Federal-Provincial Fiscal Arrangements Regulations, 2007

33 (1) The Minister shall make the adjustment for a fiscal year referred to in subsection 6(2) 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) 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 certain goods or services shall not be considered, for the purpose of subsection (1), to be a change in the rate or in the structure of that tax or other mode.