Federal-Provincial Fiscal Arrangements Regulations, 2007

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, 2029, calculate the net aggregate of overpayments to be recovered from that province by adding

• (a) the net total of all underpayments and overpayments in relation to the following payments made under the Act or a tax collection agreement concluded under the Act, that are shown in that fiscal year to have been made in relation to each previous year within the period beginning on April 1, 1994 and ending on March 31, 2028:

  • (i) fiscal equalization payments, other than additional fiscal equalization payments made under section 3.71 of the Act,

  • (ii) fiscal stabilization payments, and

  • (iii) income tax payments under tax collection agreements; 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 equalization payments, 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 $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 the net total referred to in paragraph (1)(a) for that following fiscal year.

(4) Despite subsection (2), if any portion of the deferred outstanding balance remains outstanding at the end of the second fiscal year following the fiscal year in which the recovery of that net aggregate of overpayments was first subject to the amounts set out in subsection (2), it shall be recovered during the fiscal year that immediately follows that second fiscal year.