Federal-Provincial Fiscal Arrangements Regulations, 2007 (SOR/2007-303)

Interpretation

• 1 (1) The following definitions apply in these Regulations.

  Act

  Act means the Federal-Provincial Fiscal Arrangements Act. (Loi)

  adjusted number of litres of diesel fuel taxed at road-use rate

  adjusted number of litres of diesel fuel taxed at road-use rate means, in respect of a province or territory, the amount that is the difference between

  • (a) the number of litres of diesel fuel that are,

    • (i) in the case of a province or territory in which tax at road-use rate is not paid throughout the calendar year, sold in the province or territory for use on roads, as determined by the Minister on the basis of data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada or, if that data is not available, on the basis of any other relevant information, or

    • (ii) in any other case, taxed at road-use rate and sold in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of table 23-10-0066-01, Sales of fuel used for road motor vehicles, annual (× 1,000), or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information; and

  • (b) the number that is,

    • (i) in the case of Ontario, the number of litres of diesel fuel sold for use by farm trucks in Ontario, as determined by the Minister on the basis of any relevant information, or

    • (ii) in the case of any other province or a territory, the product of

      • (A) the number of litres of diesel fuel that are,

        • (I) in the case of a province or territory in which tax at road-use rate is not paid throughout the calendar year, sold in the province or territory for use on roads, as determined by the Minister on the basis of any relevant information, including data prepared by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada, or

        • (II) in any other case, taxed at road-use rate in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its survey Gasoline and Other Petroleum Fuels Sold, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information, and

      • (B) in the case of

        • (I) Nunavut, 0.91,

        • (II) the Northwest Territories, 0.8,

        • (III) Yukon, 0.31,

        • (IV) Prince Edward Island, 0.3,

        • (V) Quebec or Newfoundland and Labrador, 0.25,

        • (VI) Nova Scotia or New Brunswick, 0.15, and

        • (VII) Manitoba, British Columbia, Saskatchewan or Alberta, zero. (nombre rajusté de litres de carburant diesel taxés au taux d’utilisation routière)

  adjusted number of litres of gasoline taxed at road-use rate

  adjusted number of litres of gasoline taxed at road-use rate means, in respect of a province or territory, the number of litres of gasoline taxed at road-use rate that are sold in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of table 23-10-0066-01, Sales of fuel used for road motor vehicles, annual (× 1,000), or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any relevant information, including the revenues of those sales divided by that tax rate minus, in the case of a province or territory where gasoline that is sold for use by farm trucks is taxed at road-use rate, the number of litres of gasoline that are sold for use by farm trucks in the province or territory. (nombre rajusté de litres d’essence taxés au taux d’utilisation routière)

  assessed market value of commercial-industrial property

  assessed market value of commercial-industrial property means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of non-residential property other than farm property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from the Census of Agriculture and from information regarding property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure inter-jurisdictional comparability. (valeur marchande estimée des propriétés foncières commerciales-industrielles)

  assessed market value of residential property

  assessed market value of residential property means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of residential property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from information regarding residential property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure inter-jurisdictional comparability. (valeur marchande estimée des propriétés foncières résidentielles)

  business sector

  business sector means that sector as defined by Statistics Canada for the purpose of its System of Macroeconomic Accounts. (secteur des entreprises)

  CANSIM table

  CANSIM table means a table published by Statistics Canada showing information from its Canadian socio-economic information management (CANSIM) database. (tableau CANSIM)

  federal general government sector

  federal general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur de l’administration publique générale fédérale)

  federal government sector

  federal government sector[Repealed, SOR/2013-225, s. 1]

  federal income tax as determined by the micro-simulation model

  federal income tax as determined by the micro-simulation model means, in relation to an individual — not including a trust — in a province or territory for a taxation year, the amount of tax otherwise payable under this Part in respect of that year, as defined in subsection 120(4) of the Income Tax Act, as determined by means of the micro-simulation model. (impôt fédéral sur le revenu déterminé par le modèle de microsimulation)

  Financial Management System

  Financial Management System[Repealed, SOR/2013-225, s. 1]

  fiscal arrangements period

  fiscal arrangements period[Repealed, SOR/2008-318, s. 2]

  Government Finance Statistics

  Government Finance Statistics means the Canadian Government Finance Statistics used by Statistics Canada. (statistiques de finances publiques)

  health and social service institutions sub-sector

  health and social service institutions sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des institutions de services de santé et de services sociaux)

  household final consumption expenditure category

  household final consumption expenditure category means any of the household consumption expenditure series categories as defined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts. (catégorie de dépenses de consommation finale des ménages)

  housing expenditure category

  housing expenditure category[Repealed, SOR/2018-131, s. 1]

  local general government sector

  local general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales locales)

  local general government sub-sector

  local general government sub-sector[Repealed, SOR/2013-225, s. 1]

  local government sector

  local government sector[Repealed, SOR/2013-225, s. 1]

  local government sub-sector

  local government sub-sector means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques locales)

  micro-simulation model

  micro-simulation model means the model maintained by the Department of Finance to simulate the assessment of personal income taxes based on information from T1 tax returns for a taxation year provided to that Department by the Canada Revenue Agency. (modèle de microsimulation)

  provincial and territorial general government sector

  provincial and territorial general government sector means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales provinciales et territoriales)

  provincial and territorial general government sub-sector

  provincial and territorial general government sub-sector[Repealed, SOR/2013-225, s. 1]

  provincial and territorial government sector

  provincial and territorial government sector[Repealed, SOR/2013-225, s. 1]

  provincial and territorial government sub-sector

  provincial and territorial government sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques provinciales et territoriales)

  publication

  publication means an official printed or electronic release of information to the public. (publication)

  public or non-profit entity category

  public or non-profit entity category[Repealed, SOR/2018-131, s. 1]

  school boards sub-sector

  school boards sub-sector means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des commissions scolaires)

  taxation year

  taxation year means a taxation year as defined in the Income Tax Act. (année d’imposition)

  taxes on products

  taxes on products means the amount determined by Statistics Canada, for the purpose of its System of Macroeconomic Accounts, that corresponds to the sum of taxes on products, whether imposed by a provincial, territorial, local or Aboriginal government, and the federal goods and services tax. (taxes sur les produits)

  universities and colleges sub-sector

  universities and colleges sub-sector means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des universités et des collèges)

  university and college sub-sector

  university and college sub-sector[Repealed, SOR/2013-225, s. 1]

  working day

  working day means a day that is not a Saturday or a holiday. (jour ouvrable)

• (2) In these Regulations, the words gas, hydrocarbon and oil have the same meaning as in subsection 2(1) of the Energy Administration Act.

• (3) In these Regulations, a reference by a specific title or identification number to a publication or other document prepared by Statistics Canada includes a reference to any other publication or document that is prepared by Statistics Canada in lieu of, or in substitution for it.

• (4) In these Regulations, a reference to a business enterprise of a province or territory means a government business enterprise, as that term is used by Statistics Canada for the purpose of its System of Macroeconomic Accounts.

• (5) In Parts 1, 1.1 and 2, province does not include Yukon, the Northwest Territories or Nunavut.

Application

• 2 (1) Parts 1 and 1.1 of these Regulations apply to payments that may be made under Parts I and I.1 of the Act for a fiscal year beginning on or after April 1, 2014.

• (2) Part 2 of these Regulations applies to payments that may be made under Part II of the Act for a fiscal year beginning on or after April 1, 2012.

2.1 Despite any other provision of these Regulations, for the purpose of determining a revenue source or a revenue base under Part 1 or 1.1, there shall be excluded from the revenue of Ontario any amount obtained through a debt retirement charge levied under Part V.1 of the Electricity Act, 1998, S.O. 1998, c. 15, Sched. A, and from the revenue of Nova Scotia any amount levied on electricity consumption exclusively for the purpose of repaying the debt managed by the Nova Scotia Power Finance Corporation.

PART 1Fiscal Equalization Payments

Interpretation

3 The following definitions apply in this Part.

allocated corporation taxable income attributable to the province for the fiscal year

allocated corporation taxable income attributable to the province for the fiscal year means, in relation to a province for a fiscal year, the amount, calculated in respect of corporations — other than non-resident-owned investment corporations, as defined in subsection 133(8) of the Income Tax Act, and corporations that are prescribed federal Crown corporations for the purpose of section 27 of that Act and are agents of Her Majesty — on the basis of assessments or reassessments completed by the Canada Revenue Agency no later than December 31 of the calendar year that ends in the following fiscal year, determined by the formula

A + (D × W)

where

A

is the amount determined by the formula

B - C

where

B

is the sum of the corporations’ taxable income earned in the province within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are not eligible for a deduction under subsection 125(1) of the Income Tax Act, and

C

is the aggregate, over all assessments and reassessments completed in respect of investment corporations or mutual fund corporations, of the amounts determined by the formula

G/H

where

G

is the capital gains refund payable to the corporation under the Income Tax Act that constitutes income earned in the province within the meaning of Part IV of the Income Tax Regulations for the corporation’s taxation year ending in the calendar year that ends in the fiscal year or for any earlier taxation year for which the refund was not taken into account in this calculation in relation to a previous fiscal year, and

H

is the percentage referred to in paragraph (a) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) of the Income Tax Act that applies to the taxation year for which the capital gains refund is payable,

D

is the sum of the corporations’ taxable income earned in the province within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are eligible for a deduction under subsection 125(1) of the Income Tax Act, and

W

is the amount determined by the formula

E/F

where

E

is the aggregate, over all provinces, of the amounts determined by the formula

I × (D/J)

where

I

is the small business tax rate under the province’s income tax legislation that applies, as a result of the application of the provincial small business deduction, to income in respect of which the corporation is eligible for that deduction in the calendar year that ends in the fiscal year,

D

is the amount determined for D in the first formula in this definition, and

J

is the aggregate, over all provinces, of the amounts determined for D, and

F

is the aggregate, over all provinces, of the amounts determined by the formula

K × (A/L)

where

K

is each province’s general corporate income tax rate for the calendar year that ends in the fiscal year,

A

is the amount determined for A in the first formula in this definition, and

L

is the aggregate, over all provinces, of the amounts determined for A. (revenu imposable réparti des personnes morales attribuable à la province pour l’exercice)

assessed market value of residential property

assessed market value of residential property[Repealed, SOR/2013-225, s. 3]

business sector industry

business sector industry[Repealed, SOR/2013-225, s. 3]

capital expenditures for machinery and equipment

capital expenditures for machinery and equipment[Repealed, SOR/2013-225, s. 3]

capital expenditures for non-residential construction

capital expenditures for non-residential construction[Repealed, SOR/2013-225, s. 3]

certificate

certificate means the certificate referred to in section 12. (certificat)

Crown land

Crown land means, in relation to a province, land vested in Her Majesty in right of the province. (terres domaniales)

electricity enterprise

electricity enterprise means the following corporations and authorities:

• (a) British Columbia Hydro and Power Authority;

• (b) Columbia Power Corporation;

• (c) [Repealed, SOR/2008-318, s. 3]

• (d) Hydro Quebec;

• (e) Manitoba Hydro;

• (e.1) NB Power;

• (e.2) [Repealed, SOR/2018-131, s. 3]

• (f) Newfoundland and Labrador Hydro;

• (g) Ontario Power Generation; and

• (h) SaskPower. (société d’électricité)

federal income tax payable

federal income tax payable means, in relation to an individual – including a mutual fund trust – in a province for a taxation year, the amount of “tax otherwise payable under this Part”, as defined in subsection 120(4) of the Income Tax Act, as determined by the Canada Revenue Agency in the following taxation year

• (a) including additional amounts assessed for previous taxation years that were not included in the earlier amounts assessed for those years;

• (b) including additional amounts assessed for subsequent taxation years that will not be included in the amounts assessed for those years; and

• (c) excluding any amount related to refunds of federal capital gain taxes on a mutual fund trust assessed on or after December 31, 2002 for the fiscal year beginning on April 1, 2001. (impôt fédéral sur le revenu à payer)

games of chance

games of chance include

• (a) games that involve the sale of any type of lottery ticket, including

  • (i) conventional on-line and off-line lottery tickets,

  • (ii) instant lottery tickets, including scratch-and-win tickets and break-open tickets, and

  • (iii) sports-betting tickets;

• (b) games that are played on video lottery terminals;

• (c) games that are played on slot machines;

• (d) games played at casinos; and

• (e) bingo. (jeux de hasard)

housing expenditure category

housing expenditure category[Repealed, SOR/2013-225, s. 3]

housing expenditures

housing expenditures[Repealed, SOR/2013-225, s. 3]

hydrocarbon deposits

hydrocarbon deposits means naturally occurring hydrocarbon deposits. (gisements d’hydrocarbures)

intermediate input commodity

intermediate input commodity[Repealed, SOR/2013-225, s. 3]

intermediate input expenditures

intermediate input expenditures[Repealed, SOR/2013-225, s. 3]

minerals

minerals[Repealed, SOR/2013-225, s. 3]

net provincial sales tax revenues

net provincial sales tax revenues[Repealed, SOR/2013-225, s. 3]

new oil

new oil[Repealed, SOR/2013-225, s. 3]

non-business sector industry

non-business sector industry[Repealed, SOR/2013-225, s. 3]

personal expenditure category

personal expenditure category[Repealed, SOR/2013-225, s. 3]

personal expenditures

personal expenditures[Repealed, SOR/2013-225, s. 3]

private land

private land means, in relation to a province, land other than its Crown land, including land in the province that is vested in Her Majesty in right of Canada. (terres privées)

simulated federal income tax

simulated federal income tax[Repealed, SOR/2013-225, s. 3]

third tier oil

third tier oil[Repealed, SOR/2013-225, s. 3]