This Web page has been archived on the Web.

Budget Implementation Act, 2007 (S.C. 2007, c. 29)

Full Document:

HTMLFull Document: Budget Implementation Act, 2007 (Accessibility Buttons available) |
PDFFull Document: Budget Implementation Act, 2007 [611 KB]

Assented to 2007-06-22

PART 6R.S., c. F-8; 1995, c. 17, s. 45(1)FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Amendments to Act

73. Section 40 of the Act is amended by adding the following before paragraph (b):

(a) respecting the determination of amounts that are to be computed under Part I or I.1;
(a.1) respecting the information that must be prepared and submitted by the Chief Statistician of Canada for the purposes of Parts I and I.1;
(a.2) providing for the provincial or territo- rial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsections 3.5(1) and 4(1);
(a.3) providing for the provincial revenues that constitute, or are deemed to constitute, the revenues referred to in each paragraph of the definition “revenue source” in subsection 4(2) of this Act as it read on March 13, 2004;
(a.4) defining, for the purposes of sections 3.6 to 3.9, the expressions “national average rate of tax”, “revenue base” and “revenue to be equalized”;

74. The Act is amended by adding the following after section 40:

Softwood Lumber Products Export Charge Act, 2006

Marginal note:Recovery

40.1 (1) Despite any other provision of this Act, if, in any fiscal year, the costs referred to in paragraphs 99(1)(a) and (b) of the Softwood Lumber Products Export Charge Act, 2006 exceed the revenues, less any refunds, derived by Her Majesty in right of Canada from the charges imposed under sections 10 and 15 of that Act, then the amount of that excess may be recovered from any payments payable to provinces under this Act.
Marginal note:Restriction
(2) Despite subsection (1), the amount that may be recovered under that subsection with respect to a province for a fiscal year shall not exceed the difference between the aggregate of the amounts paid to that province under section 99 of the Softwood Lumber Products Export Charge Act, 2006 in prior fiscal years and the aggregate of the amounts that have been previously recovered under this section with respect to that province for those prior fiscal years.

Transitional Provisions

Marginal note:Amounts paid before coming into force (Part I)

75. For the fiscal year beginning on April 1, 2007, the fiscal equalization payment that may be paid to a province under Part I of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of fiscal equalization payments paid to that province for that fiscal year before the day on which this Act receives royal assent.

Marginal note:Amounts paid before coming into force (Part I.1)

76. For the fiscal year beginning on April 1, 2007, the territorial formula financing payment that may be paid to a territory under Part I.1 of the Federal-Provincial Fiscal Arrangements Act, as enacted by section 62 of this Act, shall be adjusted by deducting all the amounts of the territorial formula financing payments paid to that territory for that fiscal year before the day on which this Act receives royal assent.

Marginal note:Amounts paid before coming into force (Part V.1)

77. For the fiscal year beginning on April 1, 2007, the Canada Health Transfer and Canada Social Transfer payments that may be paid to a province under Part V.1 of the Federal-Provincial Fiscal Arrangements Act, as amended by sections 64 to 72 of this Act, shall be adjusted by deducting all of the Canada Health Transfer and Canada Social Transfer payments paid to that province for that fiscal year before the day on which this Act receives royal assent.

Consequential Amendments

1987, c. 3Canada-Newfoundland Atlantic Accord Implementation Act

Marginal note:2004, c. 22, s. 6

78. Section 220 of the Canada-Newfoundland Atlantic Accord Implementation Act is replaced by the following:

Marginal note:Calculation

220. The fiscal equalization offset payment that is to be paid to Her Majesty in right of the Province for a fiscal year pursuant to section 219 is the amount, as determined by the Federal Minister, equal to the aggregate of

(a) the amount, if any, by which
- (i) the fiscal equalization payment that would be received by Her Majesty in right of the Province for the fiscal year if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act,
is less than
- (ii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 95 per cent,
- (iii) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is less than or equal to 75 per cent but greater than 70 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 90 per cent, or
- (iv) where the average of the per capita fiscal capacity of the Province for the fiscal years taken into account in the calculation of the fiscal equalization payment for that fiscal year is greater than 75 per cent of the average, for those fiscal years, of the national average per capita fiscal capacity, 85 per cent
of the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accord- ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with this paragraph for the fiscal year immediately preceding the fiscal year, and
(b) the phase-out portion, in respect of the fiscal year, of the amount, as determined by the Federal Minister, by which
- (i) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year immediately preceding the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year immediately preceding the fiscal year
is greater than
- (ii) the aggregate of the fiscal equalization payment that would be received by Her Majesty in right of the Province if the amount of that payment were determined in accordance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act, for the fiscal year and the amount computed in accordance with paragraph (a) for the fiscal year.

79. The Act is amended by adding the following after section 220:

Definition of “average”

220.1 For the purposes of section 220, “average”, except within the expression “national average per capita fiscal capacity”, means a weighted average where the most recent fiscal year that is taken into account in the calculation of the fiscal equalization payment shall be weighted at 50% and each of the other two fiscal years that are taken into account in the calculation of the fiscal equalization payment shall be weighted at 25%.

80. Subsection 222(1) of the Act is replaced by the following:

Marginal note:Final determination

222. (1) The final determination, for any fiscal year, of the fiscal equalization offset payment for the Province, the per capita fiscal capacity for the Province and the national average per capita fiscal capacity shall be determined by the Federal Minister at the same time that the final computation of the amount, if any, of the fiscal equalization payment that is payable to a province is made for the fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

2005, c. 30, s. 85Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

81. The definition “fiscal equalization payment” in section 4 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act is replaced by the following:

“fiscal equalization payment” « paiement de péréquation »

“fiscal equalization payment” means

(a) for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and
(b) for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula
A + B + (C / F)
where
A,
B, C and F have the same meaning as in the definition “total per capita fiscal capacity” in subsection 3.5(1) of that Act.

82. The definition “fiscal equalization payment” in section 18 of the Act is replaced by the following: