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

• 33.1 (1) The Chief Statistician of Canada shall, on or before December 1 of each year, prepare and submit to the Minister a certificate that sets out

  • (a) the population of Canada as of July 1 of the year in which the certificate is submitted and of each previous year beginning with 2018;

  • (b) the population of each province as of July 1 of the year in which the certificate is submitted and of the two previous years;

  • (c) the nominal gross domestic product of Canada for the calendar year before the year in which the certificate is submitted and for each previous calendar year beginning with 2018; and

  • (d) for each province, information from the Government Finance Statistics regarding the revenues described in section 7, other than those described in paragraph 7(1)(a), subparagraph 7(1)(b)(i), paragraph 7(1)(z.4) and subparagraphs 7(1)(z.5)(i) and (ii), for the fiscal year that ends in the calendar year in which the certificate is submitted and for each of the two previous fiscal years.

• (2) The information set out in the certificate shall be based on the most recent publication of Statistics Canada — or the most recent information of Statistics Canada if the publication is not available, its contents have been superseded by more recent information or these Regulations require information that is not published — that is available on or before November 22 of the year in which the certificate is submitted.

• (3) The Chief Statistician of Canada shall indicate in the certificate, as the case may be,

  • (a) any amount that is set out in the certificate that represents the aggregate of two or more revenue sources; and

  • (b) any information that is required to be set out in the certificate that is not available.

• 33.2 (1) When determining, for the purpose of subsection 6(3) or subparagraph 6(4)(a)(i) or (ii) of the Act, the total revenue derived by a province for a fiscal year from a revenue source described in the definition revenue source in subsection 3.9(1) of the Act, the Minister shall use the following information that is available as of the second December 1 following the end of that fiscal year:

  • (a) in respect of revenues from personal income taxes, as described in paragraph 7(1)(a), and corporation income taxes, as described in subparagraph 7(1)(b)(i), for a province that has entered into a tax collection agreement respecting those taxes, the information that is available to the Minister for the administration of the tax collection agreement; and

  • (b) in respect of all other revenues described in subsection 7(1), the information contained in the province’s application and the information set out in the certificate referred to in section 33.1.

• (2) If any information referred to in subsection (1) is incorrect, missing or unavailable, the Minister may use in place of that information an estimate based on any information that is available to the Minister at the time of the determination.

• 34 (1) For the purpose of paragraph 6(5)(b) of the Act, the total amount of provincial personal income taxes that are payable as the result of assessments or reassessments made in a calendar year is equal to the sum of

  • (a) all provincial personal income taxes that are assessed or reassessed in that year, net of all corresponding provincial non-refundable tax credits, non-refundable tax rebates, income tax reductions and capital gains refunds,

  • (b) in respect of a province that has entered into a tax collection agreement respecting personal income tax, the province’s share of unapplied payments for the previous calendar year, as estimated in accordance with the tax collection agreement, and

  • (c) in respect of a province that has not entered into a tax collection agreement respecting personal income tax, the amounts — net of the value of any special abatement referred to in subsection 3.9(2) of the Act — that have not been assessed as of December 31 of the calendar year and that were, according to the information returns submitted by employers and other payers to the province during the one-year period beginning on March 1 of the previous calendar year, deducted at source as personal income tax for the province for any previous calendar year.

• (1.1) For the purpose of paragraph 6(5)(c) of the Act, the total amount of provincial corporation income taxes that are payable as the result of assessments or reassessments made in a calendar year is equal to the sum of all provincial corporation income taxes that are assessed or reassessed in that year, net of all corresponding provincial non-refundable tax credits, non-refundable tax rebates, capital gains refunds and tax remission orders and of the corresponding provincial small business deduction.

• (1.2) For greater certainty, for the purpose of paragraph (1)(a) and subsection (1.1), if a reassessment results in a greater amount of tax payable than the initial assessment or the most recent previous reassessment, as the case may be, the difference — not the full amount of the reassessment — is to be added to the sum referred to in those provisions. If it results in a lesser amount payable, the difference is to be subtracted from that sum.

• (2) In computing the revenue derived by a province from a revenue source for a fiscal year, other than from the revenue sources referred to in paragraphs 7(1)(a) and (b), the Minister may deduct from that revenue source the amounts referred to in paragraph 9(1)(b), without taking into account the reference to subsection 3.5(1) of the Act in subsection 9(1).

• (3) For the purpose of this Part, in computing the revenue derived by a province from a revenue source, the Minister may make any adjustment that is necessary to take into account

  • (a) any change between the accounting practices used in the public accounts of the province in a fiscal year for which an application for a fiscal stabilization payment has been received and those used in the province in the immediately preceding fiscal year; or

  • (b) any change between the methodology of Statistics Canada used for reporting revenue derived by a province from a revenue source in a fiscal year for which an application for a fiscal stabilization payment has been received and that used in the immediately preceding fiscal year.

35 A province may make an application signed by its Minister of Finance or Treasurer for the payment of advances on account of fiscal stabilization payments for a fiscal year that may become payable to the province. The application shall be

• (a) based on information on revenues that relate to the first five months or more of the fiscal year; and

• (b) supported by the comparative revenue information that is available to the province for the period referred to in paragraph (a) and for the corresponding period of the previous fiscal year, including information that relates to any changes in the revenue that is subject to stabilization that results from changes either in the rates or in the structures of provincial taxes or other modes of raising the revenue of the province from those that were in effect during the immediately preceding fiscal year.

• 36 (1) The Minister may, after receiving from a province a completed application referred to in section 32 or 35 for a fiscal year, make one or more estimates of any amount that may become payable to that province in respect of fiscal stabilization for that fiscal year.

• (2) If the Minister estimates that a fiscal stabilization payment is to be paid to the province, the Minister may make one or more advance payments to the province on account of that payment, but the cumulative total of those advances shall not be more than the limit referred to in subsection 6(8) of the Act.

• 37 (1) An amount lent to a province under subsection 6(9) of the Act is repayable or recoverable in 60 equal monthly instalments, the first of which becomes due and payable 30 days after the day on which the amount is lent.

• (2) Despite anything in this Part, if an amount is lent to a province before the last day of February of the fiscal year for which an application has been received, that amount shall be repayable or recoverable in equal monthly instalments on the first and third working days after the 15th calendar day of each month of the fiscal year throughout the period beginning on the April that immediately follows the lending of that amount and ending five years after the day on which that amount was lent.

• 38 (1) The Minister shall make a final computation of any fiscal stabilization payment that may be paid to a province for a fiscal year under section 6 of the Act within 21 months after the end of the fiscal year for which an application under that section is made and shall provide the province with a statement that describes the manner in which that computation was made.

• (2) If the amount of the final computation of the fiscal stabilization payment to be paid is more than the total amount of advance payments made under subsection 36(2), the Minister shall, subject to the limit set out in subsection 6(8) of the Act, pay the difference between those amounts to the province.

39 Subject to sections 37 and 41, the Minister may, in whole or in part, deduct the amount of an overpayment made in relation to a fiscal stabilization payment made to a province from any amount that is payable to that province under the Act. Any amount of the overpayment that is not deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.

• 40 (1) If the Minister determines that an amount lent to a province under subsection 6(9) of the Act is more than the difference between the fiscal stabilization payment calculated under subsections 6(1) to (6) of the Act and the limit for that payment determined in accordance with subsection 6(8) of the Act, the amount of the difference shall be deducted from any amount payable to the province under the Act. Any amount of that difference that is not deducted may be recovered from the province as a debt due to Her Majesty in right of Canada.

• (2) An amount that is repaid by, or recovered from, the province under section 37 before the deduction or recovery referred to in subsection (1) reduces the balance that would otherwise have been determined to be outstanding on a loan to a province made under subsection 6(9) of the Act.

• (3) On making a deduction or recovery referred to in subsection (1), each monthly instalment that otherwise would be due and payable under section 37 is reduced to the quotient that results from dividing the difference between the balance referred to in subsection (2) and the amount of the deduction or recovery by the number of instalments remaining to be paid.

PART 3Recovery of Net Overpayments

• 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 $174 per capita, based on the population of the province as determined under section 11.

• (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.

42 The prescribed amounts referred to in section 3.95 of the Act are equal monthly amounts required to repay the payment referred to in that section over the period beginning on April 1, 2007 and ending on March 31, 2016.

PART 4Consequential Amendment, Repeals and Coming into Force

Consequential Amendment

43 [Amendment]

Repeals

44 [Repeals]

Coming into Force

45 These Regulations come into force on the day on which they are registered.