Marginal note:R.S., c. 46 (4th Supp.), s. 5(1); 1999, c. 11, s. 4; 1999, c. 31, s. 236

63. Part IV of the Act is repealed.

Marginal note:2003, c. 15, s. 8

64. Subsection 24.1(2) of the Act is replaced by the following:

Marginal note:2003, c. 15, s. 8

65. The description of M in section 24.2 of the Act is replaced by the following:

66. The Act is amended by adding the following after section 24.2:

Marginal note:2003, c. 15, s. 8

67. Paragraph 24.3(1)(c) of the Act is replaced by the following:

Marginal note:2003, c. 15, s. 8

• 68. (1) Paragraph 24.4(1)(a) of the Act is amended by striking out the word “and” at the end of subparagraph (iv) and by replac- ing subparagraph (v) with the following:

  • (v) $9.487 billion for the fiscal year beginning on April 1, 2007,

  • (vi) $10.537 billion for the fiscal year beginning on April 1, 2008, and

  • (vii) the product obtained by multiplying the cash contribution for the immediately preceding fiscal year by 1.03, rounded to the nearest thousand, for each fiscal year in the period beginning on April 1, 2009 and ending on March 31, 2014.

• Marginal note:2003, c. 15, s. 8

  (2) Subsection 24.4(2) of the Act is replaced by the following:

  • Meaning of “total equalized tax transfer”

    (2) In subsection (1), “total equalized tax transfer” means the total equalized tax transfer as determined in accordance with section 24.7.

Marginal note:2003, c. 15, s. 8

• 69. (1) The portion of section 24.5 of the Act before the description of K is replaced by the following:

  Marginal note:Provincial share: fiscal year 2006-2007 and earlier

  24.5 The cash contribution established under any of subparagraphs 24.4(1)(a)(i) to (iv) that may be provided to a province for the fiscal year mentioned in that subparagraph is the amount determined by the formula

  F × (K/L) - M

  where

  F

  is the total of the amounts established under subparagraphs 24.4(1)(a)(i) to (iv) and paragraph 24.4(1)(b) for the fiscal year;

• Marginal note:2003, c. 15, s. 8

  (2) The description of M in section 24.5 of the Act is replaced by the following:

  M

  is the amount obtained by multiplying the total equalized tax transfer for the province as determined in accordance with section 24.7 by the quotient, rounded to the nearest hundredth, that is obtained by dividing an amount equal to the cash contribution specified in subparagraph 24.4(1)(a)(i) by an amount equal to the aggregate of the cash contributions specified in subparagraphs 24.1(1)(a)(i) and 24.4(1)(a)(i).

70. The Act is amended by adding the following after section 24.5:

Marginal note:2003, c. 15, s. 8

• 71. (1) The portion of subsection 24.7(1) of the Act before paragraph (a) is replaced by the following:

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

  • 24.7 (1) The total equalized tax transfer applicable to a province for each fiscal year in the period beginning on April 1, 2004 and ending on March 31, 2007 is the aggregate of

• Marginal note:2005, c. 7, s. 4(1)

  (2) The portion of subparagraph 24.7(1)(b)(ii) of the Act before clause (A) is replaced by the following:

  • (ii) the amount of equalization that would be paid to the province in respect of the federal income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, if the method of calculation of fiscal equalization payments as set out in Part I, excluding subsection 4(6) of this Act, as that Part read on May 13, 2004, were to be applied to the value of the income tax reduction in all the provinces in respect of the Canada Health Transfer and the Canada Social Transfer for the fiscal year, except that

• Marginal note:2005, c. 7, s. 4(2)

  (3) Paragraph 24.7(1.1)(a) of the Act is replaced by the following:

  • (a) for each fiscal year in the period beginning on April 1, 2005 and ending on March 31, 2007, the equalization payment shall be the equalization payment that would be payable to the province for the fiscal year under Part I, as that Part read on March 28, 2007; and

• Marginal note:2005, c. 7, s. 4(2)

  (4) Subparagraph 24.7(1.1)(b)(i) of the Act is replaced by the following:

  • (i) in the case of a province that receives an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the estimate that was made by the Minister on February 23, 2004 in respect of the fiscal year in accordance with section 8 of the Federal-Provincial Fiscal Arrangements Regulations, 1999, and

• Marginal note:2003, c. 15, s. 4(2)

  (5) Subparagraph 24.7(1.1)(b)(ii) of the English version of the Act is replaced by the following:

  • (ii) in the case of a province that does not receive an additional fiscal equalization payment under subsection 4(3), as it read on March 28, 2007, the final computation in respect of the fiscal year.

• (6) Section 24.7 of the Act is amended by adding the following after subsection (1.1):

  • Marginal note:Total equalized tax transfer — fiscal year 2007-2008 and later

    (1.2) The total equalized tax transfer applica- ble to a province for each fiscal year beginning after March 31, 2007 is the aggregate of

    • (a) the total amount, as determined by the Minister, for that fiscal year represented by the federal income tax reduction in that province in respect of the Canada Health Transfer and the Canada Social Transfer for that fiscal year, and

    • (b) the amount equal to the lesser of

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

      • (ii)  an amount of equalization equal to the greater of

        • (A)  the product obtained by multiplying

          • (I)  the aggregate of the amounts obtained by subtracting, for each revenue source referred to in paragraphs (a) and (b) of the definition “revenue source” in subsection 3.5(1), the per capita yield for that province for that fiscal year from the per capita national yield for that fiscal year

          by

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

        • (B)  zero.

  • Marginal note:Revenue sources

    (1.3) For the purposes of the calculation under subparagraph (1.2)(b)(ii), the relevant revenue bases, per capita yield and per capita national yield are to be determined in the prescribed manner.

• Marginal note:2003, c. 15, s. 8

  (7) The portion of subsection 24.7(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Federal income tax reduction

    (2) For the purposes of subsections (1) and (1.2), the amount represented by the federal income tax reduction in a province in respect of the Canada Health Transfer and the Canada Social Transfer for a fiscal year is an amount equal to the aggregate of

72. The Act is amended by adding the following after section 24.7: