a business enterprise, commission, authority or board of another province or territory that manages games of chance in the province or territory,

(ix) revenues derived by a province or territory from a tax imposed on casino winnings or from any other similar direct or indirect tax that is imposed in relation to the operation or sale of games of chance,
(x) profits, other than those referred to in clause 18(1)(b)(ii)(C), that are derived from the sale of goods or services — including the sale of food, drink, lodging and parking space — and that are remitted to a provincial or territorial government by a casino that is owned or controlled by a province or territory or by a business enterprise, commission, authority or board of the province or territory,
(xi) the province or territory’s share of revenue from any revenue that is shared by Canada and the province or territory, and
(xii) a carbon levy or tax imposed by a province or territory, including a tax on fuel that is proportional to the greenhouse gas emissions that are generated by the burning of fuel, and revenues raised from auctioning carbon allowances, credits or permits under an emissions trading system.

(2) The following revenues are excluded from subparagraphs (1)(h)(iv) and (v), as applicable:

(a) revenues included in the “Sales of goods and services” revenue category of the Government Finance Statistics;
(b) revenues included in the “Social contributions” category of the Government Finance Statistics;
(c) revenues included in the “Property income revenue” category of the Government Finance Statistics;
(d) any transfer payments received from other governments;
(e) payments to a province by the Government of Canada under section 99 of the Softwood Lumber Products Export Charge Act, 2006;
(f) personal and commercial auto insurance premiums; and
(g) agricultural insurance premiums.

SOR/2008-318, s. 13;
SOR/2013-225, s. 20.

Previous Version

Revenue Base

19 (1) The definition revenue base in subsection 4(1) of the Act is, for all purposes in respect of a revenue source for a territory for a fiscal year and for the purpose of calculating the national average rate of tax as defined in that subsection in respect of a revenue source for a province for a fiscal year, more particularly defined to mean

(a) in the case of revenues relating to personal income, referred to in paragraph 18(1)(a), the sum of

(i) a fraction, expressed as a percentage,

(A) whose numerator is the simulated average revenue yield relating to provincial or territorial personal income for the province or territory for the taxation year that ends in the fiscal year, as determined in accordance with subsection 21(2), and
(B) whose denominator is the aggregate, over all provinces and territories, of the amounts referred to in clause (A), and

(ii) the amount by which the percentage in clause (B) exceeds that in clause (A):

(A) a fraction, expressed as a percentage,

(I) whose numerator is the aggregate, over all individuals — not including trusts — in the province or territory, 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 all provinces and territories, of the amount referred to in subclause (I),

(B) a fraction, expressed as a percentage,

(I) whose numerator is the aggregate, over all individuals — including trusts — in the province or territory, 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 all provinces and territories, of the amount referred to in subclause (I);

(b) in the case of the revenues relating to corporate income and government business enterprises, referred to in paragraph 18(1)(b), the sum 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 provinces or territories for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of National Accounts, and a fraction

(A) whose numerator is the allocated corporation taxable income attributable to the province or territory for the fiscal year, and
(B) whose denominator is the aggregate, over all provinces and territories, of the amounts 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 and territories, of the total profits, before the distribution of dividends, that are attributable to each province or territory 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 territory, or by that province or territory and one or more other provinces or territories, excluding the profits of

(I) a liquor board, commission or authority,
(II) an enterprise engaged, entirely or primarily, in the marketing of oil or natural gas,
(III) an enterprise engaged in the administration of a provincial or territorial lottery, and
(IV) the Ontario Electricity Financial Corporation, the Nova Scotia Power Finance Corporation and the New Brunswick Electric 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 or territory 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 and territories, of those numerators;

(c) in the case of revenues derived from tobacco, referred to in paragraph 18(1)(c), the number of cigarettes sold to final purchasers in the province or territory in the fiscal year, as determined by dividing the revenue derived from tobacco taxes by the province or territory in the fiscal year, as set out in the certificate, by the average annual tax levy per cigarette that applies in that province or territory for that fiscal year;

(d) in the case of revenues derived from motive fuel taxes derived from the sale of gasoline, referred to in paragraph 18(1)(d), the sum of

(i) the average tax rate in the calendar year that ends in the fiscal year multiplied by the adjusted number of litres of gasoline taxed at road-use rate in the province or territory in that year,
(ii) the average tax rate in the calendar year that ends in the fiscal year multiplied by the number of litres of aviation fuel sold in the province or territory 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 average tax rate in the calendar year that ends in the fiscal year multiplied by the number of litres of gasoline sold for use by farm trucks in the province or territory in that year;

(e) in the case of revenues derived from motive fuel taxes derived from the sale of diesel fuel, referred to in paragraph 18(1)(e), the sum of

(i) the average tax rate in the calendar year that ends in the fiscal year multiplied by the adjusted number of litres of diesel fuel taxed at road-use rate in the province or territory in that year,

(ii) the average tax rate in the calendar year that ends in the fiscal year multiplied by the number of litres of railway fuel sold in the province or territory in that year as determined,

(A) in the case where railway fuel is taxed in the province or territory 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 average tax rate in the calendar year that ends in the fiscal year multiplied by the number of litres of diesel fuel sold for use by farm trucks in the province or territory in that year;

(f) in the case of revenues derived from the sale of alcoholic beverages, referred to in paragraph 18(1)(f), the sum of

(i) the revenue derived by all provinces and territories from the sale of spirits in the fiscal year, as determined by the Minister on the basis of information provided by the provinces, the territories and Statistics Canada, multiplied by a fraction whose numerator is the volume of spirits sold in the province or territory in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0006, 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 and territories, of those numerators,
(ii) the revenue derived by all provinces and territories from the sale of wine in the fiscal year, as determined by the Minister on the basis of information provided by the provinces, the territories and Statistics Canada, multiplied by a fraction whose numerator is the volume of wine sold in the province or territory in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0006, 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 and territories, of those numerators, and
(iii) the revenue derived by all provinces and territories from the sale of beer in the fiscal year, as determined by the Minister on the basis of information provided by the provinces, the territories and Statistics Canada, multiplied by a fraction whose numerator is the volume of beer sold in the province or territory in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM table 183-0006, 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 and territories, of those numerators;

(g) in the case of revenues derived from payroll taxes, referred to in paragraph 18(1)(g), the aggregate, over the four payroll tax systems, of the amount determined for each system by the formula

A × (B/C)
where


is the amount determined by the formula
(D/E) × (F/G) + H
where


is the estimated amount of payroll taxes that would be imposed on the employers in the province or territory under the payroll tax system for the calendar year that ends in the fiscal year as if the tax system applied to the employers in the province or territory, calculated on the basis of
(i) the statutory rates, thresholds and exemptions applicable under the tax system as of June 1 of the fiscal year, and
(ii) data on the gross payroll of employers in the province or territory — other than those referred to in subparagraphs (i) and (ii) of the description of G — 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,


is the statutory tax rate applicable or, if there is more than one tax rate, the rate that would apply to payrolls in excess of the highest threshold, under the payroll tax system as of June 1 of the fiscal year, and


is the total wages and salaries excluding supplementary labour income, as determined by Statistics Canada for the purpose of its System of National Accounts, paid in the province or territory 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,


is the gross dollar value, before deductions, of the payrolls of all employers in the province or territory 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, and


is military pay and allowances, excluding supplementary labour income, paid in the province or territory in the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of National Accounts,


is the total revenue derived from the payroll tax system for the fiscal year, and


is the aggregate, over all provinces and territories, of the amounts calculated for A;

(h) in the case of revenues derived from property taxes and miscellaneous revenues, referred to in paragraph 18(1)(h), the weighted sum of three sub-bases, determined by the formula

(B1 × 0.575) + (B2 × 0.410) + (B3 × 0.015)
where

B1 
is the market value residential sub-base, determined by the formula
[(R × 1/R1) × 0.7] + [(P × 1/P1) × 0.3]
where


is the assessed market value of residential property in the province or territory for the calendar year that ends in the fiscal year,

R1 
is the aggregate, over all provinces and territories, of the amounts determined for R,


is the population of the province or territory for the fiscal year, as determined in accordance with paragraph 27(a), and

P1 
is the aggregate, over all provinces and territories, of the amounts determined for P,

B2 
is the market value commercial-industrial sub-base as determined by the formula
[(N × 1/N1) × 0.7] + [(P × 1/P1) × 0.3]
where


is the assessed market value of commercial-industrial property in the province or territory for the calendar year that ends in the fiscal year,

N1 
is the aggregate, over all provinces and territories, of the amounts determined for N,


is the population of the province or territory for the fiscal year, as determined in accordance with paragraph 27(a), and

P1 
is the aggregate, over all provinces and territories, of the amounts determined for P, and

B3 
is the farm sub-base as determined by the formula
F × 1/F1
where


is the value of farm land and buildings in a province or territory, measured in current dollars, as determined by Statistics Canada for the purpose of its publication entitled Census of Agriculture, and adjusted to exclude farm residences, for the most recent calendar year available in the publication, and

F1 
is the aggregate, over all provinces and territories, of the amounts determined for F; and

(i) in the case of revenues relating to consumption taxes, as described in paragraph 18(1)(i), 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


is the aggregate, over all household final consumption expenditure categories, of the household final consumption expenditures in the province or territory for each category multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures for that category in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures for that category in all of those provinces and territories,


is the aggregate, over all housing expenditure categories, of the housing expenditures in the province or territory for each category multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures for that category in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures for that category in all of those provinces and territories,


is the capital expenditures for machinery and equipment by the business sector in the province or territory multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that sector in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces and territories,


is the capital expenditures for non-residential structures by the business sector in the province or territory multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that sector in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces and territories,


is the aggregate, over all public or non-profit entity categories, of the capital expenditures for machinery and equipment in the province or territory by each category multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that category in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces and territories,


is the aggregate, over all public or non-profit entity categories, of the capital expenditures for non-residential structures in the province or territory by each category multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that category in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces and territories,


is the aggregate, over all non-business sector industries and all intermediate input commodities, of the intermediate input expenditures in the province or territory for each commodity by each industry multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures for that commodity by that industry in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures for that commodity by that industry in all of those provinces and territories,


is the aggregate, over all business sector industries and all intermediate input commodities, of the intermediate input expenditures in the province or territory for each commodity by each industry multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures for that commodity by that industry in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures for that commodity by that industry in all of those provinces and territories,


is the capital expenditures for intellectual property products by the business sector in the province or territory multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that sector in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that sector in all of those provinces and territories, and


is the aggregate, over all public or non-profit entity categories, of the capital expenditures for intellectual property products in the province or territory by each category multiplied by a fraction whose numerator is the total net provincial and territorial sales tax revenues derived from those expenditures by that category in all provinces and territories that levy a general sales tax and whose denominator is the total of those expenditures by that category in all of those provinces and territories.

(2) For the purpose of paragraph 19(1)(e), if a territory has changed its method of accounting for a fiscal year so that the revenue referred to in that paragraph is derived during a period that is other than 12 months, the Minister may adjust the amount of that revenue for that fiscal year to offset any effect of that change.

SOR/2013-225, s. 21.
Previous Version

General

Revenues to Be Equalized

20 (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the definition revenue to be equalized in that subsection is, in respect of a revenue source for a province or territory for a fiscal year, more particularly defined to

(a) include

(i) revenues of the provincial and territorial government sub-sector, the local government sub-sector and the school boards sub-sector, other than revenues of provincial, territorial or municipal housing authorities and revenues of local transit authorities and the Caisse de dépôt et placement du Québec, and
(ii) any grant in lieu of a tax, levy or fee referred to in subsection 18(1) that is paid to a province or territory by the Government of Canada for that fiscal year; and

(b) exclude

(i) revenues of the universities and colleges sub-sector and the health and social service institutions sub-sector,
(ii) any revenue that the province or territory receives from a local government or any revenue that a local government receives from the province or territory,
(iii) any revenue that the province or territory or a local government in the province or territory paid to itself,
(iv) 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 Yukon,
(v) revenues, fees or tax bases referred to in any of clauses 7.30 to 7.34 of the Yukon Northern Affairs Program Devolution Transfer Agreement,
(vi) revenues that are Resource Revenues derived from Onshore lands, as those terms are defined in the Canada Yukon Oil and Gas Accord, and
(vii) Resource Revenues as defined in the Northwest Territories Lands and Resources Devolution Agreement.

(2) In respect of the revenues described in paragraph 18(1)(g), the sum of the amounts referred to in subparagraphs (1)(b)(ii) and (iii) shall be the amount by which the product described in paragraph (a) exceeds the amount described in paragraph (b):

(a) the product of the payroll tax rate imposed by the province or territory in the fiscal year and the sum of the wages and salaries paid in the province or territory in the calendar year that ends in the fiscal year by the provincial and territorial general government sector and by the local general government sector to their employees, as determined by Statistics Canada for the purpose of its System of National Accounts;
(b) the amount of any payroll tax paid by the province or territory’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province or territory, as set out in the certificate.

SOR/2013-225, s. 22.
Previous Version

Simulated Yield

21 (1) The following definitions apply in this section.

personal taxes

personal taxes means

(a) taxes imposed by a province or territory on the income of individuals, not including trusts, net of

(i) tax credits that can be simulated for individuals in all provinces and territories on the basis of information available within, or imputable to, the micro-simulation model, and
(ii) in respect of income taxes imposed by Quebec, the refundable Quebec abatement described in paragraph 2500(3)(e) of the Income Tax Regulations; and

(b) levies or premiums imposed by a province or territory on individuals specifically for the purpose of financing hospital insurance, medical care insurance or drug insurance, other than contributions to the Nova Scotia Seniors’ Pharmacare Program. (impôts des particuliers)

provincial or territorial system
provincial or territorial system means the set of rules relating to the imposition of personal taxes in a province or territory. (régime provincial ou territorial)

(2) For the purpose of clause 19(1)(a)(i)(A), the simulated average revenue yield relating to provincial or territorial personal income for the province or territory for a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model by

(a) simulating, in respect of each provincial or territorial system in turn, the total amount of personal taxes that would be derived from all individuals in the province or territory in the taxation year if that provincial or territorial system applied to those individuals;
(b) simulating, in respect of each provincial or territorial system in turn, the total amount of personal taxes that would be derived from all individuals in all provinces and territories in the taxation year if that provincial or territorial system applied to those individuals;
(c) dividing the amount simulated in respect of each provincial or territorial system under paragraph (a) by the amount simulated in respect of the same provincial or territorial system under paragraph (b);

(d) calculating the weight of each province or territory’s provincial or territorial system, which shall be equal to a fraction

(i) whose numerator is the revenues referred to in paragraph 18(1)(a) for the province or territory, as set out in the certificate for the fiscal year, and
(ii) whose denominator is the aggregate, over all provinces and territories, of the revenues referred to in subparagraph (i);

(e) multiplying each amount calculated under paragraph (c) by the respective weight calculated under paragraph (d); and
(f) calculating the sum of the 13 products calculated under paragraph (e).

SOR/2008-318, s. 14;
SOR/2013-225, s. 22.

Previous Version

Gross Expenditure Base

Population Adjusted Gross Expenditure Escalator

Calculation Accuracy

22 Every calculation used to determine the population adjusted gross expenditure escalator shall be made to five decimal places.

Population Adjustment Factor

23 (1) The population adjustment factor, defined in subsection 4(1) of the Act, for the fiscal year for which the territorial formula financing payment may be made is more particularly defined to be equal to the ratio

1 + A : 1 + B
where


is the three-year moving average of the rate of change of the population of the territory; and


is the three-year moving average of the rate of change of the population of Canada.

(2) For the purpose of subsection (1), the three-year moving average is determined by the formula

[(P4/P5 - 1) + (P3/P4 - 1) + (P2/P3 - 1)] /3
where

P2 
is the population of the territory or Canada, as the case may be, two fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;

P3 
is the population of the territory or Canada, as the case may be, three fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;

P4 
is the population of the territory or Canada, as the case may be, four fiscal years prior to the fiscal year for which the territorial formula financing payment may be made; and

P5 
is the population of the territory or Canada, as the case may be, five fiscal years prior to the fiscal year for which the territorial formula financing payment may be made.

Provincial Local Government Expenditure Index

24 (1) The provincial local government expenditure index, defined in subsection 4(1) of the Act, is more particularly defined to be the amount determined by the formula

1 + {[(P4/P5 - 1) + (P3/P4 - 1) + (P2/P3 - 1)] / 3}
where

P2 
is the amount of the provincial local government expenditures two fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;

P3 
is the amount of the provincial local government expenditures three fiscal years prior to the fiscal year for which the territorial formula financing payment may be made;

P4 
is the amount of the provincial local government expenditures four fiscal years prior to the fiscal year for which the territorial formula financing payment may be made; and

P5 
is the amount of the provincial local government expenditures five fiscal years prior to the fiscal year for which the territorial formula financing payment may be made.

(2) For the purpose of subsection (1), the provincial local government expenditures for a fiscal year shall be calculated on a non-seasonally adjusted basis and be based on the data from Statistics Canada’s publication entitled National Income and Expenditure Accounts – Quarterly Estimates that is available to the Minister at the time of the calculation referred to in section 4.3 of the Act. The expenditures shall be equal to the sum of

(a) the expenses of the provincial and territorial general government sector, as determined by the formula

A - B - C - D + E
where


is the gross outlay,


is the total of net capital transfers,


is the total of transfers to local governments,


is the total of capital consumption allowances, and


is the total investment in fixed capital, and

(b) the expenses of the local general government sector, as determined by the formula

F - G - H - I + J
where


is the gross outlay,


is the total of net capital transfers,


is the total of transfers to provincial and territorial governments,


is the total of capital consumption allowances, and


is the total investment in fixed capital.

SOR/2013-225, s. 23.
Previous Version

Adjustment

25 (1) If, following the conclusion of a personal income tax room sharing agreement between the Government of Yukon and a specified Yukon aboriginal government, the Minister determines, under subparagraph 4.2(a)(iii) of the Act, that the gross expenditure base of Yukon is to be adjusted by the amount determined by the following formula, the adjustment shall be applied on a non-cumulative basis for each of the second, third and fourth fiscal years following that in which the agreement was concluded:

A - (70% × B)
where


is equal to the amount of tax, determined in accordance with the agreement, that is foregone by the Government of Yukon for the taxation year that is two years prior to the fiscal year for which the territorial formula financing payment for Yukon is being calculated, and


is the average difference — for the taxation years that are two, three and four years prior to the fiscal year for which the territorial formula financing payment for Yukon is being calculated — between the yield for Yukon revenues derived from personal income, net of federal and Yukon territorial personal income tax assessed in respect of Yukon residents, when it is calculated
(a) without taking into account the specified Yukon aboriginal government’s federal tax abatement and territorial tax credit, and
(b) taking into account that abatement and that credit.

(2) Only the adjustment made in the fourth fiscal year is subject to escalation under the population adjusted gross expenditure escalator.

SOR/2009-327, s. 7.
Previous Version

Recalculation

26 For the purpose of recalculating the gross expenditure base under subsection 4(2) of the Act, the prescribed information is the population information set out in the certificate in accordance with paragraph 28(3)(b), but it does not include the information for a fiscal year prior to fiscal year 2003–2004.

Population

27 The manner in which the Chief Statistician of Canada shall determine the population of a province or territory for a fiscal year is by basing that determination on Statistics Canada’s official estimate of that population on

(a) the first day of June of that fiscal year, for the purpose of paragraph 19(1)(h) and clause 30(2)(c)(ii)(A); and
(b) the first day of July of that fiscal year, for the purpose of any other provision of this Part.

SOR/2008-318, s. 15(E);
SOR/2013-225, s. 24.

Previous Version

Certificate

28 (1) The Chief Statistician of Canada shall, in each fiscal year, prepare and submit a certificate to the Minister on or before December 1 of the fiscal year.

(2) The information set out in the certificate shall

(a) be based on the most recent publication of Statistics Canada — or the most recent information of Statistics Canada if the publication is not available, its contents have been superseded by more recent information or these Regulations require information that is not published — that is available on or before November 22 of the fiscal year in which the certificate is submitted; and

(b) be provided

(i) if the information is required on a fiscal year basis, for the fiscal year in which the certificate is submitted and the three prior fiscal years, or
(ii) if the information is required on a calendar year basis, for the calendar year that ends in the fiscal year in which the certificate is submitted and the three prior calendar years.

(3) The certificate shall set out the following information:

(a) the population of all provinces and territories as determined by the Chief Statistician of Canada in accordance with paragraph 27(1)(a);
(b) the population of all provinces and territories, including that for the seven prior fiscal years if the fiscal year is one in which Statistics Canada releases Census population results, as determined by the Chief Statistician of Canada in accordance with paragraph 27(1)(b);

(c) the information produced by Statistics Canada that is referred to in section 19 and used to calculate each revenue base described in that section, other than

(i) the individualized profits and losses of business enterprises referred to in clause 19(1)(b)(ii)(B),
(ii) the assessed market value of residential property referred to in the description of R in paragraph 19(1)(h), and
(iii) the assessed market value of commercial-industrial property referred to in the description of N in paragraph 19(1)(h);

(d) for each province and territory, information from the Government Finance Statistics regarding the revenues described in section 18 other than those described in subparagraph 18(1)(h)(vi); and
(e) the information respecting the provincial local government expenditures referred to in subsection 24(1).

(4) The Chief Statistician of Canada shall, in the certificate,

(a) if an aggregate of two or more revenue sources is provided in the certificate, inform the Minister of that aggregate; and
(b) if any information required to be set out in the certificate is not available, inform the Minister that the information is missing.

SOR/2008-318, s. 16;
SOR/2009-327, s. 8;
SOR/2013-225, s. 25.

Previous Version

Calculation

29 When calculating a territorial formula financing payment for a fiscal year under section 4.1 of the Act, the Minister shall use

(a) the information set out in the certificate that is submitted in the fiscal year preceding that for which the calculation is performed; and
(b) in the case of information that is not required to be set out in the certificate, the most recent data from the information source identified in these Regulations that is available as of December 1 of the fiscal year preceding that for which the calculation is performed.

SOR/2008-318, s. 17;
SOR/2013-225, s. 26.

Previous Version

30 (1) When determining the revenue to be equalized from a revenue source for a fiscal year for the purpose of making a calculation referred to in section 29, the Minister may, if information that is necessary for that determination is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, estimate the revenue to be equalized on the basis of any information that is available to the Minister at the time of the calculation.

(2) When determining a revenue base for the purpose of making a calculation referred to in section 29, the Minister may, if information that is necessary for that determination is unavailable or incorrect, estimate the base using the following substitutions:

(a) if, when determining a revenue base referred to in paragraph 19(1)(a) for a fiscal year, information from T1 tax returns that are assessed or reassessed by the Canada Revenue Agency during the last three months of the calendar year that ends in the following fiscal year is not available for the purpose of calculating the simulated average revenue yield relating to personal income for the province or territory for the taxation year that ends in the fiscal year, the Minister may use in place of that yield the product of

(i) the simulated average revenue yield relating to personal income for the province or territory that is calculated in accordance with the method set out in subsection 21(2) on the basis of the T1 tax returns assessed or reassessed during the first nine months of the calendar year that ends in the following fiscal year, and

(ii) the average, over the taxation years that end in the three fiscal years immediately preceding the fiscal year, of a fraction

(A) whose numerator is the total federal income tax as determined by the micro-simulation model that is assessed or reassessed for the taxation year for individuals, not including trusts, in the province or territory during the calendar year following that taxation year, and
(B) whose denominator is the total federal income tax as determined by the micro-simulation model that is assessed or reassessed for the taxation year for individuals, not including trusts, in the province or territory during the first nine months of the calendar year following that taxation year;

(b) if, when determining a revenue base referred to in paragraph 19(1)(b) for a fiscal year, information from corporation tax returns that are assessed or reassessed by the Canada Revenue Agency during the last two or three months of the calendar year that ends in the following fiscal year is not available for the purpose of calculating the allocated corporation taxable income attributable to a province or territory for the fiscal year, the Minister may use in place of

(i) the corporations’ taxable income earned in the province or territory for their taxation years ending in the calendar year that ends in the fiscal year in respect of which they are eligible for a deduction under subsection 125(1) of the Income Tax Act, the income in respect of which they are eligible for a deduction as assessed or reassessed by the Canada Revenue Agency during the first nine months of the calendar year that ends in the following fiscal year,
(ii) the corporations’ taxable income earned in the province or territory for their taxation years ending in the calendar year that ends in the fiscal year, the income assessed or reassessed by the Canada Revenue Agency during the first 10 months of the calendar year that ends in the following fiscal year, and
(iii) the capital gains refunds payable to investment corporations and mutual fund corporations that constitute income earned in the province or territory for their taxation years ending in the calendar year that ends in the fiscal year, those refunds that are assessed or reassessed by the Canada Revenue Agency during the first 10 months of the calendar year that ends in the following fiscal year;

(c) if information that is necessary for determining a revenue base referred to in paragraph 19(1)(d) or (f) for a fiscal year is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, the Minister may replace the revenue base with the product of

(i) an estimate of the revenue base derived by substituting, in the calculation of the base, information for the most recent fiscal year or calendar year, as the case may be, for which the required information is set out in the certificate or is available from the identified information source, and

(ii) a fraction

(A) whose numerator is one plus a fraction whose numerator is the province or territory’s percentage of the population of all provinces and territories for the fiscal year for which the revenue base is being determined and whose denominator is that percentage for the fiscal year referred to in subparagraph (i) or, if that subparagraph refers to a calendar year, the fiscal year in which that calendar year ends, and
(B) whose denominator is two;

(d) if, when determining a revenue base referred to in paragraph 19(1)(g) for a fiscal year, information on the wages and salaries described in subparagraph (ii) of the description of F in that paragraph for the calendar year that ends in the fiscal year is missing from the certificate, the Minister may use in place of that information the product of the amount determined for that subparagraph for the most recent calendar year for which the information is provided in the certificate and a fraction

(i) whose numerator is the provincial or territorial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the wages and salaries information is missing from the certificate, and
(ii) whose denominator is the provincial or territorial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the wages and salaries information is provided in the certificate;

(e) if, when determining a revenue base referred to in paragraph 19(1)(i) for a fiscal year, the expenditure and tax information required to calculate G and H for a province or territory for a calendar year is missing from the certificate, the Minister may use in place of G and H, respectively,

(i) the product of G as calculated for that province or territory for the most recent calendar year for which information is provided in the certificate multiplied and a fraction

(A) whose numerator is the provincial or territorial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the information required to calculate G is missing from the certificate, and
(B) whose denominator is the provincial or territorial government’s current expenditures, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the information required to calculate G is provided in the certificate, and

(ii) the product of H as calculated for that province or territory for the most recent calendar year for which information is provided in the certificate and a fraction

(A) whose numerator is the current dollar provincial or territorial gross domestic product at market prices for that province or territory, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the calendar year for which the information required to calculate H is missing from the certificate, and
(B) whose denominator is the current dollar provincial or territorial gross domestic product at market prices for that province or territory, as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts for the most recent calendar year for which the information required to calculate H is provided in the certificate;

(f) if, when determining a revenue base referred to in paragraph 19(1)(i) for a fiscal year, information on taxes on products, other than federal, provincial and territorial general sales taxes, is not available from Statistics Canada for the purpose of netting those taxes from household final consumption expenditures, capital expenditures for intellectual property products, capital expenditures for machinery and equipment or capital expenditures for non-residential structures in a province or territory, the Minister may use in place of that information

(i) in respect of household final consumption expenditures, the product, for each household final consumption expenditure category, of those expenditures in the province or territory for the fiscal year, net of federal, provincial and territorial general sales taxes, and a fraction

(A) whose numerator is the amount of taxes on products, other than federal, provincial and territorial general sales taxes, paid in relation to those expenditures for that category in the province or territory for the most recent fiscal year for which information on those taxes is available from Statistics Canada, and
(B) whose denominator is the expenditures for that category, net of federal, provincial and territorial general sales taxes, in the province or territory for that most recent fiscal year, and

(ii) in respect of each type of capital expenditure, the product, for each public or non-profit entity category and for the business sector, of those expenditures in the province or territory for the fiscal year, net of federal, provincial and territorial general sales taxes, and a fraction

(A) whose numerator is the amount of taxes on products, other than federal, provincial and territorial general sales taxes, paid in relation to that type of capital expenditure by that category or sector in the province or territory for the most recent fiscal year for which information on those taxes is available from Statistics Canada, and
(B) whose denominator is the capital expenditures of that type by that category or sector, net of federal, provincial and territorial general sales taxes, in the province or territory for that most recent fiscal year; and

(g) if, in circumstances other than those described in paragraphs (a) to (f), information that is necessary for determining a revenue base for a fiscal year is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, the Minister may estimate the revenue base by substituting in the relevant calculations the information for the most recent fiscal, calendar, or taxation year, as the case may be, that is available in a certificate or from the identified source.

(3) If a revenue base for a fiscal year is estimated in accordance with subsection (2), the Minister may further adjust that estimate to take into account factors or trends that could change the provincial or territorial share of that revenue base between the earlier fiscal year from which information was used to estimate the base for the fiscal year and the fiscal year for which the revenue base is estimated.
(4) If the Minister is unable to estimate a revenue base in accordance with subsection (2), the Minister shall make an estimate on the basis of any information that is available to the Minister.
(5) If an aggregate of the revenues of two or more revenue sources is provided on a certificate under paragraph 28(3)(d), the Minister shall determine the portion of the aggregate that is to apply to each of those revenue sources.

SOR/2008-318, s. 17;
SOR/2013-225, s. 27.

Previous Version

Payments

31 If the Minister determines that a territorial formula financing payment is to be made under the Act to a territory for a fiscal year, the Minister shall

(a) on the first working day in each of the first two months of the fiscal year, pay the territory 16% of the payment; and
(b) on the first working day of each following month, pay the territory 10% of the remaining amount of the payment.

SOR/2013-225, s. 28.
Previous Version

PART 2 Fiscal Stabilization Payments

32 An application referred to in subsection 6(7) of the Act shall be signed by the province’s Minister of Finance or Treasurer and contain the following information:

(a) a statement that indicates the province’s total revenues for the fiscal year and for the immediately preceding fiscal year from personal income taxes as referred to in paragraph 7(1)(a) and the portion of those revenues for each of those fiscal years that is received under a tax collection agreement with the Government of Canada;
(b) a statement that indicates the total amount of the provincial personal income taxes assessed or reassessed for each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial personal income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial personal income taxes;
(c) a statement that indicates the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from that portion of the revenue source referred to in paragraph 7(1)(b) that consist of revenues from corporation income taxes and revenues derived from government business enterprises as described in that paragraph and the portion of those revenues for each of those fiscal years that is received under a tax collection agreement with the Government of Canada;
(d) a statement that indicates the total amount of the provincial corporation income taxes assessed or reassessed for each of the taxation years ending in the fiscal year and in the immediately preceding fiscal year, and the total amount of tax credits and rebates claimed by taxpayers in the province against provincial corporation income taxes for each of those taxation years that have been deducted from those assessed or reassessed provincial corporation income taxes;
(e) a statement of the total revenues of the province for the fiscal year and for the immediately preceding fiscal year from each of the revenue sources described in paragraphs 7(1)(c) to (y), (z.1) to (z.3) and (z.5);
(f) a statement that provides a further breakdown of the revenues from any of the revenue sources referred to in paragraphs (a) to (e) into component taxes, fees, levies, premiums or royalties if there was a change in the rates or structures at which those component taxes, fees, levies, premiums or royalties were levied during the fiscal year or during that part of the immediately preceding fiscal year after its first day;
(g) a statement that describes any change in the rates or structures at which a provincial tax, fee, levy, premium or royalty was levied during the fiscal year or during that part of the immediately preceding fiscal year after its first day and that indicates the effective date of the change;
(h) a statement that estimates the change in revenues in the fiscal year from the immediately preceding fiscal year from each of the changes described in the statement referred to in paragraph (g); and
(i) a statement that describes any change in the accounting practices in the public accounts of the province from those of the immediately preceding fiscal year.

33 (1) The Minister shall make the adjustment for a fiscal year referred to in subsection 6(2) of the Act by

(a) adding, to the amount that would otherwise be determined, the decrease in the province’s revenues in the fiscal year that results from changes in the rates, or structures, of provincial taxes or other modes of raising the revenue of the province, including

(i) the termination of an existing tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal year,
(ii) a decrease, averaged over a year, in the rate of a tax, fee, levy, premium or royalty,
(iii) a change in the base to which the rate of a tax, levy, premium or royalty is applied and that results in a decrease in revenues, averaged over a year, derived from that base,
(iv) a change in the classification of taxpayers that results in a decrease in revenues, if the rate of a tax, fee, levy, premium or royalty varies according to an attribute of taxpayers, including the nature of their activity, the form of their business organization, the kind of ownership interest in their business or their age,
(v) an increase in deductions, credits or allowances, averaged over a year, that a taxpayer may claim in determining the amount of the tax, or the base to which the taxpayer’s tax rate is to be applied,
(vi) the adding, broadening or enlarging of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) an increase in rebates, averaged over a year, for a tax, fee, levy, premium or royalty,
(viii) a decrease, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) a decrease in the proportion of the profits remitted to the provincial government by its own enterprises, or
(x) a decrease in the charges for the rental or use of government property, including water power rentals; and

(b) subtracting, from the amount that would otherwise be determined, the increase in the province’s revenues in the fiscal year that results from changes in the rates, or structures, of provincial taxes or other modes of raising the revenue of the province, including

(i) the introduction of a new tax, fee, levy, premium or royalty during the fiscal year or during the immediately preceding fiscal year,
(ii) an increase, averaged over a year, in the rate of a tax, fee, levy, premium or royalty,
(iii) a change in the base to which the rate of a tax, levy, premium or royalty is applied and that results in a increase in revenues, averaged over a year, derived from that base,
(iv) a change in the classification of taxpayers that results in a increase in revenues, if the rate of a tax, fee, levy, premium or royalty varies according to an attribute of taxpayers, including the nature of their activity, the form of their business organization, the kind of ownership interest in their business or their age,
(v) a decrease in deductions, credits or allowances, averaged over a year, that a taxpayer may claim in determining the amount of the tax, or the base to which the taxpayer’s tax rate is to be applied,
(vi) the removal, narrowing or restricting, of exemptions, averaged over a year, from a tax, fee, levy, premium or royalty,
(vii) a decrease in rebates, averaged over a year, for a tax, fee, levy, premium or royalty,
(viii) an increase, averaged over a year, in the mark-up on goods or services that are sold to the public by the province or its agencies,
(ix) an increase in the proportion of the profits remitted to the provincial government by its own enterprises, or
(x) an increase in the charges for the rental or use of government property, including water power rentals.

(2) For the purpose of subsection (1), a change that results from an indexation provision that has the effect of periodically changing the rate or structure of a tax, or other mode of raising the province’s revenue, as a consequence of a change in the level of prices in the economy as a whole or in the actual or deemed price of goods or services to which it applies, shall be considered to be a change in the rate or in the structure of that tax or other mode.

SOR/2013-225, s. 29.
Previous Version

34 (1) For the purpose of this Part, the total revenue derived by a province for a fiscal year from the revenue sources set out in subsection 7(1) is,

(a) in the case of personal income taxes for a province that has entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under paragraph 6(5)(a) of the Act on the basis of the information that is available to the Minister for the administration of that tax collection agreement;
(b) in the case of the part of the revenue source set out in paragraph 7(1)(b) that is related to corporation income taxes for a province that has entered into a tax collection agreement with the Government of Canada under Part III of the Act, the amount determined under paragraph 6(5)(c) of the Act on the basis of the information that is available to the Minister for the administration of that tax collection agreement; and
(c) in the case of any other revenue source, or any other part of a revenue source, the amount that the Minister determines on the basis of information that the province provides to the Minister in its application, as adjusted by the Minister, if necessary, and information that is contained in the certificate referred to in section 12.

(2) In computing the revenue derived by a province from a revenue source for a fiscal year, other than from the revenue sources referred to in paragraphs 7(1)(a) and (b), the Minister may deduct from that revenue source the amounts referred to in paragraphs 9(5)(a) and (b), without taking into account the reference to subsection 3.5(1) of the Act in paragraph 9(5)(b).

(3) For the purpose of this Part, in computing the revenue derived by a province from a revenue source, the Minister may make any adjustment that is necessary to take into account

(a) any change between the accounting practices used in the public accounts of the province in a fiscal year for which an application for a fiscal stabilization payment has been received and those used in the province in the immediately preceding fiscal year; or
(b) any change between the methodology of Statistics Canada used for reporting revenue derived by a province from a revenue source in a fiscal year for which an application for a fiscal stabilization payment has been received and that used in the immediately preceding fiscal year.

SOR/2013-225, s. 30.
Previous Version

35 A province may make an application signed by its Minister of Finance or Treasurer for the payment of advances on account of fiscal stabilization payments for a fiscal year that may become payable to the province. The application shall be

(a) based on information on revenues that relate to the first five months or more of the fiscal year; and
(b) supported by the comparative revenue information that is available to the province for the period referred to in paragraph (a) and for the corresponding period of the previous fiscal year, including information that relates to any changes in the revenue that is subject to stabilization that results from changes either in the rates or in the structures of provincial taxes or other modes of raising the revenue of the province from those that were in effect during the immediately preceding fiscal year.

36 (1) The Minister may, after receiving from a province a completed application referred to in section 32 or 35 for a fiscal year, make one or more estimates of any amount that may become payable to that province in respect of fiscal stabilization for that fiscal year.
(2) If the Minister estimates that a fiscal stabilization payment is to be paid to the province, the Minister may make one or more advance payments to the province on account of that payment, but the cumulative total of those advances shall not be more than the limit referred to in subsection 6(8) of the Act.

SOR/2013-225, s. 31.
Previous Version

37 (1) An amount lent to a province under subsection 6(9) of the Act is repayable or recoverable in 60 equal monthly instalments, the first of which becomes due and payable 30 days after the day on which the amount is lent.
(2) Despite anything in this Part, if an amount is lent to a province before the last day of February of the fiscal year for which an application has been received, that amount shall be repayable or recoverable in equal monthly instalments on the first and third working days after the 15th calendar day of each month of the fiscal year throughout the period beginning on the April that immediately follows the lending of that amount and ending five years after the day on which that amount was lent.

38 (1) The Minister shall make a final computation of any fiscal stabilization payment that may be paid to a province under section 6 of the Act for a fiscal year within 32 months after the end of the fiscal year for which an application under that section is made and shall provide the province with a statement that describes the manner in which that computation was made.
(2) If the amount of the final computation of the fiscal stabilization payment to be paid is more than the total amount of advance payments made under subsection 36(2), the Minister shall, subject to the limit set out in subsection 6(8) of the Act, pay the difference between those amounts to the province.

39 Subject to sections 37 and 41, the Minister may, in whole or in part, deduct the amount of an overpayment made in relation to a fiscal stabilization payment made to a province from any amount that is payable to that province under the Act. Any amount of the overpayment that is not deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.

40 (1) If the Minister determines that an amount lent to a province under subsection 6(9) of the Act is more than the difference between the fiscal stabilization payment calculated under subsections 6(1) to (6) of the Act and the limit for that payment determined in accordance with subsection 6(8) of the Act, the amount of the difference shall be deducted from any amount payable to the province under the Act. Any amount of that difference that is not deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.
(2) An amount that is repaid by, or recovered from, the province under section 37 before the deduction or recovery referred to in subsection (1) reduces the balance that would otherwise have been determined to be outstanding on a loan to a province made under subsection 6(9) of the Act.
(3) On making a deduction or recovery referred to in subsection (1), each monthly instalment that otherwise would be due and payable under section 37 is reduced to the quotient that results from dividing the difference between the balance referred to in subsection (2) and the amount of the deduction or recovery by the number of instalments remaining to be paid.

PART 3 Recovery of Net Overpayments

41 (1) The Minister shall, for each province in relation to each fiscal year in the period beginning on April 1, 2007 and ending on March 31, 2019, calculate the net aggregate of overpayments to be recovered from that province by adding

(a) the net total of all underpayments and overpayments in relation to the following payments made under the Act or a tax collection agreement concluded under the Act, that are shown in that fiscal year to have been made in relation to each previous year within the period beginning on April 1, 1994 and ending on March 31, 2018:

(i) fiscal equalization payments, other than additional fiscal equalization payments made under section 3.71 of the Act,
(ii) fiscal stabilization payments, and
(iii) income tax payments under tax collection agreements; and

(b) the amount of any overpayment that is shown in that fiscal year to have been made in relation to that fiscal year of fiscal equalization payments, fiscal stabilization payments and income tax payments under tax collection agreements.

(2) On the request of a province, the Minister shall not, during a fiscal year, recover any amount of the net aggregate of overpayments that is more than $140 per capita.
(3) If, after subtracting the amount recovered from the province in the fiscal year in respect of the net aggregate of overpayments, there remains an outstanding balance for the net aggregate of overpayments, that balance shall be deferred until the following fiscal year and be taken into account when calculating the net total referred to in paragraph (1)(a) for that following fiscal year.
(4) Despite subsection (2), if any portion of the deferred outstanding balance remains outstanding at the end of the second fiscal year following the fiscal year in which the recovery of that net aggregate of overpayments was first subject to the amounts set out in subsection (2), it shall be recovered during the fiscal year that immediately follows that second fiscal year.

SOR/2008-318, s. 18;
SOR/2013-225, s. 32.

Previous Version

42 The prescribed amounts referred to in section 3.95 of the Act are equal monthly amounts required to repay the payment referred to in that section over the period beginning on April 1, 2007 and ending on March 31, 2016.

PART 4 Consequential Amendment, Repeals and Coming into Force

Consequential Amendment

43 [Amendment]

Repeals

44 [Repeals]

Coming into Force

45 These Regulations come into force on the day on which they are registered.