Canada Health and Social Transfer Regulations
SOR/97-468
FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT
Registration 1997-10-09
Canada Health and Social Transfer Regulations
P.C. 1997-1463 1997-10-09
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 40Footnote a of the Federal-Provincial Fiscal Arrangements ActFootnote b, hereby makes the annexed Canada Health and Social Transfer Regulations.
Return to footnote aS.C. 1997, c. 10, s. 264
Return to footnote bS.C. 1995, c. 17, s. 45(1)
Interpretation
1 The definitions in this section apply in these Regulations.
- Act
Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)
- population of a province for a fiscal year
population of a province for a fiscal year means the population of a province for a fiscal year as determined in accordance with section 2. (population d’une province pour un exercice)
- taxation year
taxation year means a taxation year within the meaning of the Income Tax Act. (année d’imposition)
- Transfer
Transfer means the Canada Health and Social Transfer. (Transfert)
Determination of Population of a Province
2 Subject to subsection 5(7), the population of a province for a fiscal year shall be determined by the Chief Statistician of Canada on the basis of Statistics Canada’s official estimate of the population of that province on the first day of June of that fiscal year.
Determination of Gross Domestic Product
3 The gross domestic product of Canada for a calendar year shall be determined by the Chief Statistician of Canada on the basis of Statistics Canada’s official estimate of the gross domestic product of Canada at market prices for that calendar year.
Calculation of Equalized Tax Transfer
4 (1) For the purposes of clause 16(1)(b)(ii)(A) of the Act, the relevant revenue bases for a province for a fiscal year shall be determined as follows:
(a) with respect to personal income taxes, by aggregating
(i) 75% of the assessed federal individual income tax applicable to the province for the taxation year ending in the fiscal year, as determined by the Minister of National Revenue, and
(ii) 25% of the assessed federal individual income tax applicable to the province for the taxation year beginning in the fiscal year, as determined by the Minister of National Revenue; and
(b) with respect to corporation income taxes, by aggregating
(i) 75% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that ends in the fiscal year, and
(ii) 25% of the aggregate of taxable income earned in the taxation year in the province, as determined by the Minister of National Revenue under subsection 124(4) of the Income Tax Act, for all corporations having a taxation year ending in the calendar year that begins in the fiscal year.
(2) For the purposes of clause 16(1)(b)(ii)(B) of the Act, the amount of equalization referred to in subparagraph 16(1)(b)(ii) of the Act shall be adjusted in the following manner:
(a) if subsection 4(6) of the Act applies in respect of a province for the fiscal year, the amount of equalization shall be increased by the amount determined by the formula
P × [A × C/B]
and
(b) if subsection 4(9) of the Act applies in respect of the fiscal year, the amount of equalization determined in accordance with subparagraph 16(1)(b)(ii) of the Act and increased in accordance with paragraph (a), if applicable, shall be reduced by the amount determined by the formula
P × [A × D/B]
where
- P
- is the population of a province for a fiscal year;
- A
- is the average per capita yield in the provinces of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan for the revenue sources referred to in subsection 16(2) of the Act for the fiscal year;
- B
- is the average per capita yield in the provinces of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan for all revenue sources for the fiscal year, under subsection 4(1) of the Act;
- C
- is the amount by which
(a) the equalization payment for the province determined in accordance with subsection 4(6) of the Act divided by the population of the province for that fiscal year
exceeds
(b) the equalization payment for the province, determined in accordance with subsection 4(1) of the Act, divided by the population of the province for that fiscal year; and
- D
- is the quotient determined under paragraph 4(9)(d) of the Act for the fiscal year.
Interim Estimates
5 (1) In respect of each fiscal year,
(a) the Minister shall make an estimate of the amount, if any, of the Transfer that is payable pursuant to the Act to a province for the fiscal year
(i) before April 16 of that fiscal year,
(ii) during the period beginning on the first day of September and ending on the twelfth day of October of that fiscal year,
(iii) during the period beginning on the twelfth day of January and ending on the last day of February of that fiscal year,
(iv) during the period beginning on the first day of September and ending on the twelfth day of October of the first fiscal year following the end of that fiscal year,
(v) during the period beginning on the twelfth day of January and ending on the last day of February of the first fiscal year following the end of that fiscal year,
(vi) during the period beginning on the first day of September and ending on the twelfth day of October of the second fiscal year following the end of that fiscal year, and
(vii) during the period beginning on the twelfth day of January and ending on the last day of February of the second fiscal year following the end of that fiscal year; and
(b) where, in the opinion of the Minister, there is new information available that may have a significant effect on the amount of the Transfer that is payable pursuant to the Act to one or more provinces, the Minister may alter an estimate of the amount, if any, of the Transfer that is payable pursuant to the Act for the fiscal year to a province
(i) during the second quarter of that fiscal year,
(ii) during March of that fiscal year, and
(iii) during any period beginning on the first day of the final month of a quarter and ending on the twelfth day of the subsequent quarter, other than the periods specified in paragraph (a), following the end of the fiscal year, until such time as the final computation pursuant to subsection 6(2) is completed.
(2) Where an estimate made pursuant to subparagraph (1)(a)(i) shows that a Transfer is payable to a province for a fiscal year, the Minister shall pay to the province, on account of the final payment in respect of that fiscal year, an amount equal to one twenty-fourth of the amount so estimated on the first and third working days following the fifteenth calendar day of each month in that fiscal year.
(3) Where an estimate made pursuant to subparagraph (1)(a)(ii) or (iii) or (b)(i) establishes that the amounts payable to the province pursuant to the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall
(a) if any amount remains payable to the province, adjust the remaining payments referred to in subsection (2) in respect of that fiscal year in accordance with the new estimate, beginning with the first payment in the month following the month during which that estimate was calculated; and
(b) if an overpayment has been made to the province, recover the amount of that overpayment before the end of the fiscal year.
(4) Where an estimate made pursuant to subparagraph (1)(a) (iv), (v), (vi) or (vii) or (b) (iii)
(a) establishes that an underpayment has been made to the province, the Minister shall pay the amount of the underpayment to the province within the four months following the month during which the estimate was made; and
(b) establishes that an overpayment has been made to the province, the Minister shall recover the amount of that overpayment within the four months following the month during which the estimate was made.
(5) Where an estimate made pursuant to subparagraph (1)(b)(ii) establishes that the amounts payable to the province pursuant to the immediately preceding estimate in respect of that fiscal year should be revised, the Minister shall
(a) if any amount remains payable to the province, pay to the province that amount in the month during which the estimate was made or, where the province so requests, pay the province that amount within the four months following the month during which the estimate was made; and
(b) if an overpayment has been made to the province, recover the amount of that overpayment in the month during which the estimate was made or, where the province so requests, recover the amount within the four months following that month.
(6) Where an estimate discloses an overpayment to a province in respect of a fiscal year, the Minister may, subject to paragraph (3)(b), (4)(b) or (5)(b), recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
(7) For the purpose of making an estimate under subsection (1), the population of a province for a fiscal year is the population of that province on the first day of June of that fiscal year as estimated by the Minister on the basis of population statistics made available to the Minister by the Chief Statistician of Canada.
- SOR/2000-59, s. 1
Final Computation
6 (1) The Chief Statistician of Canada shall, in respect of each fiscal year, prepare and submit to the Minister, not later than 30 months after the end of that fiscal year, a certificate in respect of that fiscal year based on the most recent information prepared by Statistics Canada for that fiscal year, setting out
(a) in respect of each province, the population of the province for each of the fiscal years required by the Act; and
(b) beginning with the fiscal year 2000-2001, the gross domestic product of Canada for a calendar year, determined in accordance with section 3, for the calendar years required by the Act.
(2) Within 30 days after the receipt by the Minister of the certificate submitted by the Chief Statistician of Canada pursuant to subsection (1) in respect of a fiscal year, the Minister shall make the final computation on the basis of the information contained in that certificate of the amount, if any, of the Transfer that is payable for that fiscal year pursuant to the Act to a province and the Minister shall subsequently furnish each province with tables setting out the details of that computation.
(3) Where, as a result of a final computation made pursuant to subsection (2), there remains an outstanding amount payable to a province in respect of a fiscal year, the Minister shall pay to the province the outstanding amount.
(4) Where a final computation made pursuant to subsection (2) discloses an overpayment to a province in respect of a fiscal year, the Minister shall recover the amount of that overpayment
(a) from any amount payable to the province under the Act; or
(b) from the province as a debt due to Her Majesty in right of Canada.
Coming into Force
7 These Regulations come into force on October 9, 1997.
- Date modified: