Federal-Provincial Fiscal Arrangements Act

Marginal note:Interpretation

• 3.5 (1) The following definitions apply in this section and in sections 3 to 3.4.

  average annual per capita national revenue to be equalized

  revenu national annuel moyen sujet à péréquation par habitant

  average annual per capita national revenue to be equalized means, for a fiscal year for a revenue source, the amount determined by the formula

  (A/2 + B/4 + C/4) / D

  where

  A

  is the national revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;

  B

  is the national revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;

  C

  is the national revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and

  D

  is the aggregate of the average annual population of all provinces for that fiscal year.

  average annual per capita national yield

  rendement national annuel moyen par habitant

  average annual per capita national yield means, for a revenue source for a fiscal year, the amount determined by the formula

  (A/2 + B/4 + C/4) / D

  where

  A

  is the national yield for that revenue source for the fiscal year that is two years prior to that fiscal year;

  B

  is the national yield for that revenue source for the fiscal year that is three years prior to that fiscal year;

  C

  is the national yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and

  D

  is the aggregate of the average annual population of all provinces for that fiscal year.

  average annual per capita revenue to be equalized

  revenu annuel moyen sujet à péréquation par habitant

  average annual per capita revenue to be equalized means, in respect of a province for a revenue source for a fiscal year, the amount determined by the formula

  (A/2 + B/4 + C/4) / D

  where

  A

  is the revenue to be equalized for that revenue source for the fiscal year that is two years prior to that fiscal year;

  B

  is the revenue to be equalized for that revenue source for the fiscal year that is three years prior to that fiscal year;

  C

  is the revenue to be equalized for that revenue source for the fiscal year that is four years prior to that fiscal year; and

  D

  is the average annual population of that province for that fiscal year.

  average annual per capita yield

  rendement annuel moyen par habitant

  average annual per capita yield means, in respect of a province for a revenue source for a fiscal year, an amount determined by the formula

  (A/2 + B/4 + C/4) / D

  where

  A

  is the yield for that revenue source for the fiscal year that is two years prior to that fiscal year;

  B

  is the yield for that revenue source for the fiscal year that is three years prior to that fiscal year;

  C

  is the yield for that revenue source for the fiscal year that is four years prior to that fiscal year; and

  D

  is the average annual population of that province for that fiscal year.

  average annual population

  population annuelle moyenne

  average annual population means, in respect of a province for a fiscal year, the amount determined by the formula

  A/2 + B/4 + C/4

  where

  A

  is the population of that province for the fiscal year that is two years prior to that fiscal year;

  B

  is the population of that province for the fiscal year that is three years prior to that fiscal year; and

  C

  is the population of that province for the fiscal year that is four years prior to that fiscal year.

  national average rate of tax

  taux d’imposition national moyen

  national average rate of tax means, in respect of a revenue source, the rate equal to the quotient obtained by dividing the aggregate of the revenue to be equalized for a revenue source for a fiscal year for all provinces by the revenue base in respect of that revenue source for that fiscal year for all provinces. (taux d’imposition national moyen)

  national revenue to be equalized

  revenu national sujet à péréquation

  national revenue to be equalized means, in respect of a revenue source for a fiscal year, the amount equal to the aggregate of the revenue to be equalized for that revenue source for that fiscal year for all provinces. (revenu national sujet à péréquation)

  national yield

  rendement national

  national yield means, for a revenue source for a fiscal year, the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by the aggregate revenue base of all provinces in respect of that revenue source for that fiscal year. (rendement national)

  revenue base

  assiette

  revenue base means, in respect of a revenue source for a province for a fiscal year, the measure of the relative capacity of that province to derive revenue from that revenue source for that fiscal year and may be defined more particularly by the regulations. (assiette)

  revenue source

  source de revenu

  revenue source means any of the following sources from which provincial revenues are or may be derived:

  • (a) revenues relating to personal income;

  • (b) revenues relating to business income;

  • (c) revenues relating to consumption;

  • (d) revenues derived from property taxes and miscellaneous revenues; and

  • (e) revenues derived from natural resources. (source de revenu)

  revenue to be equalized

  revenu sujet à péréquation

  revenue to be equalized means, in respect of a revenue source for a province for a fiscal year, the revenue, as determined by the Minister, derived by that province for that fiscal year from that revenue source and may be defined more particularly by the regulations. (revenu sujet à péréquation)

  total per capita fiscal capacity

  capacité fiscale totale par habitant

  total per capita fiscal capacity means, in respect of a province for a fiscal year, the amount determined by the formula

  A + B + [(C + D + E) / F]

  where

  A

  is the aggregate of that province’s average annual per capita yield for each revenue source, except the one referred to in paragraph (e) of the definition revenue source, for that fiscal year;

  B

  is that province’s average annual per capita revenue to be equalized, for the revenue source referred to in paragraph (e) of the definition revenue source, for that fiscal year;

  C

  is any fiscal equalization payment that may be paid to that province for that fiscal year if the amount of that payment were determined in accordance with section 3.2 — or, in the case of British Columbia, sections 3.2 and 3.3 — without regard to section 3.4;

  D

  is, with respect to Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year under the Canada-Newfoundland Atlantic Accord Implementation Act;

  E

  is, with respect to Nova Scotia or Newfoundland and Labrador, any amount that may be paid to that province for that fiscal year in accordance with sections 7, 8, 10 to 14, 21, 22, and 24 to 28 of the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act; and

  F

  is the average annual population of that province for that fiscal year.

  yield

  rendement

  yield means, in respect of a province for a revenue source for a fiscal year, an amount equal to the product obtained by multiplying the national average rate of tax for that revenue source for that fiscal year by that province’s revenue base for that revenue source for that fiscal year. (rendement)

• Marginal note:Deduction in computing revenue to be equalized

  (2) In computing the revenue to be equalized from the revenue source described in paragraph (a) of the definition revenue source in subsection (1) for all the provinces for a fiscal year, the Minister may deduct from the amount that, but for this subsection, would be the revenue to be equalized from that revenue source for all the provinces for that fiscal year, the amount, as estimated by the Minister, by which the revenues derived by Canada under the Income Tax Act from personal income taxes for the taxation year ending in that fiscal year are less than the revenues that would have been derived by Canada under that Act from those taxes if no special abatement of those taxes had been provided under subsection 120(2) of that Act or Part VI of this Act.

• Marginal note:Municipal property taxes and miscellaneous revenues and taxes

  (3) For the purpose of determining the revenue to be equalized derived by a province for a fiscal year, in the case of the part of the revenue source referred to in paragraph (d) of the definition revenue source in subsection (1) that consists of local government property taxes and revenues from sales of goods and services and miscellaneous local government taxes and revenues, the aggregate of the revenue derived from that part of the revenue source by each municipality, board, commission or other local authority in that province that has power to derive those revenues for the financial year of each such local authority ending in that fiscal year is deemed to be revenue derived by that province from that revenue source for that fiscal year.