Interpretation

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

  Act

  Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)

  CANSIM table

  CANSIM table means a table published by Statistics Canada and that is a part of its socio-economic database. (tableau CANSIM)

  federal government sector

  federal government sector means that component of the public sector as defined by Statistics Canada for the purposes of the Financial Management System. (secteur de l’administration fédérale)

  Financial Management System

  Financial Management System means the Financial Management System used by Statistics Canada. (système de gestion financière)

  fiscal arrangements period

  fiscal arrangements period means the period beginning on April 1, 2007 and ending on March 31, 2014. (période des accords fiscaux)

  health and social service institutions sub-sector

  health and social service institutions sub-sector means that component of the provincial and territorial government sector as defined by Statistics Canada for the purposes of the Financial Management System. (sous-secteur des institutions de services de santé et de services sociaux)

  local general government sub-sector

  local general government sub-sector means that component of the local government sector as defined by Statistics Canada for the purposes of the Financial Management System. (sous-secteur des administrations locales générales)

  local government sector

  local government sector means that component of the public sector as defined by Statistics Canada for the purposes of the Financial Management System. (secteur des administrations 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 sub-sector

  provincial and territorial general government sub-sector means that component of the provincial and territorial government sector as defined by Statistics Canada for the purposes of the Financial Management System. (sous-secteur des administrations provinciales et territoriales générales)

  provincial and territorial government sector

  provincial and territorial government sector means that component of the public sector as defined by Statistics Canada for the purposes of the Financial Management System. (secteur des administrations provinciales et territoriales)

  publication

  publication means an official printed or electronic release of information. (publication)

  school boards sub-sector

  school boards sub-sector means that component of the local government sector as defined by Statistics Canada for the purposes of the Financial Management System. (sous-secteur des conseils et des commissions scolaires)

  taxation year

  taxation year means a taxation year as defined in the Income Tax Act. (année d’imposition)

  university and college sub-sector

  university and college sub-sector means that component of the provincial and territorial government sector as defined by Statistics Canada for the purposes of the Financial Management System. (sous-secteur des universités et des collèges)

  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 to a publication of Statistics Canada by a specific title includes a reference to any other publication of Statistics Canada that is published in lieu of or in substitution for it.

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, 2008.

• (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, 2006.

PART 1Fiscal 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 and to a taxation year of a corporation other than a non-resident-owned investment corporation, as defined in subsection 133(8) of the Income Tax Act, or a corporation that is a prescribed federal Crown corporation for the purpose of section 27 of that Act and is an agent of Her Majesty – the aggregate, computed on or before the last day of the 12th month of the calendar year following the calendar year in which the taxation year ends, of

• (a) the product of

  • (i) the aggregate, over corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income from earlier taxation years that has not been included in its taxable income for those earlier years, and

  • (ii) a fraction

    • (A) whose numerator, being the weighted average, over the 10 provinces, of the small business tax rate in the province, is the aggregate, over the 10 provinces, of the product of the effective rate of tax payable under the province’s income tax legislation by corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act in the calendar year and a fraction whose numerator is the sum of the taxable income of those corporations that is attributable to the province under Part IV of the Income Tax Regulations for the taxation years of those corporations that end in the calendar year that ends in the fiscal year and the amount of that taxable income for earlier taxation years that has not been included in their taxable income for those earlier years and whose denominator is the sum of those numerators for each of the 10 provinces, and

    • (B) whose denominator, being the weighted average, over the 10 provinces, of the general corporate tax rate in the province, is the aggregate, over the 10 provinces, of the product of the general provincial corporate income tax rate in the province in the calendar year and a fraction whose numerator is the aggregate calculated under subparagraph (b)(i) and whose denominator is the sum of those numerators for each of the 10 provinces, and

• (b) the difference between

  • (i) the sum of

    • (A) the aggregate, over corporations that are not eligible for a deduction under subsection 125 (1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and the amount of that taxable income for its earlier taxation years that has not been included in its taxable income for those earlier years, and

    • (B) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was not attributable to the province for the taxation years referred to in that paragraph because of a deduction other than a deduction in relation to mineral resources allowed under paragraph 20(1)(v.1) of the Income Tax Act, prior to the time that the deduction ceased to have effect, and

  • (ii) the sum of

    • (A) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was attributable to the province for the taxation years referred to in that paragraph because of the application of clause 12(1)(o)(v)(A) or (E) and clause 18(1)(m)(v)(A) or (E) and subsections 69(6) and (7) of the Income Tax Act, prior to the time that those provisions ceased to have effect, and

    • (B) the aggregate, over investment corporations and mutual fund corporations, of the sum, for each of those corporations, of its taxable income that is attributable to the province for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income in any of its earlier taxation years to the extent that the previous taxable income has not been taken into account under this subparagraph, which aggregate, as determined by the Minister of National Revenue, is equal to the aggregate, over those corporations, of the product, for each of those corporations, of

      • (I) a fraction whose numerator is the total capital gains refund payable under the Income Tax Act to that corporation in that taxation year and any of those earlier taxation years, to the extent that the refund had not been taken into account in the calculation done under this clause for a previous fiscal year, and whose denominator is the percentage referred to in paragraph (a) 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, and

      • (II) a fraction whose numerator is that corporation’s taxable income earned in the province during the taxation year for which the capital gains refund is payable and whose denominator is that corporation’s taxable income for that taxation year. (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 means, in relation to a province for a calendar year, the estimated market value of all residential property in the province as determined by the Minister on the basis of

• (a) for the fiscal year 2008-09 and for each fiscal year prior to the fiscal year for which the data referred to in paragraph (b) first becomes available, estimates of the market value of residential properties for the 2001 calendar year produced by the Department of Finance from data on residential property assessments for tax purposes from municipal assessment agencies and adjusted from 2001 levels to reflect residential property values for the appropriate calendar year; and

• (b) for fiscal years beginning with the 2009-10 fiscal year or the first fiscal year for which the data described in this paragraph becomes available, and for all subsequent fiscal years in the fiscal arrangements period, data compiled by Statistics Canada from information on residential property assessments for tax purposes obtained by Statistics Canada from municipal assessment agencies and adjusted to ensure inter-provincial comparability. (valeur marchande estimée des immeubles résidentiels)

business sector industry

business sector industry means

• (a) for intermediate input expenditures, one of the business sector industries that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts; and

• (b) for machinery and equipment and non-residential construction capital expenditures, one of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts capital formation estimates. (secteur d’activité commerciale)

capital expenditures for machinery and equipment

capital expenditures for machinery and equipment means capital expenditures for machinery and equipment, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada. (dépenses d’immobilisation pour des machines et de l’outillage)

capital expenditures for non-residential construction

capital expenditures for non-residential construction means capital expenditures for non-residential construction, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada. (dépenses d’immobilisation pour la construction non résidentielle)

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) Hydro One Incorporated;

• (d) Hydro Quebec;

• (e) Manitoba Hydro;

• (f) Newfoundland and Labrador Hydro Corporation; and

• (g) Ontario Power Generation. (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 means the following games of chance:

• (a) those 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) those that are played on video lottery terminals;

• (c) those that are played on slot machines;

• (d) those played at casinos; and

• (e) bingo. (jeux de hasard)

housing expenditure category

housing expenditure category means one of the following categories used by Statistics Canada to categorize housing expenditures for the purpose of its Provincial Economic Accounts:

• (a) new residential housing expenditures;

• (b) residential housing repairs and renovation expenditures; and

• (c) residential housing transfer expenditures. (catégorie de dépenses de logement)

housing expenditures

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

• (a) new residential housing at fair market value, including the value of land, as determined by Statistics Canada;

• (b) residential housing repairs and renovations as determined by Statistics Canada for the purpose of its Provincial Economic Accounts; and

• (c) residential housing transfers as determined by Statistics Canada for the purpose of its Provincial Economic Accounts. (dépenses de logement)

hydrocarbon deposits

hydrocarbon deposits means naturally occurring hydrocarbon deposits. (gisements d’hydrocarbures)

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 W-level Interprovincial Input-Output Accounts. (intrant intermédiaire)

intermediate input expenditures

intermediate input expenditures means expenditures on intermediate input commodities net of any federal or provincial sales taxes, as determined by Statistics Canada,

• (a) in the case of expenditures by a business sector industry, for the purpose of its W-level Interprovincial Input-Output Accounts; and

• (b) in the case of expenditures by a non-business sector industry, using data from its Provincial Economic Accounts for the purpose of its W-level Interprovincial Input-Output Accounts. (dépenses d’intrant intermédiaire)

minerals

minerals means all metallic and non-metallic minerals classified by Statistics Canada for the purpose of its publication entitled General Review of the Mineral Industries, Mines, Quarries and Sand Pits, but does not include elemental sulphur. (minerais)

net provincial sales tax revenues

net provincial sales tax revenues means revenues from the revenue source described in subparagraphs 4(1)(c)(i) and (ii) and paragraph 7(1)(d), net of any provincial sales tax credits and provincial sales tax rebates. (recettes de taxe de vente provinciale nettes)

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 the following non-business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and W-level Interprovincial Input-Output Accounts, namely non-profit, hospital, other health institutions, university, other educational institutions, and municipal government. (industrie d’activité non commerciale)

personal expenditure category

personal expenditure category means one of the “j-level” categories, as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and used by Statistics Canada to categorize personal expenditures. (catégorie de dépenses personnelles)

personal expenditures

personal 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 persons for that insurance, net of any federal or provincial sales taxes, as determined by Statistics Canada; and

• (b) in the case of any other expenditures, personal expenditures as determined by Statistics Canada for the purpose of its Provincial Economic Accounts, net of any federal or provincial sales taxes other than federal and provincial tobacco and alcoholic beverage excise taxes levied on those expenditures, as determined by Statistics Canada. (dépenses personnelles)

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 means, in relation to an individual 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 micro-simulation model which, for greater certainty, excludes assessments

• (a) that, for earlier taxation years, were filed late and that, for later taxation years, were filed early; and

• (b) for trusts. (impôt fédéral sur le revenu simulé)

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)

DIVISION 1Fiscal Equalization to the Provinces

Revenue Source

• 4 (1) The provincial revenues that constitute, or that are deemed to constitute, the revenues referred to in paragraphs (a) to (e) of the definition revenue source in subsection 3.5(1) of the Act are the following:

  • (a) revenues relating to personal income, referred to in paragraph (a) of that definition, which are

    • (i) taxes, including a flat rate levy on income but not including a universal pension plan levy, imposed by a province on the income of individuals who are residents of the province on the last day of the taxation year,

    • (ii) taxes imposed by a province on the income of individuals who are not residents of the province on the last day of the taxation year and who have business income earned in the province during the taxation year,

    • (iii) taxes imposed by a province on the payroll of employers, and

    • (iv) revenues derived from the Ontario Health Care Premium;

  • (b) revenues relating to business income, referred to in paragraph (b) of that definition, which are

    • (i) taxes imposed by a province on the income of corporations earned in the province during the taxation year, other than taxes or revenues referred to in paragraph (e),

    • (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, and

    • (iii) revenues derived by a province from taxes imposed by the province on the paid-up capital of corporations;

  • (c) revenues relating to consumption, referred to in paragraph (c) of that definition, which are

    • (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 imposed by a province on final purchasers of gasoline and diesel fuel used in an internal combustion engine, including aviation fuel and railway fuel, but not including taxes on the sale of liquified petroleum gas,

    • (v) revenues derived by a province

      • (A) from fees for drivers’ and chauffeurs’ licences,

      • (B) from fees for licences for, and registrations of, passenger motor vehicles, motorcycles and mopeds, and

      • (C) that are considered to be motor vehicle licensing revenues by Statistics Canada for the purpose of the Financial Management System, other than commercial motor vehicle licensing revenues,

    • (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) taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance, other than those described in paragraph (a),

    • (ix) taxes imposed by a province on insurance premiums of insurance companies,

    • (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, and

    • (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);

  • (d) revenues derived from property taxes and miscellaneous revenues, referred to in paragraph (d) of that definition, which are

    • (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) revenues derived by a province from any other source, other than one described elsewhere in this subsection, including

      • (A) revenues derived from natural resources, other than those described in paragraph (e),

      • (B) revenues derived from interest charges, fines and penalties imposed by the province, including those imposed in relation to taxes,

      • (C) provincial tax revenues, other than those described elsewhere in this subsection, including

        • (I) those included in the “Other taxes” revenue category of the Financial Management System, including revenues that a province receives for gaming licences or permits that it issues to charities or other organizations, and

        • (II) those derived from taxes on the sale of liquified petroleum gas, and

      • (D) provincial non-tax revenues that are included in the “Other revenue from own sources” revenue category of the Financial Management System, other than those described elsewhere in this subsection,

      but not including

      • (E) provincial revenues included in the “Sales of goods and services” revenue category of the Financial Management System,

      • (F) contributions derived from vacation-with-pay, workers’ compensation, a universal pension plan or a public service or teachers’s pension plan that is not constituted as a trust,

      • (G) revenues included in the “Investment income” revenue category of the Financial Management System,

      • (H) any transfer payments received from other governments,

      • (I) taxes, levies or fees imposed by a province on the provincially guaranteed debt of business enterprises owned by the province and on all outstanding amounts advanced by the province to those business enterprises, and

      • (J) payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, and

    • (v) revenues derived by a local government sector from any source, other than one described elsewhere in this subsection, including

      • (A) revenues derived from interest charges, fines and penalties imposed by a local government sector, including those imposed in relation to taxes,

      • (B) local government tax revenues, other than those described in paragraph (c), including those that are included in the “Other taxes” revenue category of the Financial Management System, including those received for gaming licences and permits issued to charities or other organizations, and

      • (C) local government non-tax revenues, other than those described in clause (A), included in the “Other revenue from own sources” revenue category of the Financial Management System,

      but not including local government revenues included in the “Sales of goods and services” revenue category of the Financial Management System; and

  • (e) revenues derived from natural resources, referred to in paragraph (e) of that definition, which are

    • (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 any Part, other than Part V, of the Canada-Newfoundland Atlantic Accord Implementation Act,

    • (viii) revenues received by Nova Scotia from the Government of Canada under any Part, other than Part V, of 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.

• (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.

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 yield of the average provincial personal income tax in the province in the taxation year that ends in the fiscal year determined in accordance with subsection 10(1), 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 in the province – other than trusts – of the simulated federal income tax for the taxation year that ends in the fiscal year as determined by the micro-simulation model, 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 Financial Management System, of

    • (A) the aggregate, over the 10 provinces, of the total profits 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 an electricity enterprise, and

    • (B) a fraction whose numerator is the amount of the total profits referred to in clause (A) for 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 excluded under this clause for that business enterprise in relation to a previous calendar year, 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 of the numerators for each of the 10 provinces;

• (c) in the case of revenues relating to consumption, described in paragraph 4(1)(c), the amount determined, based on 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

  where

  A

  is the aggregate, over each personal expenditure category, of the product of total personal expenditures for that category in the province and the ratio of total personal expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total personal expenditures for that category in Canada,

  B

  is the aggregate, over each housing expenditure category, of the product of total housing expenditures for that category in the province and the ratio of total housing expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total housing expenditures for that category in Canada,

  C

  is the aggregate, over each business sector industry, of the product of total capital expenditures for machinery and equipment by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,

  D

  is the aggregate, over each business sector industry, of the product of total capital expenditures for non-residential construction by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,

  E

  is the aggregate, over each non-business sector industry, of the product of total capital expenditures for machinery and equipment by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,

  F

  is the aggregate, over each non-business sector industry, of the product of total capital expenditures for non-residential construction by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,

  G

  is the aggregate, over each non-business sector industry, of the aggregate, over each intermediate input commodity, of the product of total intermediate input expenditures for that intermediate input commodity by that non-business sector industry in the province and the ratio of the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada, and

  H

  is the aggregate, over each business sector industry, of the aggregate, over each intermediate input commodity, of the product of total intermediate input expenditures for that intermediate input commodity by that business sector industry in the province and the ratio of the total of those intermediate input expenditures for that intermediate input commodity by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that business sector industry in Canada;

• (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 × W1) + (B2 × W2) + (B3 × W3)

  where

  B1

  is equal to the market value residential sub-base, determined by the formula

  {[(V × 1/V1) × Q] + [(P × 1/P1) × (1 - Q)]} × 1/R

  where

  V

  is equal to the assessed market value of residential property in the province for the calendar year that ends in the preceding fiscal year,

  V1

  is equal to the aggregate, over the 10 provinces, of the amount determined for V for each province,

  Q

  is equal to

  • (i) for the purpose of calculating a fiscal equalization payment referred to in section 3.2 of the Act, 0.7 for all provinces, and

  • (ii) for the purpose of determining the revenue base referred to in paragraph 3.3(a) of the Act, in relation to calculating a transitional fiscal equalization payment, 0.5 for British Columbia and 0.7 for all other provinces,

  P

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

  P1

  is equal to the aggregate, over the 10 provinces, of the amount determined for P for each province, and

  R

  is the aggregate, over the 10 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

  have the meanings as set out above,

  B2

  is equal to the commercial-industrial sub-base as determined by the formula

  {[(F + G) × H] + I } × 1/N2

  where

  F

  is equal to 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 and animal production industry, the government elementary and secondary schools industry, the universities industry, the government community colleges and C.E.G.E.P.s industry, the other government education services industry, the hospitals and government nursing and residential care facilities industry, the other provincial and territorial government services industry and the other municipal government services industry, in the province for the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada based on data from the Interprovincial Input-Output Accounts,

  G

  is equal to the product of

  • (i) the product of the population of the province for the preceding fiscal year and

    • (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 the 10 provinces, of one third of the amount determined for F and whose denominator is the aggregate, over the 10 provinces, of the product referred to in subparagraph (i),

  H

  is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the value determined for I multiplied by the fraction 20.945/79.055 and whose denominator is the aggregate, over the 10 provinces, of the sum of the amounts determined for F and G,

  I

  is equal to 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 industries, other than in the agriculture, forestry, fishing and hunting industry, the local, municipal and regional public administration industry, the provincial and territorial public administration industry, the primary and secondary education industry, the community colleges and C.E.G.E.P.s industry, the universities industry, the business schools and computer management training industry, the technical and trade schools industry, the other schools and instruction industry, the educational support services industry, the hospital services industry, the nursing and residential care facilities industry, the religious, grant-making, civic, and professional and similar organizations industry, and

  N2

  is equal to the aggregate, over the 10 provinces, of the amount determined for each province by the formula

  [(F + G) × H] + I

  where

  F, G, H and I

  have the meanings as set out above,

  B3

  is equal to the farm sub-base as determined by the formula

  [(K × L) + M] × 1/N3

  where

  K

  is equal to 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 its publication entitled National Balance Sheet Accounts,

  L

  is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the amount determined for M multiplied by the fraction 84.078/15.922 and whose denominator is the aggregate, over the 10 provinces, of the value determined for K,

  M

  is equal to the value of farm net capital stock in the province that consists of building construction in the agricultural industry, 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 equal to the aggregate, over the 10 provinces, of the amount determined for each province by the formula

  (K × L) +M

  where

  K, L and M

  have the meanings as set out above,

  W1

  is equal to 0.576, being the weight for the market value residential sub-base,

  W2

  is equal to 0.406, being the weight for the commercial-industrial sub-base, and

  W3

  is equal to 0.018, being the weight for the farm sub-base.

DIVISION 2Nova Scotia and Newfoundland and Labrador

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 means an amount that is the difference between

• (a) the number of litres of diesel fuel,

  • (i) in the case of a province in which tax at road-use rate is not paid throughout the calendar year, sold in the province for use on roads, as determined by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada or, if that data is not available, on any other relevant information, and

  • (ii) in any other case, taxed at road-use rate sold in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002 and 405-0003, or if Statistics Canada does not make the determination, as determined by the Minister based on 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 based on any relevant information, and

  • (ii) in the case of any other province, the product of

    • (A) the number of litres of diesel fuel

      • (I) in the case of a province in which tax at road-use rate is not paid throughout the calendar year, sold in the province for use on roads, as determined by the Minister based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada, and

      • (II) in any other case, taxed at road-use rate in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its survey Road Motor Vehicle Survey – Fuel or, if Statistics Canada does not make the determination, as determined by the Minister, based on any other relevant information, and

    • (B) in the case of

      • (I) Prince Edward Island, 0.3,

      • (II) Quebec and Newfoundland and Labrador, 0.25,

      • (III) Nova Scotia and New Brunswick, 0.15, and

      • (IV) Manitoba, Saskatchewan, Alberta and British Columbia, zero. (nombre rajusté de litres de carburant diesel taxés au taux d’utilisation routière dans la province)

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 means the number of litres of gasoline taxed at road-use rate sold in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405–0002 and 405–0003 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 where gasoline sold for use by farm trucks is taxed at road-use rate, the number of litres of gasoline sold for use by farm trucks in the province. (nombre rajusté de litres d’essence taxés au taux d’utilisation routière dans la province)

average tax rate

average tax rate means

• (a) for the purpose of subparagraph 8(1)(f)(i), the aggregate, over the 10 provinces, of the product of the provincial rate of gasoline tax applicable to road-use gasoline sold in the province during the calendar year that ends in the fiscal year and a fraction whose numerator is the adjusted number of litres of gasoline taxed at road-use rate in that province during the calendar year that ends in the fiscal year and whose denominator is the sum of those numerators for each of the 10 provinces;

• (b) for the purpose of subparagraph 8(1)(f)(ii), the aggregate, over the 10 provinces, of the product of the tax rate applicable to aviation fuel sold in the province during the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of aviation fuel sold in that province during the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Road Motor Vehicle Survey – Fuel or, if Statistics Canada does not make the determination, as determined by the Minister based on any other relevant information and whose denominator is the sum of those numerators for each of the 10 provinces;

• (c) for the purpose of subparagraph 8(1)(f)(iii), the aggregate, over the 10 provinces, of the product of the tax rate applicable to gasoline sold for use by farm trucks in the province during the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of gasoline sold for use by farm trucks in that province, and whose denominator is the sum of those numerators for each of the 10 provinces;

• (d) for the purpose of subparagraph 8(1)(g)(i), the aggregate, over the 10 provinces, of the product of the provincial rate of diesel tax applicable to road-use diesel fuel sold in the province during the calendar year that ends in the fiscal year and a fraction whose numerator is the adjusted number of litres of diesel fuel taxed at road-use rate in that province during the calendar year that ends in the fiscal year, and whose denominator is the sum of those numerators for each of the 10 provinces;

• (e) for the purpose of subparagraph 8(1)(g)(ii), the aggregate, over the 10 provinces, of the product of the tax rate applicable to railway fuel sold in the province during the calendar year that ends in the fiscal year and 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 the province during the calendar year that ends in the fiscal year, as determined by the Minister based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada, and

    • (B) in any other case, the number of litres of railway fuel sold in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Road Motor Vehicle Survey – Fuel or by the Minister based on any other relevant information, and

  • (ii) whose denominator is the sum of those numerators for each of the 10 provinces; and

• (f) for the purpose of subparagraph 8(1)(g)(iii), the aggregate, over the 10 provinces, of the product of the tax rate that applies to diesel fuel sold for use by farm trucks in the province and a fraction whose numerator is the number of litres of diesel fuel used by farm trucks in the province and whose denominator is the sum of those numerators for each of the 10 provinces. (taux moyen de taxe)

calculated net profits

calculated net profits means, for a province, the difference that results after subtracting capital assessed depreciation costs of the mining and quarrying industry – including depreciation costs related to mine-site exploration and development, but not including general exploration and development expenditures – 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 Economic Accounts, from the net profits before taxes of that industry calculated, for that calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of data from its Interprovincial Input-Output Accounts, as the sum of

• (a) the net income and other operating surpluses of that industry,

• (b) royalties on natural resources paid by that industry, and

• (c) commodity and other indirect taxes paid, less any subsidies received, by that industry. (bénéfice net)

mining and quarrying industry

mining and quarrying industry means the mining and quarrying industry as defined by Statistics Canada for the purpose of its Interprovincial Input-Output Accounts, excluding the following activities as classified within the North American Industry Classification System:

• (a) stone mining and quarrying;

• (b) sand, gravel, clay and ceramic and refractory minerals mining and quarrying; and

• (c) miscellaneous non-metallic mineral mining and quarrying. (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 4(2) of the Act as it read on March 13, 2004. (revenue net, après versement des prix, provenant de la vente de billets de loterie)

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-Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister, based on 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 motor 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-Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister, based on 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 survey Annual Survey of Logging and Forestry Support, 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 Newfoundland and Labrador. (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)

Revenue Source

• 7 (1) The provincial revenues that constitute, or that are deemed to constitute, the revenues referred to in each paragraph of the definition revenue source in subsection 4(2) of the Act as it read on March 13, 2004 are the following:

  • (a) personal income taxes, referred to in paragraph (a) of that definition, which are

    • (i) taxes, including a flat rate levy on income but not including a universal pension plan levy, imposed by a province on the income of individuals who are residents of the province on the last day of the taxation year,

    • (ii) taxes imposed by a province on the income of individuals who are not residents of the province on the last day of the taxation year and who have business income earned in the province during the taxation year, and

    • (iii) revenues derived from the Ontario Health Care Premium;

  • (b) the taxes and revenues referred to in paragraph (b) of that definition, which are

    • (i) taxes imposed by a province on the income of corporations earned in the province during the taxation year, other than taxes or revenues referred to in paragraphs (l) and (v), 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) taxes on capital of corporations, referred to in paragraph (c) of that definition, which are

    • (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 business enterprises owned by the province and on all outstanding amounts advanced by the province to those business enterprises;

  • (d) general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes, referred to in paragraph (d) of that definition, which are

    • (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;

  • (e) tobacco taxes, referred to in paragraph (e) of that definition, which are specific taxes imposed by a province on final purchasers of tobacco and tobacco products;

  • (f) motive fuel taxes derived from the sale of gasoline, referred to in paragraph (f) of that definition, which are taxes imposed by a province on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes on the sale of liquified petroleum gas;

  • (g) motive fuel taxes derived from the sale of diesel fuel, referred to in paragraph (g) of that definition, which are taxes imposed by a province on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes on the sale of liquified petroleum gas;

  • (h) non-commercial motor vehicle licensing revenues, referred to in paragraph (h) of that definition, which are

    • (i) fees for drivers’ and chauffeurs’ licences,

    • (ii) fees for licences for, and registrations of, passenger motor vehicles, motorcycles and mopeds, and

    • (iii) fees that are considered to be motor vehicle licensing revenues by Statistics Canada for the purpose of the Financial Management System, other than commercial motor vehicle licensing revenues;

  • (i) commercial motor vehicle licensing revenues, referred to in paragraph (i) of that definition, which are 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) alcoholic beverage revenues, referred to in paragraph (j) of that definition, which are 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) hospital and medical care insurance premiums, referred to in paragraph (k) of that definition, which are revenues derived by a province from taxes, levies or premiums imposed by a province for the purpose of financing hospitalization insurance or medical care insurance, other than taxes described in paragraphs (a), (d) and (y);

  • (l) forestry revenues, referred to in paragraph (l) of that definition, which are revenues attributable to forestry on Crown land and private land in the province and that are derived by the province from

    • (i) a tax imposed by the province specifically on income from logging the land, and

    • (ii) royalties, stumpage fees, licences, rentals and fees that are related to the exploitation of forestry resources on the land;

  • (m) the revenues referred to in paragraph (m) of that definition are revenues derived by a province, other than revenues 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) revenues referred to in paragraph (n) of that definition are revenues derived by a province, other than revenues 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) heavy oil revenues, referred to in paragraph (o) of that definition are revenues, other than revenues 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) mined oil revenues, referred to in paragraph (p) of that definition are 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) the revenues referred to in paragraph (q) of that definition are revenues, other than revenues 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) the revenues referred to in paragraph (r) of that definition are revenues, other than revenues 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) revenues from domestically sold natural gas and exported natural gas, referred to in paragraph (s) of that definition, which are 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) sales of Crown leases and reservations on oil and natural gas lands, referred to in paragraph (t) of the definition, which are 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) the revenues referred to in paragraph (u) of that definition, which are revenues, other than revenues described in paragraphs (m) to (t), 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) mining revenues, referred to in paragraph (v) of that definition, which are 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) water power rentals, referred to in paragraph (w) of that definition, which are revenues that are derived by a province from the right to use, or the use of, water resources;

  • (x) insurance premium taxes, referred to in paragraph (x) of that definition, which are taxes imposed by a province on insurance premiums of insurance companies;

  • (y) payroll taxes, referred to in paragraph (y) of that definition, which are taxes imposed by a province on the payroll of employers;

  • (z) provincial and local government property taxes, referred to in paragraph (z) of that definition, which are

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

  • (z.2) revenues from lottery ticket sales, referred to in paragraph (z.2) of that definition, which are 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) revenues referred to in paragraph (z.3) of that definition, which are

    • (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) 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, which are

    • (i) revenues derived by a province from any source other than a source described elsewhere in this subsection, including

      • (A) revenues included in the “Sales of Goods and Services” revenue category of the Financial Management System, other than revenues described in subparagraph (c)(ii) and revenues derived by the provincial and territorial general government sub-sector from sales of goods and services to any other government sub-sector other than one that is a component of the federal government sector,

      • (B) revenues derived from natural resources, other than those described in paragraphs (l) to (w) and the portion of the revenues described in paragraph (z.5) that relates to natural resources,

      • (C) revenues derived from interest charges, fines and penalties imposed by a province, including those imposed in relation to taxes,

      • (D) provincial tax revenues, other than revenues described elsewhere in this subsection, that are included in the “Other Taxes” revenue category of the Financial Management System, including revenues that a province receives for gaming licences or permits that it issues to charities or other organizations,

      • (E) provincial non-tax revenues, other than revenues described elsewhere in this subsection, that are included in the “Other Revenues from Own Sources” revenue category of the Financial Management System, and

      • (F) other provincial tax revenues and other provincial non-tax revenues not described elsewhere in this subsection, including taxes on the sale of liquified petroleum gas,

      but not including

      • (G) contributions derived from vacation with pay, workers’ compensation, a universal pension plan or a public service or teacher’s pension plan that is not constituted as a trust,

      • (H) revenues included in the “Investment Income” revenue category of the Financial Management System, other than any natural resource royalties or other natural resource revenues described in clause (B) and the interest on taxes described in clause (C),

      • (I) any transfer payments received from other governments, or

      • (J) payments to a province by the Government of Canada pursuant to section 99 of the Softwood Lumber Products Export Charge Act, 2006, and

    • (ii) local government revenues that are

      • (A) included in the “Sales of Goods and Services” revenue category of the Financial Management System, other than revenues derived by the local general government sub-sector and the school boards sub-sector from sales of goods and services to any other government sub-sector,

      • (B) revenues derived from interest charges, fines and penalties imposed by a local government sector, including those imposed in relation to taxes,

      • (C) local government taxes other than those described in paragraphs (d) and (z), including those that are included in the “Other Taxes” revenue category of the Financial Management System, including revenues received by a local government for gaming licences or permits that it issues to charities or other organizations, and

      • (D) local government non-tax revenues included in the “Other Revenue from Own Sources” revenue category of the Financial Management System, other than revenues described in clause (B); and

  • (z.5) revenues referred to in paragraph (z.5) of that definition, which are

    • (i) revenues received from the Government of Canada under any Part, other than Part V, of the Canada-Newfoundland Atlantic Accord Implementation Act,

    • (ii) revenues received from the Government of Canada under any Part, other than Part V, of 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 revenue source referred to in subsection 4(2) of the Act as it read on March 13, 2004 that is shared by Canada and the province, other than the revenue referred to in subparagraph (i) or (ii).

• (2) In computing the revenue from the revenue source described in paragraph (1)(c) for 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 (1)(c)(ii).

• (3) In computing the revenue from the revenue source described in paragraph (1)(z.4) for 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 (1)(z.4)(i)(A) and (ii)(A).

Revenue Base

• 8 (1) For the purpose of sections 3.6 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 yield of the average provincial personal income tax in the province in the taxation year that ends in the fiscal year determined in accordance with subsection 10(1), 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 in the province – other than trusts – of the simulated federal income tax for the taxation year that ends in the fiscal year as determined by the micro-simulation model, 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 Financial Management System, of

      • (A) the aggregate, over the 10 provinces, of the total profits 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, and

        • (III) of an enterprise carrying on a provincial lottery, and

      • (B) a fraction whose numerator is the amount of the total profits referred to in clause (A) for 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 excluded under this clause for that business enterprise in relation to a previous calendar year, 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 of the numerators for each of the 10 provinces;

  • (c) in the case of taxes on the capital of corporations, described in paragraph 7(1)(c), the aggregate of

    • (i) the total of the taxable paid-up capital employed in the province in a period – referred to in this paragraph as “the corporate fiscal year” – of 12 consecutive months as determined by Statistics Canada and that ends in the fiscal year, of all corporations classified by Statistics Canada as included in the following industries:

      • (A) agriculture, forestry, fishing and hunting,

      • (B) oil and gas extraction and coal mining,

      • (C) mining and quarrying, other than oil and gas extraction and coal mining,

      • (D) utilities,

      • (E) construction,

      • (F) manufacturing,

      • (G) wholesale trade,

      • (H) retail trade,

      • (I) transportation and warehousing,

      • (J) information and cultural,

      • (K) real estate and rental and leasing companies,

      • (L) professional, scientific and technical services,

      • (M) administration and support, waste management and remediation services,

      • (N) education services,

      • (O) health care and social assistance,

      • (P) arts, entertainment and recreation,

      • (Q) accommodation and food services,

      • (R) other services, except public administration,

      • (S) non-depository credit intermediation,

      • (T) other financial intermediation, and

      • (U) deposit credit intermediation,

      as determined for each industry by the formula

      [(A × C) /At] + [(AA × CC) /AAt]

      where

      A

      is the total assets of firms with more than $1,000,000 of total assets, excluding that portion of the agriculture, forestry, fishing and hunting industries that pertains to the agriculture industry, for all firms that are owned less than 90% by Her Majesty allocated to the province for that industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,

      AA

      is the total assets of firms with more than $1,000,000 of total assets, for all firms that are owned 90% or more by Her Majesty in right of the province for each province for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,

      At

      is the total assets for Canada of that industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,

      AAt

      is the total assets for Canada of all industries other than credit unions, caisses populaires or other cooperative credit societies, and the insurance industry for the corporate fiscal year, as determined by the Industrial Organization and Finance Division of Statistics Canada,

      C

      is

      • (I) for each industry, excluding the deposit credit intermediation industry and the insurance industry, the amount 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

        D

        is cash and deposits,

        E

        is investments and accounts with affiliates,

        F

        is portfolio investments, excluding Government of Canada treasury bills,

        G

        is mortgage or hypothecary loans to non-affiliates,

        H

        is non-mortgage or non-hypothecary loans to non-affiliates, excluding loans to individuals, farms, unincorporated businesses, non-profit institutions and local or central credit unions, caisses populaires or other cooperative credit societies,

        I

        is accumulated depreciation,

        J

        is capital cost allowance,

        K

        is book depreciation of the industry for the corporate fiscal year for Canada, as determined by the Industrial Organization and Finance Division of Statistics Canada,

        L

        is the amount owing to parents, subsidiaries and affiliates,

        M

        is borrowing by non-affiliates,

        N

        is deferred income tax,

        P

        is other liabilities, including minority interests in consolidated subsidiaries,

        Q

        is total equity, and

        R

        is total assets of the industry for the corporate fiscal year for Canada, as determined by the Industrial Organization and Finance Division of Statistics Canada, and

      • (II) for the deposit credit intermediation industry, excluding credit unions, caisses populaires and other cooperative credit societies, the product of the total equity employed in the province in that fiscal year by all corporations classified by Statistics Canada as being included in that industry and a fraction

        • 1. whose numerator is the aggregate, over the 10 provinces, of the product of the rate of capital tax that applies in the province to financial institutions and a fraction whose numerator is the total equity employed in the province by all corporations classified by Statistics Canada as being included in the deposit credit intermediation industry, excluding credit unions, caisses populaires and other cooperative credit societies, and whose denominator is the sum of those numerators for each of the 10 provinces, and

        • 2. whose denominator is the aggregate, over the 10 provinces, of the product of the rate of capital tax that applies in the province to non-financial institutions and a fraction whose numerator is the total paid-up capital employed in the province by all corporations classified by Statistics Canada, other than corporations classified in the deposit credit intermediation industry, and whose denominator is the sum of those numerators for each of the 10 provinces, and

      CC

      is 32% of the aggregate for all industries of the amount determined for C,

    • (ii) the product of

      • (A) the aggregate 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 based on 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 aggregate, over the 10 provinces, of the revenues derived for the fiscal year from the taxes, levies and fees described in subparagraph 7(1)(c)(ii), as determined by the Minister, by the aggregate, over the 10 provinces, of the aggregate amount referred to in clause (A) for that fiscal year, and

        • (II) whose denominator is the quotient that results from dividing the aggregate, over the 10 provinces, of the revenues derived for the fiscal year from the taxes described in subparagraph 7(1)(c)(i), as determined by the Minister, by the aggregate, over the 10 provinces, of the aggregate amount referred to in subparagraph (i) for the fiscal year;

  • (d) in the case of general and miscellaneous sales taxes, harmonized sales taxes and amusement taxes, described in paragraph 7(1)(d), the amount determined, based on 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

    where

    A

    is the aggregate, over each personal expenditure category, of the product of total personal expenditures for that category in the province and the ratio of total personal expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total personal expenditures for that category in Canada,

    B

    is the aggregate, over each housing expenditure category, of the product of total housing expenditures for that category in the province and the ratio of total housing expenditures for that category in Canada from which provinces derive net provincial sales tax revenues to total housing expenditures for that category in Canada,

    C

    is the aggregate, over each business sector industry, of the product of total capital expenditures for machinery and equipment by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,

    D

    is the aggregate, over each business sector industry, of the product of total capital expenditures for non-residential construction by that business sector industry in the province and the ratio of the total of those capital expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that business sector industry in Canada,

    E

    is the aggregate, over each non-business sector industry, of the product of total capital expenditures for machinery and equipment by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,

    F

    is the aggregate, over each non-business sector industry, of the product of total capital expenditures for non-residential construction by that non-business sector industry in the province and the ratio of the total of those capital expenditures by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those capital expenditures by that non-business sector industry in Canada,

    G

    is the aggregate, over each non-business sector industry, of the aggregate, over each intermediate input commodity, of the product of total intermediate input expenditures for that intermediate input commodity by that non-business sector industry in the province and the ratio of the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that non-business sector industry in Canada, and

    H

    is the aggregate, over each business sector industry, of the aggregate, over each intermediate input commodity, of the product of total intermediate input expenditures for that intermediate input commodity by that business sector industry in the province and the ratio of the total of those intermediate input expenditures by that business sector industry in Canada from which provinces derive net provincial sales tax revenues to the total of those intermediate input expenditures for that intermediate input commodity by that business sector industry in Canada;

  • (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 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 Road Motor Vehicle Survey – Fuel, and

      • (B) in any other case, by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-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, or by the Minister if Statistics Canada does not make the determination:

    • (i) the number of passenger automobile registrations,

    • (ii) four tenths of the number of motorcycle registrations, and

    • (iii) four tenths of the number of moped registrations, or of mopeds in use if the province does not register mopeds;

  • (i) in the case of commercial motor vehicle licensing revenues described in paragraph 7(1)(i), the aggregate of the amounts for each of the following categories of vehicles, calculated as the product of the number of registered vehicles in each category – as determined by Statistics Canada for the purpose of its publication entitled Canadian Vehicle Survey – and the weighted average licence fee, over the 10 provinces – calculated on the basis of data respecting licence fees charged by each province for each vehicle category – as contained in the R.L. Polk & Co. publication entitled Canadian and International Registration Manual:

    • (i) farm vehicles that are 4,500 kg to 15,000 kg;

    • (ii) farm vehicles that are more than 15,000 kg,

    • (iii) non-farm vehicles that are 4,500 kg to 15,000 kg, and

    • (iv) non-farm vehicles that are more than 15,000 kg;

  • (j) in the case of alcoholic beverage revenues described in paragraph 7(1)(j), the aggregate of

    • (i) the product of the revenue derived by all provinces from the sale of spirits in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and 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 its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces,

    • (ii) the product of the revenue derived by all provinces from the sale of wine in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and 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 its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces, and

    • (iii) the product of the revenue derived by all provinces from the sale of beer in the fiscal year, as determined by the Minister based on information provided by the provinces and Statistics Canada, and 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 its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces;

  • (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) + (G × H/I)

    where

    A

    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 Alberta, the province derived from its hospital and medical care insurance premium system, and

    • (ii) in the case of any other province, that would have been derived by the province if Alberta’s hospital and medical care insurance premium system applied in the province,

    B

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

    C

    is the aggregate, over the 10 provinces, of the amount determined for A for each province,

    D

    is the value of hospital and medical care insurance premiums, as determined by the micro-simulation model, for the taxation year that ended in the previous fiscal year, that

    • (i) in the case of British Columbia, the province derived from its hospital and medical care insurance premium system, and

    • (ii) in the case of any other province, that would have been derived by the province if British Columbia’s hospital and medical care insurance premium system applied in the province,

    E

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

    F

    is the aggregate, over the 10 provinces, of the amount determined for D for each province,

    G

    is the value of hospital and medical care insurance premiums, as determined by the micro-simulation model, for the taxation year that ended in the previous fiscal year, that

    • (i) in the case of Quebec, the province derived from its hospital and medical care insurance premium system, and

    • (ii) in the case of any other province, that would have been derived by the province if Quebec’s hospital and medical care insurance premium system applied in the province,

    H

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

    I

    is the aggregate, over the 10 provinces, of the amount determined for G for each province;

  • (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 marketable volume is determined by the Canadian Forest Service for the purpose of its publication entitled the Compendium of Canadian Forestry Statistics:

      • (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 aggregate of the products referred to in clauses (i)(A) to (F), for each of which the net marketable volume is determined by the Canadian Forest Service for the purpose of its publication entitled the Compendium of Canadian Forestry Statistics;

  • (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 for the purpose of its publication entitled 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 for the purpose of its publication entitled 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 for the purpose of its publication entitled 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 4(2) of the Act as it read on March 13, 2004, 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 for the purpose of its publication entitled 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 for the purpose of its publication entitled Oil and Gas Extraction;

  • (v) in the case of mining revenues described in paragraph 7(1)(v),

    • (i) in the case where the revenue to be equalized from mining revenues in the province for the fiscal year is greater than or equal to the calculated net profits, the revenue to be equalized from mining revenues in the province for the fiscal year, and

    • (ii) in the case where that revenue to be equalized is less than those calculated net profits, the calculated net profits less the aggregate, over the preceding fiscal years beginning with fiscal year 2000–2001, of the amounts previously subtracted from the calculated net profits under this subparagraph, 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 its publication entitled Electric Power Generation, Transmission and Distribution,

    • (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 its publication entitled Electric Power Generation, Transmission and Distribution, 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 its publication entitled Electric Power Generation, Transmission and Distribution, 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 its publication entitled Electric Power Generation, Transmission and Distribution, 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 its publication entitled Electric Power Generation, Transmission and Distribution, 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;

  • (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

    A

    is 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 government sector to employees in the defence industry, and

    • (ii) the provincial and territorial government sector and the local government sector to employees in the provincial administration industry, the local government administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,

    W

    is equal to the aggregate revenue derived from payroll taxes by all provinces that levy those taxes for the fiscal year, as computed by the Minister in accordance with subsections 9(5) and (6),

    W1,W2, W3 and W4

    are weightings whose value is equal to the revenue derived from payroll taxes for the fiscal year, as computed by the Minister in accordance with subsections 9(5) and (6), 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,

    P

    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 based on its survey Employment, Payrolls and Hours, other than the payrolls of

    • (i) employers not included in that survey, and

    • (ii) employers in the provincial administration industry, the local administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,

    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

    M

    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 × W1) + (B2 × W2) + (B3 × W3) + (B4 × W4)

    where

    B1

    is equal to the market value residential sub-base, determined by the formula

    {[(V × 1/V1) × Q] + [(P × 1/P1) × (1 - Q)]} × 1/R

    where

    V

    is equal to the assessed market value of residential property in the province for the calendar year that ends in the preceding fiscal year,

    V1

    is equal to the aggregate, over the 10 provinces, of the amount determined for V for each province,

    Q

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

    P

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

    P1

    is equal to the aggregate, over the 10 provinces, of the amount determined for P for each province,

    R

    is the aggregate, over the 10 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

    have the meanings as set out above,

    B2

    is equal to the commercial-industrial sub-base as determined by the formula

    {[(F + G) × H] + I } × 1/ N2

    where

    F

    is equal to 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 and animal production industry, the government elementary and secondary schools industry, the universities industry, the government community colleges and C.E.G.E.P.s industry, the other government education services industry, the hospitals and government nursing and residential care facilities industry, the other provincial and territorial government services industry and the other municipal government services industry, in the province for the calendar year that ends in the preceding fiscal year, as determined by Statistics Canada based on data from the Interprovincial Input-Output Accounts,

    G

    is equal to the product of

    • (i) the product of the population of the province for the preceding fiscal year and

      • (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 the 10 provinces, of one third of the amount determined for F and whose denominator is the aggregate, over the 10 provinces, of the product determined in subparagraph (i),

    H

    is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the value determined for I multiplied by the fraction 20.945/79.055 and whose denominator is the aggregate, over the 10 provinces, of the sum of the amounts determined for F and G,

    I

    is equal to 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 industries, other than in the agriculture, forestry, fishing and hunting industry, the local, municipal and regional public administration industry, the provincial and territorial public administration industry, the primary and secondary education industry, the community colleges and C.E.G.E.P.s industry, the universities industry, the business schools and computer management training industry, the technical and trade schools industry, the other schools and instruction industry, the educational support services industry, the hospital services industry, the nursing and residential care facilities industry, the religious, grant-making, civic, and professional and similar organizations industry, and

    N2

    is equal to the aggregate, over the 10 provinces, of the amount determined for each province by the formula

    [(F + G) × H] + I

    where

    F, G, H and I

    have the meanings as set out above,

    B3

    is equal to the farm sub-base as determined by the formula

    [(K × L) +M] × 1/N3

    where

    K

    is equal to 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 its publication entitled National Balance Sheet Accounts,

    L

    is equal to a fraction whose numerator is the aggregate, over the 10 provinces, of the amount determined for M multiplied by the fraction 84.078/15.922 and whose denominator is the aggregate, over the 10 provinces, of the value determined for K,

    M

    is equal to the value of farm net capital stock in the province that consists of building construction in the agricultural industry, 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 equal to the aggregate, over the 10 provinces, of the amount determined for each province by the formula

    (K × L) +M

    where

    K, L and M

    have the meanings as set out above,

    B4

    is equal to the multi-concept residential sub-base as determined by the formula

    {[(A + B + C) × D] + E} × 1/N4

    where

    A

    is equal to the value of personal 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 Economic Accounts,

    B

    is equal to the product of

    • (i) the product of the population of the province for the preceding fiscal year and

      • (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 the 10 provinces, of the amount determined for A and whose denominator is the aggregate, over the 10 provinces, of the product determined in subparagraph (i),

    C

    is equal to 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 the 10 provinces, of the amount determined for A and whose denominator is the aggregate, over the 10 provinces, of the amount determined in subparagraph (i),

    D

    is equal to a fraction whose numerator is the product of the aggregate, over the 10 provinces, of the amount determined for E and 0.6056 and whose denominator is the aggregate, over the 10 provinces, of the sum of the amounts determined for A, B and C,

    E

    is equal to 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,

    N4

    is the aggregate, over the 10 provinces, of the amount determined for each province by the formula

    [(A + B + C) × D] + E

    where

    A, B, C, D and E

    have the meanings as set out above,

    W1

    is equal to 0.576/2, being the weight for the market value residential sub-base,

    W2

    is equal to 0.406, being the weight for the commercial-industrial sub-base,

    W3

    is equal to 0.018, being the weight for the farm sub-base, and

    W4

    is equal to 0.576/2, being the weight for the multi-concept residential sub-base;

  • (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 personal 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 Economic Accounts, and a fraction whose numerator is 0.1 and whose denominator is the aggregate, over the 10 provinces, of that personal 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 personal 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 Economic Accounts, and a fraction whose numerator is 0.4 and whose denominator is the aggregate, over the 10 provinces, of that personal 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 4(2) of the Act as it read on March 13, 2004 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, as determined under this section, paragraph 14(2)(b) and subsections 14(3) to (5), and

    • (ii) a fraction whose numerator is the aggregate, over the 10 provinces, of the revenue, determined under subsection 7(1) and paragraph 14(2)(a), for that revenue source and whose denominator is the aggregate, over the 10 provinces, of the revenue base for that revenue source, as determined under this section, paragraph 14(2)(b) and subsections 14(3) to (5); and

  • (z.5) in the case of revenues of the Government of Canada from any of the sources referred to in the definition revenue source in subsection 4(2) of the Act as it read on March 13, 2004 that are shared by Canada with the provinces, described in paragraph 7(1)(z.5),

    • (i) for the revenue source that is revenue received from the Government of Canada under the Canada-Newfoundland Atlantic Accord Implementation Act, the revenue derived by the province from that revenue source, as determined by Statistics Canada,

    • (ii) for the revenue source that is revenue received from the Government of Canada under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, the revenue derived by the province from that revenue source, as determined by Statistics Canada, and

    • (iii) for the revenue source that is the province’s share of revenue from any revenue source referred to in that definition that is shared by Canada and the province, other than the revenue referred to subparagraph 7(1)(z.5)(i) or (ii), the province’s share of the revenue from that revenue source, 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

  A

  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;

  B

  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;

  C

  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;

  X

  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;

  Y

  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

  Z

  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 for the purpose of its publication entitled 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

  A

  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;

  B

  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;

  C

  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;

  X

  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;

  Y

  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

  Z

  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 for the purpose of its publication entitled 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.

DIVISION 3General

Revenues to Be Equalized

• 9 (1) The revenues from the revenue sources described in subsections 4(1) and 7(1) for a province for a fiscal year include any grant in lieu of taxes, licences, levies or fees that is paid to a province by the Government of Canada in relation to that revenue source and that is not otherwise specifically included in those subsections.

• (2) In computing the revenues from the revenue sources described in paragraphs 4(1)(a) and 7(1)(a) in respect of Manitoba and Ontario for a fiscal year, the revenues are not reduced by the amount of any recoveries from those provinces in respect of overpayments of capital gains taxes pursuant to a tax collection agreement.

• (3) The revenues for a province for a fiscal year from the revenue sources described in subsections 4(1) and 7(1) include the revenues from the provincial and territorial general government sub-sector, the local general government sub-sector and the school boards sub-sector. However, revenues from the revenue sources described in subparagraph 4(1)(d)(iv) and paragraph 7(1)(z.4) do not include revenues from provincial and municipal housing authorities.

• (4) For greater certainty, the revenues referred to in subsection (3) do not include revenues from the university and college sub-sector and the health and social service institutions sub-sector.

• (5) In computing the revenue from a revenue source for a province for a fiscal year, the Minister may deduct from the amount set out in the certificate

  • (a) the amount of any rebate, credit or reduction in relation to that revenue, or its components, that the province, or a local government, grants in favour of a taxpayer for the fiscal year, as determined by Statistics Canada, or, if Statistics Canada does not make the determination, as determined by the Minister, up to a maximum that reduces the amount of the taxpayer’s tax that is included in the revenue source to zero and, for the purpose of this paragraph, if the province or a local government applies a rebate, credit or reduction against the actual or estimated liability of the taxpayer for another tax that it imposes, the amount of that rebate, credit or reduction, up to a maximum that reduces the taxpayer’s liability for that other tax to zero, may be deducted from the amount that would otherwise be determined for the revenue source that includes that other tax;

  • (b) the amount of any revenue that the province receives from a local government or any revenue that a local government receives from the province, if that amount would otherwise be included twice in the aggregate of all revenue to be equalized for all sources included in the definition revenue source in subsection 3.5(1) or 3.9(2) of the Act; and

  • (c) the amount of any revenue that the province or a local government in the province paid to itself, if that amount would otherwise be included twice in the aggregate of all revenue to be equalized for all sources included in the definition revenue source in subsection 3.5(1) or 3.9(2) of the Act.

• (6) In computing the revenues from the revenue sources described in subparagraph 4(1)(a)(ii) and paragraph 7(1)(y) for a province for a fiscal year, the amount deducted under paragraphs (5)(b) and (c) shall be the amount by which

  • (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 government sector and by the local government sector to their employees in the following industries, as determined by Statistics Canada for the purpose of its System of National Accounts:

    • (i) provincial administration,

    • (ii) local administration,

    • (iii) elementary and secondary education,

    • (iv) hospital services, and

    • (v) other institutional health and social service industries,

  is more than

  • (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 set out in the certificate.

Simulated Yield

• 10 (1) For the purpose of clauses 5(a)(i)(A) and 8(1)(a)(i)(A), the simulated yield of the average provincial personal income tax 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 turn, the amounts, aggregated over all individuals in the province, of provincial personal income tax that would be derived by the province from those individuals in the taxation year under each of the personal income tax systems of the 10 provinces as if those personal income tax systems applied to the individuals in the province;

  • (b) calculating a weight for the personal income tax system of each of the 10 provinces equal to a fraction

    • (i) whose numerator is the revenue for the fiscal year, as set out in the certificate, from the taxes described in subparagraph 4(1)(a)(i) or paragraph 7(1)(a), as the case may be, that is derived by the province with the personal income tax system for which the weight is being calculated, and

    • (ii) whose denominator is the aggregate, over the 10 provinces, of the revenue referred to in subparagraph (i);

  • (c) multiplying each amount simulated under paragraph (a) by the respective weight calculated under paragraph (b); and

  • (d) calculating the aggregate of the 10 products calculated under paragraph (c).

• (2) The following definitions apply in this section.

  current year’s adjusted federal income tax payable

  current year’s adjusted federal income tax payable means, in relation to an individual 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 computed in the following taxation year, excluding any amount related to trusts. (impôt fédéral sur le revenu rajusté à payer au cours de l’exercice)

  provincial personal income tax

  provincial personal income tax means, in relation to an individual for a taxation year, the provincial tax on the income of an individual calculated under a provincial income tax system as determined by the micro-simulation model

  • (a) after taking into account all aspects of that income tax system, including tax credits, that can be simulated for all 10 provinces on the basis of information available within, or imputable from, the micro-simulation model; and

  • (b) in the case of the income tax system of Quebec, by subtracting an amount equal to 16.5% of the current year’s adjusted federal income tax payable for that individual. (impôt provincial sur le revenue des particuliers)

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 prepare and submit the following to the Minister:

  • (a) for the fiscal year that begins on April 1, 2008, the information referred to in paragraphs (3)(a) to (c) for each of the four fiscal years prior to that fiscal year or each of the four calendar years prior to the calendar year that ends in that fiscal year, as the case may be; and

  • (b) for the fiscal year that begins on April 1, 2009 and for each following fiscal year in the fiscal arrangements period, a certificate, on or before December 1 of the fiscal year prior to that for which the certificate is submitted.

• (2) The information set out in the certificate shall

  • (a) be based on the most recent publication – or, where these Regulations require information that is not published, the most recent information prepared – by Statistics Canada on or before November 22 of the calendar year that ends in the fiscal year prior to the fiscal year for which the certificate is submitted; and

  • (b) be provided for each of the four fiscal years prior to the fiscal year for which the certificate is submitted, or each of the four calendar years prior to the calendar year that ends in the fiscal year for which the certificate is submitted, as the case may be.

• (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; and

  • (c) for each province, the revenue from each revenue source or, if the Chief Statistician of Canada is unable to differentiate between the revenue from two or more of those sources, an aggregate of the revenues of those sources.

• (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.

13 If an aggregate of two or more revenue sources is provided in a certificate, the Minister shall determine the portion of the aggregate that is to apply to each of those revenue sources.

• 14 (1) If the information required to be set out in the certificate is available, the Minister shall calculate a fiscal equalization payment on the basis of the information provided in the certificate.

• (2) If any information required to be set out in the certificate is not available, the Minister shall

  • (a) if that information is required to determine the revenue to be equalized from a revenue source for a fiscal year, estimate that revenue on the basis of any information that is available to the Minister at the time of the calculation of the fiscal equalization payment; and

  • (b) if that information is required to calculate a revenue base for a fiscal year, estimate that revenue base, by substituting in the calculation of the base the information for the latest fiscal year or calendar year, as the case may be, prior to the fiscal year for which information for the revenue base is set out in the certificate.

• (3) In the case where the Minister has made an estimate under paragraph (2)(b) of a revenue base referred to in paragraph 5(a) or (c) or any of paragraphs 8(1)(a), (d) to (f), (h), (j), (k), (z.2) and (z.3), the revenue base shall be replaced by the product of the estimate and a fraction

  • (a) whose numerator is one plus a fraction whose numerator is the province’s percentage of the population of all 10 provinces for the fiscal year and whose denominator is that percentage for the prior fiscal year for which information for the revenue base is set out in the certificate; and

  • (b) whose denominator is two.

• (4) If, in accordance with paragraph (2)(b) or subsection (3), a revenue base for a revenue source for a fiscal year is estimated or replaced on the basis of information from an earlier fiscal year, the Minister may adjust that revenue base to take into account economic factors or trends that could change the provincial share of that revenue base between that earlier fiscal year and the fiscal year.

• (5) If any of the information that is required to calculate a revenue base for a fiscal year is missing from the certificate and the Minister is unable to estimate or replace the revenue base in accordance with paragraph (2)(b) or subsection (3), the Minister shall, after consulting with Statistics Canada, estimate that revenue base on the basis of any information that is available to the Minister.

Elections

15 An election by a province under subsection 3.2(2), 3.7(3) or 3.9(6) of the Act shall be made in writing to the Minister on or before March 1 of the fiscal year for which the election is being made.

Payments

• 16 (1) If the Minister determines that a fiscal equalization payment is to be made under the Act to a province for a fiscal year, other than a payment under section 3.1 or subsection 3.7(1) of the Act, the Minister shall pay that amount to the province in 24 equal payments, with a payment occurring on each of the first and third working days after the 15th calendar day of each month of the fiscal year.

• (2) If, following an election under subsection 3.2(2), 3.7(3) or 3.9(6) of the Act, an amount of the fiscal equalization payment remains payable to the province, the Minister shall adjust the remaining payments to be made under subsection (1) such that the adjustment is apportioned equally to those remaining payments.

PART 1.1Territorial Formula Financing Payments

Interpretation

17 (1) 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 means an amount that is the difference between

• (a) the number of litres of diesel fuel,

  • (i) in the case of a territory in which tax at road-use rate is not paid throughout the calendar year, sold in the territory for use on roads, as determined by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada or, if that data is not available, on any other relevant information, and

  • (ii) in any other case, taxed at road-use rate sold in the territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002 and 405–0003, or if Statistics Canada does not make the determination, as determined by the Minister based on 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 based on any relevant information, and

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

    • (A) the number of litres of diesel fuel

      • (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 based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada, and

      • (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 publication entitled Road Motor Vehicles, Fuel Sales or, if Statistics Canada does not make the determination, as determined by the Minister, based on 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 and Newfoundland and Labrador, 0.25,

      • (VI) Nova Scotia and New Brunswick, 0.15, and

      • (VII) Manitoba, Saskatchewan, Alberta and British Columbia, zero. (nombre rajusté de litres de carburant diesel taxés au taux d’utilisation routière dans le territoire)

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 means the number of litres of gasoline taxed at road-use rate sold in the territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002 and 405-0003 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 territory where gasoline sold for use by farm trucks is taxed at road-use rate, the number of litres of gasoline sold for use by farm trucks in the territory. (nombre rajusté de litres d’essence taxés au taux d’utilisation routière dans le territoire)

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

allocated corporation taxable income attributable to the territory for the fiscal year means – in relation to a territory for a fiscal year and to a taxation year of a corporation other than a non-resident-owned investment corporation, as defined in subsection 133(8) of the Income Tax Act or a corporation that is a prescribed federal Crown corporation for the purpose of section 27 of that Act and is an agent of Her Majesty – the aggregate, computed on or before the last day of the 12th month of the calendar year following the calendar year in which the taxation year ends, of

• (a) the product of

  • (i) the aggregate, over corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the territory under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income from earlier taxation years that has not been included in its taxable income for those earlier years, and

  • (ii) a fraction

    • (A) whose numerator, being the weighted average, over the 10 provinces and the three territories, of the small business tax rate in the territory, is the aggregate, over the 10 provinces and the three territories, of the product of the effective rate of tax payable under the territory’s income tax legislation by corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act in the calendar year and a fraction whose numerator is the sum of the taxable income of those corporations that is attributable to the territory under Part IV of the Income Tax Regulations for the taxation years of those corporations that end in the calendar year that ends in the fiscal year and the amount of that taxable income for earlier taxation years that has not been included in their taxable income for those earlier years and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories, and

    • (B) whose denominator, being the weighted average, over the 10 provinces and the three territories, of the general corporate tax rate in the territory, is the aggregate, over the 10 provinces and the three territories, of the product of the general territorial corporate income tax rate in the territory in the calendar year and a fraction whose numerator is the aggregate calculated under subparagraph (b)(i) and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories, and

• (b) the difference between

  • (i) the sum of

    • (A) the aggregate, over corporations that are not eligible for a deduction under subsection 125 (1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the territory under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and the amount of that taxable income for its earlier taxation years that has not been included in its taxable income for those earlier years, and

    • (B) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was not attributable to the territory for the taxation years referred to in that paragraph because of a deduction, other than a deduction in relation to mineral resources allowed under paragraph 20(1)(v.1) of the Income Tax Act, prior to the time that the deduction ceased to have effect, and

  • (ii) the sum of

    • (A) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was attributable to the territory for the taxation years referred to in that paragraph because of the application of clause 12(1)(o)(v)(A) or (E) and clause 18(1)(m)(v)(A) or (E) and subsections 69(6) and (7) of the Income Tax Act, prior to the time that those provisions ceased to have effect, and

    • (B) the aggregate, over investment corporations and mutual fund corporations, of the sum, for each of those corporations, of its taxable income that is attributable to the territory for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income in any of its earlier taxation years to the extent that the previous taxable income has not been taken into account under this subparagraph, which aggregate, as determined by the Minister of National Revenue, is equal to the aggregate, over those corporations, of the product, for each of those corporations, of

      • (I) a fraction whose numerator is the total capital gains refund payable under the Income Tax Act to that corporation in that taxation year and any of those earlier taxation years, to the extent that the refund had not been taken into account in the calculation done under this clause for a previous fiscal year, and whose denominator 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, and

      • (II) a fraction whose numerator is that corporation’s taxable income earned in the territory during the taxation year for which the capital gains refund is payable and whose denominator is that corporation’s taxable income for that taxation year. (revenu imposable réparti des personnes morales attribuable au territoire pour l’exercice)

average tax rate

average tax rate means

• (a) for the purpose of subparagraph 19(1)(d)(i), the aggregate, over the 10 provinces and the three territories, of the product of the provincial or territorial rate of gasoline tax applicable to road-use gasoline sold in the territory during the calendar year that ends in the fiscal year and a fraction whose numerator is the adjusted number of litres of gasoline taxed at road-use rate in that territory during the calendar year that ends in the fiscal year and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories;

• (b) for the purpose of subparagraph 19(1)(d)(ii), the aggregate, over the 10 provinces and the three territories, of the product of the tax rate applicable to aviation fuel sold in the territory during the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of aviation fuel sold in that territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Road Motor Vehicle Survey – Fuel or, if Statistics Canada does not make the determination, as determined by the Minister based on any other relevant information and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories;

• (c) for the purpose of subparagraph 19(1)(d)(iii), the aggregate, over the 10 provinces and the three territories, of the product of the tax rate applicable to gasoline sold for use by farm trucks in the territory during the calendar year that ends in the fiscal year and a fraction whose numerator is the number of litres of gasoline sold for use by farm trucks in that territory and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories;

• (d) for the purpose of subparagraph 19(1)(e)(i), the aggregate, over the 10 provinces and the three territories, of the product of the territorial rate of diesel tax applicable to road-use diesel fuel sold in the territory during the calendar year that ends in the fiscal year and a fraction whose numerator is the adjusted number of litres of diesel fuel taxed at road-use rate in that territory during the calendar year that ends in the fiscal year, and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories;

• (e) for the purpose of subparagraph 19(1)(e)(ii), the aggregate, over the 10 provinces and the three territories, of the product of the tax rate applicable to railway fuel sold in the territory during the calendar year that ends in the fiscal year and a fraction

  • (i) whose numerator is

    • (A) in the case of a 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 the territory during the calendar year that ends in the fiscal year, as determined by the Minister based on any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-Demand in Canada, and

    • (B) in any other case, the number of litres of railway fuel sold in the territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada from data from its survey Road Motor Vehicle Survey — Fuel or by the Minister based on any other relevant information, and

  • (ii) whose denominator is the sum of those numerators for each of the 10 provinces and the three territories; and

• (f) for the purpose of subparagraph 19(1)(e)(iii), the aggregate, over the 10 provinces and the three territories, of the product of the tax rate that applies to diesel fuel sold for use by farm trucks in the territory and a fraction whose numerator is the number of litres of diesel fuel used by farm trucks in the territory and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories. ( taux moyen de taxe)

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; 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; 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)

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 means 200 times the number of cubic metres of diesel fuel used in the agriculture industry in the 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-Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister, based on any other relevant information. (nombre de litres de carburant diesel vendus pour consommation par des camions de ferme dans le territoire)

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 means 300 times the number of cubic metres of motor gasoline used in the agriculture industry in the 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-Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister, based on any other relevant information. (nombre de litres d’essence vendus pour consommation par des camions de ferme dans le territoire)

simulated federal income tax

simulated federal income tax means, in relation to an individual 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 micro-simulation model which, for greater certainty, excludes assessments

• (a) that, for earlier taxation years, were filed late and that, for later taxation years, were filed early; and

• (b) for trusts. (impôt fédéral sur le revenue simulé)

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; and

• (j) the Kwanlin Dun First Nation. (gouvernement autochtone spécifique du Yukon)

Revenue Source

18 The territorial revenues that constitute, or that are deemed to constitute, the revenues referred to in paragraphs (a) to (g) of the definition revenue source in subsection 4(1) of the Act are the following:

• (a) revenues derived from personal income, referred to in paragraph (a) of that definition, which are

  • (i) taxes, including a flat rate levy on income but not including a universal pension plan levy, imposed by a territory on the income of individuals who are resident in the territory on the last day of the taxation year, and

  • (ii) taxes imposed by a territory on the income of individuals who are not residents of the territory on the last day of the taxation year and who have business or employment income earned in the territory during the taxation year;

• (b) revenues derived from corporate income and government business enterprises, referred to in paragraph (b) of that definition, which are

  • (i) taxes imposed by a territory on the income of corporations earned in the territory during the taxation year, and

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

    • (A) a liquor board, commission or authority of the territory, and

    • (B) an enterprise, board, commission or authority that is engaged in the administration of a territorial lottery;

• (c) revenues derived from tobacco, referred to in paragraph (c) of that definition, which are revenues derived by a territory by means of a specific tax imposed by the territory on final purchasers of tobacco and tobacco products;

• (d) revenues derived from motive fuel taxes derived from the sale of gasoline, referred to in paragraph (d) of that definition, which are revenues derived by a territory from taxes imposed by the territory on final purchasers of gasoline used in an internal combustion engine, including aviation fuel, other than taxes on the sale of liquified petroleum gas;

• (e) revenues derived from motive fuel taxes from the sale of diesel fuel, referred to in paragraph (e) of that definition, which are revenues derived by a territory from taxes imposed by the territory on final purchasers of diesel fuel used in an internal combustion engine, including railway fuel, other than taxes on the sale of liquified petroleum gas;

• (f) revenues derived from the sale of alcoholic beverages, referred to in paragraph (f) of that definition, which are revenues derived by a territory from

  • (i) remittances to the territorial government, by a liquor board, commission or authority of the territory, of profits arising from sales of alcoholic beverages,

  • (ii) a specific sales tax imposed by the territory on the sale of alcoholic beverages by a liquor board, commission or authority of the territory, and

  • (iii) fees for licences and permits for the privilege of distilling, brewing, making, purchasing or dispensing alcoholic beverages; and

• (g) revenues derived from payroll taxes, referred to in paragraph (g) of that definition, which are taxes imposed by a territory on the payroll of employers.

Revenue Base

• 19 (1) In respect of a revenue source for a territory for a fiscal year, the definition revenue base in subsection 4(1) of the Act is more particularly defined to mean

  • (a) in the case of revenues derived from personal income, referred to in paragraph 18(a), the aggregate of

    • (i) a fraction, expressed as a percentage for the territory,

      • (A) whose numerator is the simulated yield of the average provincial and territorial personal income tax in the territory in the taxation year that ends in the fiscal year determined in accordance with subsection 21(1), and

      • (B) whose denominator is the aggregate, over the 10 provinces and the three territories, of the amount referred to in clause (A), and

    • (ii) the difference obtained by subtracting

      • (A) a fraction, expressed as a percentage for the territory,

        • (I) whose numerator is the aggregate, over all individuals in the territory – other than trusts – of the simulated federal income tax for the taxation year that ends in the fiscal year as determined by the micro-simulation model, and

        • (II) whose denominator is the aggregate, over the 10 provinces and the three territories, of the amount referred to in subclause (I),

      from

      • (B) a fraction, expressed as a percentage for the territory,

        • (I) whose numerator is the aggregate, over all individuals in the territory – 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 and the three territories, of the amount referred to in subclause (I);

  • (b) in the case of the revenues derived from corporate income and government business enterprises, referred to in paragraph 18(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 or the three 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 territory for the fiscal year, and

      • (B) whose denominator is the aggregate, over the 10 provinces and the three territories, 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 Financial Management System, of

      • (A) the aggregate, over the 10 provinces and the three territories, of the total profits that are attributable to the 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 territory, or by that territory and one or more provinces or other territories, 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, and

        • (III) of an enterprise carrying on a provincial or territorial lottery, and

      • (B) a fraction whose numerator is the amount of the total profits referred to in clause (A) for the 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 excluded under this clause for that business enterprise in relation to a previous calendar year, 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 of the numerators for each of the 10 provinces and the three territories;

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

      • (A) in the case where railway fuel is taxed in the territory throughout that year and data on the tax is complete and available, by Statistics Canada on the basis of data from its survey Road Motor Vehicle Survey – Fuel, and

      • (B) in any other case, by the Minister based on data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply-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 territory in that year;

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

    • (i) the product of the revenue derived by all provinces and territories from the sale of spirits in the fiscal year, as determined by the Minister based on information provided by the provinces, the territories and Statistics Canada, and a fraction whose numerator is the volume of spirits sold in the territory in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories,

    • (ii) the product of the revenue derived by all provinces and territories from the sale of wine in the fiscal year, as determined by the Minister based on information provided by the provinces, the territories and Statistics Canada, and a fraction whose numerator is the volume of wine sold in the territory in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories, and

    • (iii) the product of the revenue derived by all provinces and territories from the sale of beer in the fiscal year, as determined by the Minister based on information provided by the provinces, the territories and Statistics Canada, and a fraction whose numerator is the volume of beer sold in the territory in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled The Control and Sale of Alcoholic Beverages in Canada, and whose denominator is the sum of those numerators for each of the 10 provinces and the three territories; and

  • (g) in the case of revenues derived from payroll taxes, referred to in paragraph 18(g), the amount determined by the formula

    {A × [(W1 × P1) + (W2 × P2) + (W3 × P3) + (W4 × P4)] / (W × P)}+ M

    where

    A

    is 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 government sector to employees in the defence industry, and

    • (ii) the provincial and territorial government sector and the local government sector to employees in the provincial and territorial administration industry, the local government administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,

    W

    is equal to the aggregate revenue derived from payroll taxes by all provinces and territories that levy those taxes for the fiscal year, as computed by the Minister in accordance with subsections 20(4) and (6),

    W1,W2, W3 and W4

    are weightings whose value is equal to the revenue derived from payroll taxes for the fiscal year, as computed by the Minister in accordance with subsections 20(4) and (6), 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,

    P

    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 based on its survey Employment, Payrolls and Hours, other than the payrolls of

    • (i) employers not included in that survey, and

    • (ii) employers in the provincial and territorial administration industry, the local administration industry, the elementary and secondary education industry, the hospital services industry and the institutional health services industry,

    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 or territory 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 or territorial 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

    M

    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.

• (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.

General

Revenues to Be Equalized

• 20 (1) The revenues from the revenue sources described in section 18 for a territory for a fiscal year include any grant in lieu of taxes, licences, levies or fees that is paid to a territory by the Government of Canada in relation to that revenue source.

• (2) The revenues for a territory for a fiscal year from the revenue sources described in section 18 include the revenues from the provincial and territorial general government sub-sector, the local general government sub-sector and the school boards sub-sector.

• (3) For greater certainty, the revenues referred to in subsection (2) do not include those of the university and college sub-sector and the health and social service institutions sub-sector.

• (4) In computing the revenue from a revenue source for a territory for a fiscal year, the Minister may deduct from the amount set out in the certificate

  • (a) the amount of any rebate, credit or reduction in relation to that revenue, or its components, that the territory, or one of its local governments, grants in favour of a taxpayer for the fiscal year, as determined by Statistics Canada or, if Statistics Canada does not make the determination, as determined by the Minister, up to a maximum that reduces the amount of the taxpayer’s tax that is included in the revenue source to zero and, for the purpose of this paragraph, if the territory or one of its local governments applies a rebate, credit or reduction against the actual or estimated liability of the taxpayer for another tax that it imposes, the amount of that rebate, credit or reduction, up to a maximum that reduces the taxpayer’s liability for that other tax to zero, may be deducted from the amount that would otherwise be determined for the revenue source that includes that other tax;

  • (b) the amount of any revenue that the territory receives from a local government or any revenue that a local government receives from the territory, if that amount would otherwise be included twice in the sum of all revenue to be equalized for all sources included in the definition revenue source in subsection 4(1) of the Act; and

  • (c) the amount of any revenue that the territory or a local government in the territory paid to itself, if that amount would otherwise be included twice in the aggregate of all revenue to be equalized for all sources included in the definition revenue source in subsection 4(1) of the Act.

• (5) In computing the revenue from the revenue source described in paragraph 18(a) in respect of Yukon, the revenues are net of 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.

• (6) In computing the revenues from the revenue source described in subparagraph 18(1)(a)(ii) and paragraph 18(g) for a territory for a fiscal year, the amount deducted under paragraphs (4)(b) and (c) shall be the amount by which

  • (a) the product of the payroll tax rate imposed by the territory in the fiscal year and the sum of the wages and salaries paid in the territory in the calendar year that ends in the fiscal year by the provincial and territorial government sector and by the local government sector to their employees in the following industries, as determined by Statistics Canada for the purpose of its System of National Accounts:

    • (i) territorial administration,

    • (ii) local administration,

    • (iii) elementary and secondary education,

    • (iv) hospital services, and

    • (v) other institutional health and social service industries,

  is more than

  • (b) the amount of any payroll tax paid by the territory’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the territory set out in the certificate.

• (7) For the purpose of calculating a territorial formula financing payment for Yukon under subsection 4.1(1) of the Act, the revenue sources described in section 18 and the revenue bases described in subsection 19(1) do not include

  • (a) any revenues, fees or tax bases referred to in any of sections 7.30 to 7.34 of the Yukon Northern Affairs Program Devolution Transfer Agreement; and

  • (b) revenues that are Resource Revenues derived from Onshore lands, as those terms are defined in the Canada Yukon Oil and Gas Accord.

Simulated Yield

• 21 (1) For the purpose of clause 19(1)(a)(i)(A), the simulated yield of the average provincial and territorial personal income tax for the territory for a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model by,

  • (a) simulating, in turn, the amounts, aggregated over all individuals in the territory, of provincial and territorial personal income tax that would be derived by the territory from those individuals in the taxation year under each of the personal income tax systems of the 10 provinces and the three territories as if those personal income tax systems applied to the individuals in the territory;

  • (b) calculating a weight for the personal income tax system of each of the 10 provinces and the three territories equal to a fraction

    • (i) whose numerator is the revenue for the fiscal year, as set out in the certificate, from the taxes imposed by a province or territory on the income of individuals, as described in subparagraph 18(a)(i), that is derived by the territory with the personal income tax system for which the weight is being calculated, and

    • (ii) whose denominator is the aggregate, over the 10 provinces and the three territories, of the revenue referred to in subparagraph (i);

  • (c) multiplying each amount simulated under paragraph (a) by the respective weight calculated under paragraph (b); and

  • (d) calculating the aggregate of the 13 products calculated under paragraph (c).

• (2) The following definitions apply in this section.

  current year’s adjusted federal income tax payable

  current year’s adjusted federal income tax payable means, in relation to an individual 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 computed in the following taxation year, excluding any amount related to trusts. (impôt fédéral sur le revenu rajusté à payer au cours de l’exercice)

  provincial and territorial personal income tax

  provincial and territorial personal income tax means, in relation to an individual for a taxation year, the provincial or territorial tax on the income of an individual calculated under a provincial or territorial personal income tax system as determined by the micro-simulation model,

  • (a) after taking into account all provincial or territorial tax credits that can be simulated for all 10 provinces and 3 territories on the basis of information available within, or imputable from, the micro-simulation model; and

  • (b) in the case of the income tax system of Quebec, by subtracting an amount equal to 16.5% of the current year’s adjusted federal income tax payable for that individual. (impôt provincial et territorial sur le revenue des particuliers)

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

  A

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

  B

  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 government sector, as determined by the formula

    A - B - C - D + E

    where

    A

    is the gross outlay,

    B

    is the total of net capital transfers,

    C

    is the total of transfers to local governments,

    D

    is the total of capital consumption allowances, and

    E

    is the total investment in fixed capital, and

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

    F - G - H - I + J

    where

    F

    is the gross outlay,

    G

    is the total of net capital transfers,

    H

    is the total of transfers to provincial and territorial governments,

    I

    is the total of capital consumption allowances, and

    J

    is the total investment in fixed capital.

Adjustment

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

  A - (70% × B)

  where

  A

  is equal to the remittances, made by the Government of Canada to the Kwanlin Dun First Nation under the agreement, for the taxation year in which the agreement was concluded, and

  B

  is the difference between the measured yield for Yukon revenues derived from personal income, net of federal and Yukon territorial personal income tax assessed in respect of Yukon residents for the fiscal year in which the agreement was concluded, when it is

  • (a) calculated without taking into account the Yukon First Nation federal tax abatement and the Yukon First Nation territorial tax credit for the Kwanlin Dun First Nation, and

  • (b) calculated taking into account those abatements and credits.

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

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 (1) For the purposes of this Part, the Chief Statistician of Canada shall determine the population of a province in the following manner:

  • (a) for the purposes of paragraphs 28(3)(a) and 30(3)(a), on the basis of Statistics Canada’s official estimate of the population of the province on the first day of June of that fiscal year; and

  • (b) for the purposes of any other provision of this Part, on the basis of Statistics Canada’s official estimate of the population of the province on the first day of July of that fiscal year.

• (2) For greater certainty, every reference to “province” in subsection (1) includes Yukon, the Northwest Territories and Nunavut.

Certificate

• 28 (1) The Chief Statistician of Canada shall prepare and submit the following to the Minister:

  • (a) for the fiscal year that begins on April 1, 2008, the information referred to in paragraphs (3)(a) to (c) for each of the four fiscal years prior to that fiscal year or each of the four calendar years prior to the calendar year that ends in that fiscal year, as the case may be; and

  • (b) for the fiscal year that begins on April 1, 2009 and for each following fiscal year in the fiscal arrangements period, a certificate, on or before December 1 of the fiscal year prior to that for which the certificate is submitted.

• (2) The information set out in the certificate shall

  • (a) be based on the most recent publication – or, where these Regulations require information that is not published, the most recent information prepared – by Statistics Canada on or before November 22 of the calendar year that ends in the fiscal year prior to the fiscal year for which the certificate is submitted; and

  • (b) be provided for each of the four fiscal years prior to the fiscal year for which the certificate is submitted, or each of the four calendar years prior to the calendar year that ends in the fiscal year for which certificate is submitted, as the case may be.

• (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;

  • (d) for each territory, the revenue from each revenue source or, if the Chief Statistician of Canada is unable to differentiate between the revenue from two or more of those sources, an aggregate of the revenues of those sources; 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.

29 If an aggregate of two or more revenue sources is provided in a certificate, the Minister shall determine the portion of the aggregate that is to apply to each of those revenue sources.

• 30 (1) If the information required to be set out in the certificate is available, the Minister shall calculate a territorial formula financing payment on the basis of the information provided in the certificate.

• (2) If any information required to be set out in the certificate is not available, the Minister shall

  • (a) if that information is required to determine the revenue to be equalized from a revenue source for a fiscal year, estimate that revenue on the basis of any information that is available to the Minister at the time of the calculation of the territorial formula financing payment; and

  • (b) if that information is required to calculate a revenue base for a revenue source for a fiscal year, estimate that revenue base, by substituting in the calculation of the base the information for the latest fiscal year or calendar year, as the case may be, prior to the fiscal year for which information for the revenue base is set out in the certificate.

• (3) In the case where the Minister has made an estimate under paragraph (2)(b) of a revenue base referred to in any of paragraphs 19(1)(a), (c), (d) or (f), the revenue base shall be replaced by the product of the estimate and a fraction

  • (a) whose numerator is one plus a fraction whose numerator is the territory’s percentage of the population of all 10 provinces and the three territories for the fiscal year and whose denominator is that percentage for the prior fiscal year for which information for the revenue base is set out in the certificate; and

  • (b) whose denominator is two.

• (4) If, in accordance with paragraph (2)(b) or subsection (3), a revenue base for a fiscal year is estimated or replaced on the basis of information from an earlier fiscal year, the Minister may adjust that revenue base to take into account economic factors or trends that could change the territorial share of that revenue base between that earlier fiscal year and the fiscal year.

• (5) If any of the information that is required to calculate a revenue base for a fiscal year is missing from the certificate and the Minister is unable to estimate or replace the revenue base in accordance with paragraph (2)(b) or subsection (3), the Minister shall, after consulting with Statistics Canada, estimate that revenue base on the basis of any information that is available to the Minister.

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, other than a payment under subsection 4.1(2) of the Act, 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.

PART 2Fiscal 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 paragraph 6(1)(b) 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.

• 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 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 subsection 6(3) of the Act, based on 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 subsection 6(5) of the Act, based on 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, based on the information that the province provides to the Minister in its application as adjusted by the Minister, if necessary, and 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.

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.

• 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 3Recovery 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, 2014, calculate the net aggregate of overpayments to be recovered from that province by determining

  • (a) the net total of all underpayments and overpayments in relation to the following payments made under the Act, any regulations made under the Act or a tax collection agreement concluded under the Act:

    • (i) fiscal equalization payments that are shown in that fiscal year to have been made in relation to each previous fiscal year within the period beginning on April 1, 1994 and ending on March 31, 2006, and

    • (ii) income tax payments under tax collection agreements and fiscal stabilization payments that are shown in that fiscal year to have been made in relation to each previous fiscal year within the period beginning on April 1, 1994 and ending on March 31, 2013; 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 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

  • (a) for a fiscal year within the period beginning on April 1, 2007 and ending on March 31, 2009, $130 per capita; and

  • (b) for a fiscal year within the period beginning on April 1, 2009 and ending on March 31, 2014, $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 that year’s net aggregate of overpayments for the province.

• (4) Despite subsection (2), if any portion of the deferred outstanding balance remains outstanding at the end of the second fiscal year following that in which payment was first made by the province, that balance shall be recovered during the fiscal year that immediately follows that second fiscal year and, for greater certainty, that balance shall not be taken into account when calculating the net aggregate of overpayments for that immediately following fiscal year.

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 4Consequential 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.