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

Act current to 2021-02-15 and last amended on 2015-06-19. Previous Versions

Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

S.C. 2005, c. 30, s. 85

Assented to 2005-06-29

An Act respecting additional fiscal equalization offset payments for Nova Scotia and Newfoundland and Labrador relating to revenues from offshore petroleum resources

[Enacted by section 85 of chapter 30 of the Statutes of Canada, 2005, in force on assent June 29, 2005.]

Short Title

Marginal note:Short title

 This Act may be cited as the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act.

Interpretation

Marginal note:Definitions

 The following definitions apply in this Act.

Canada–New­foundland and Labrador Arrangement

Canada–New­foundland and Labrador Arrangement means the Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues signed on February 14, 2005. (Entente Canada – Terre-Neuve-et- Labrador)

Canada–Nova Scotia Arrangement

Canada–Nova Scotia Arrangement means the Arrangement between the Government of Canada and the Government of Nova Scotia on Offshore Revenues signed on February 14, 2005. (Entente Canada – Nouvelle-Écosse)

Minister

Minister means the Minister of Finance. (ministre)

Purpose

Marginal note:Purpose of the Act

 The purpose of this Act is to implement the Canada–Newfoundland and Labrador Arrangement and the Canada–Nova Scotia Arrangement.

PART 1Additional Fiscal Equalization Offset Payments for Nova Scotia

Marginal note:Definitions

 The following definitions apply in this Part.

additional fiscal equalization offset payment

additional fiscal equalization offset payment means the payment that may be made under section 6, 7 or 12. (paiement de péréquation compensatoire supplémentaire)

fiscal equalization offset payment

fiscal equalization offset payment[Repealed, 2015, c. 4, s. 110]

fiscal equalization payment

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. (paiement de péréquation)
offshore revenue

offshore revenue in respect of any fiscal year means the aggregate of the following amounts paid to the Province for that fiscal year:

  • (a) amounts paid under paragraph 219(2)(b) of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act;

  • (b) amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Nova Scotia offshore area, within the meaning of subsection 123(1) of that Act; and

  • (c) amounts paid with respect to tax that would be payable under Part III of the Income Tax Act (Nova Scotia), R.S.N.S. 1989, c. 217, as amended from time to time, on taxable capital of a corporation employed in the offshore area within the meaning of section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act if that area were in the land portion of the Province, unless those amounts have been included in paragraph (a). (recettes extracôtières)

petroleum

petroleum has the same meaning as in section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act. (hydro­carbures)

Province

Province means the Province of Nova Scotia. (Version anglaise seulement)

  • 2005, c. 30, s. 85 “4”
  • 2007, c. 29, s. 81
  • 2015, c. 4, s. 110

Marginal note:Payment of $830 million

 The Minister shall make a payment to the Province in the amount of $830 million, to allow the Province to reduce its outstanding debt.

Marginal note:Additional fiscal equalization offset payment of $30.5 million

  •  (1) For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $30.5 million.

  • Marginal note:Additional fiscal equalization offset payment of $26.6 million

    (2) For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $26.6 million.

Marginal note:Additional fiscal equalization offset payments for the 2006-2012 period

 For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 8.

Marginal note:Calculation of payments

 The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formula

A – B

where

A
is the fiscal equalization payment that may be made to the Province for the fiscal year under the equalization formula in effect at that time, calculated as if the Province did not have any offshore revenue or petroleum production; and
B
is the fiscal equalization payment that may be made to the Province for that fiscal year under the equalization formula in effect at that time.
  • 2005, c. 30, s. 85 “8”
  • 2015, c. 4, s. 111

Marginal note:Restriction

 Despite any other provision of this Act, no payment shall be made under sections 6 to 8 except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $830 million.

Marginal note:Restriction

 For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 7 if it does not receive a fiscal equalization payment for that fiscal year.

 [Repealed, 2015, c. 4, s. 112]

Marginal note:Additional fiscal equalization offset payments for the 2012-2020 period

  •  (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 8 if

    • (a) the Province qualified for a fiscal equalization payment in the 2010-2011 or 2011-2012 fiscal year;

    • (b) the Province’s per capita net debt as of March 31, 2012 was not lower than that of at least four other provinces; and

    • (c) the Province receives a fiscal equalization payment for that fiscal year.

  • Marginal note:Determination of per capita net debt

    (2) For the purpose of paragraph (1)(b), “per capita net debt” for a province as of March 31, 2012 means the amount determined by the Minister in accordance with the regulations.

Marginal note:Restriction

 For greater certainty, if the Province does not meet the conditions set out in paragraphs 12(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 12 for any of the fiscal years between April 1, 2012 and March 31, 2020.

Marginal note:Transitional payments for the 2012-2020 period

  •  (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.

  • Marginal note:Transitional payments for the 2012-2020 period

    (2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.

 
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