Federal-Provincial Fiscal Arrangements Regulations, 2007

9 (1) The revenues from the revenue sources described in subsections 4(1) and 7(1) for a province for a fiscal year include any grant in lieu of taxes, licences, levies or fees that is paid to a province by the Government of Canada in relation to that revenue source and that is not otherwise specifically included in those subsections.

(2) In computing the revenues from the revenue sources described in paragraphs 4(1)(a) and 7(1)(a) in respect of Manitoba and Ontario for a fiscal year, the revenues are not reduced by the amount of any recoveries from those provinces in respect of overpayments of capital gains taxes pursuant to a tax collection agreement.

(3) The revenues for a province for a fiscal year from the revenue sources described in subsections 4(1) and 7(1) include the revenues from the provincial and territorial general government sub-sector, the local general government sub-sector and the school boards sub-sector. However, revenues from the revenue sources described in subparagraph 4(1)(d)(iv) and paragraph 7(1)(z.4) do not include revenues from provincial and municipal housing authorities.

(4) For greater certainty, the revenues referred to in subsection (3) do not include revenues from the university and college sub-sector and the health and social service institutions sub-sector.

(5) In computing the revenue from a revenue source for a province for a fiscal year, the Minister may deduct from the amount set out in the certificate

• (a) the amount of any revenue that the province or a local government 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 3.5(1) or 3.9(1) of the Act; and

• (b) the amount of any revenue that the province receives from a local government or any revenue that a local government receives from the province, 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 3.5(1) or 3.9(1) of the Act.

• (c) [Repealed, SOR/2008-318, s. 9]

(6) In computing the revenues from the revenue sources described in subparagraph 4(1)(a)(ii) and paragraph 7(1)(y) for a province for a fiscal year, the amount deducted under paragraphs (5)(b) and (c) shall be the amount by which

• (a) the product of the payroll tax rate imposed by the province in the fiscal year and the sum of the wages and salaries paid in the province 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) provincial 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 province’s government departments that the Chief Statistician of Canada has excluded from the payroll tax revenue for the fiscal year for the province set out in the certificate.

(7) In computing the revenue from a revenue source for a province for a fiscal year, the Minister may

• (a) in relation to a revenue source referred to in paragraph (e) of the definition revenue source in subsection 3.5(1) of the Act or in paragraphs (l) to (w) of that definition in subsection 3.9(1) of the Act, adjust the amount set out in the certificate by adding or deducting the amount of any expense, subsidy, rebate or tax reduction incurred or granted by the government of that province in relation to that revenue source, if those amounts have not been added to or deducted from, as the case may be, the amount set out in the certificate in respect of that revenue source; and

• (b) in relation to any other revenue source, deduct from the amount set out in the certificate the amount of any rebate, credit or reduction in relation to that revenue, or its components, that the province, or a local government, granted 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 province or a local government 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.