Federal-Provincial Fiscal Arrangements Regulations, 2007

18 The territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (g) of the definition revenue source in subsection 4(1) of the Act are

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

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

  • (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,

    • (B) an enterprise 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 territorial lottery;

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

• (d) in the case of revenues derived from motive fuel taxes from the sale of gasoline referred to in paragraph (d) of that definition, 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 liquefied petroleum gas;

• (e) in the case of revenues derived from motive fuel taxes from the sale of diesel fuel referred to in paragraph (e) of that definition, 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 liquefied petroleum gas;

• (f) in the case of revenues derived from the sale of alcoholic beverages referred to in paragraph (f) of that definition, 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) in the case of revenues derived from payroll taxes referred to in paragraph (g) of that definition, taxes imposed by a territory on the payroll of employers.