Federal-Provincial Fiscal Arrangements Regulations, 2007
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.
- Date modified: