Federal-Provincial Fiscal Arrangements Regulations, 2007

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.