Federal-Provincial Fiscal Arrangements Act (R.S.C. 1970, c. F-6)

Short Title

Marginal note:Short title

1 This Act may be cited as the Federal-Provincial Fiscal Arrangements Act.

Interpretation

Marginal note:Definitions

2 In this Act

fiscal year

fiscal year means the period of twelve months commencing on the 1st day of April and ending on the 31st day of March next following; (année financière)

former Act

former Act means the Federal-Provincial Fiscal Arrangements Act, chapter 58 of the Statutes of Canada, 1960-61; (loi antérieure)

Minister

Minister means the Minister of Finance; (Ministre)

prescribed

prescribed means prescribed by regulation; (prescrit)

province

province does not include the Northwest Territories or the Yukon Territory. (province)

PART IEqualization, Stabilization and Succession Duty Payments

Marginal note:Provincial revenue equalization payments

3 Subject to this Act, the Minister may pay to a province, for each fiscal year in the period commencing on the 1st day of April 1967 and ending on the 31st day of March 1972, a provincial revenue equalization payment not exceeding the amount computed in accordance with section 7.

Marginal note:Provincial revenue stabilization payments

4 Subject to this Act, the Minister may pay to a province, for each fiscal year commencing on or after the 1st day of April 1967, a provincial revenue stabilization payment not exceeding the amount computed in accordance with section 10.

Marginal note:Succession duty payments

• 5 (1) The Minister may, for each fiscal year commencing on or after the 1st day of April 1967, pay to a province that does not levy a succession duty as defined by regulation in respect of successions or transmissions consequent upon, or on property passing upon, any death occurring in the fiscal year, an amount equal to the basic estate tax applicable to the province for the fiscal year.

• Marginal note:Idem

  (2) The Minister may, for each fiscal year commencing on or after the 1st day of April 1967, pay to a province that levies a succession duty as defined by regulation in respect of successions or transmissions consequent upon, or on property passing upon, any death occurring in the fiscal year, if that province does not increase its succession duties in the fiscal year beyond the rates thereof in effect on the 31st day of March 1964, an amount equal to one-third of the basic estate tax applicable to the province for the fiscal year.

• Basic estate tax

  (3) In this section basic estate tax as applied to a province for a fiscal year means the amount, as determined by the Minister, that would be derived from a tax equal to seventy-five per cent of the total amount of estate tax payable pursuant to the Estate Tax Act in respect of

  • (a) property situated in the province and included in the estates of persons dying in the fiscal year domiciled in the province,

  • (b) property situated in the province and included in the estates of persons dying in the fiscal year domiciled outside the province, and

  • (c) property (other than real property) situated outside Canada, passing to persons domiciled or resident in the province and included in the estates of persons dying in the fiscal year domiciled in the province.

Marginal note:C.R.F.

6 The amounts authorized to be paid by sections 3, 4 and 5 shall be paid out of the Consolidated Revenue Fund at such times and in such manner as may be prescribed.

Provincial Revenue Equalization Payments

Marginal note:Provincial revenue equalization payments

7 The provincial revenue equalization payment that may be paid to a province for a fiscal year is an amount equal to

• (a) the general equalization applicable to the province for the fiscal year computed in accordance with section 8,

• (b) in the case of a province to which a grant was paid under subsection 3(2) of the former Act in respect of the fiscal year commencing on the 1st day of April 1966, the guaranteed equalization applicable to the province for the fiscal year computed in accordance with subsection 9(1), or

• (c) in the case of the Province of Saskatchewan and in respect of each fiscal year in the period commencing on the 1st day of April 1967 and ending on the 31st day of March 1971, the guaranteed equalization applicable to the province for the fiscal year computed in accordance with subsection 9(2),

whichever is the greatest.

Marginal note:General equalization

• 8 (1) The general equalization applicable to a province for a fiscal year is an amount, as determined by the Minister, equal to the product obtained by multiplying the population of the province for the fiscal year by the amount, if any, that will cause

  • (a) the per capita amount derived by dividing

    • (i) the aggregate of the products obtained by multiplying the national average provincial revenue rate for each revenue source for the fiscal year by the revenue base for that revenue source for the province for the fiscal year,

    by

    • (ii) the population of the province for the fiscal year,

  to equal

  • (b) the per capita amount derived by dividing

    • (i) the aggregate of the products obtained by multiplying the national average provincial revenue rate for each revenue source for the fiscal year by the revenue base for that revenue source for all the provinces for the fiscal year,

    by

    • (ii) the total population of all the provinces for the fiscal year.

• Marginal note:Definitions

  (2) In this section

  fiscal period

  fiscal period for a revenue source means such period as may be prescribed, in the case of that revenue source, for the purpose of determining the national average provincial revenue rate for that revenue source for a fiscal year; (exercice financier)

  national average provincial revenue rate

  national average provincial revenue rate for a revenue source for a fiscal year is the rate derived by dividing

  • (a) the total revenue, as determined by the Minister, from that revenue source for all the provinces for the fiscal period prescribed in the case of that revenue source,

  by

  • (b) the total revenue base, as determined by the Minister, for that revenue source for all the provinces for the fiscal period prescribed in the case of that revenue source; (taux national moyen du revenu provincial)

  revenue base

  revenue base for a revenue source for a province for a fiscal year has the meaning given to that expression by regulation; (base de revenu)

  revenue source

  revenue source means any of the following sources, as more particularly defined by regulation, from which provincial revenues are or may be derived, namely:

  • (a) personal income tax,

  • (b) corporation income tax,

  • (c) succession duties and shares of estate tax,

  • (d) general sales tax,

  • (e) motor fuel tax,

  • (f) motor vehicle revenues,

  • (g) alcoholic beverage revenues,

  • (h) forestry revenues,

  • (i) oil royalties,

  • (j) natural gas royalties,

  • (k) sales of Crown leases and reservations on oil and natural gas lands,

  • (l) oil and gas revenues, other than those described in paragraphs (i), (j) and (k),

  • (m) metallic and non-metallic mineral revenues,

  • (n) water power rentals,

  • (o) provincial taxes, other than those described in any of paragraphs (a) to (n), and

  • (p) miscellaneous provincial revenues. (source de revenu)

• Marginal note:Application

  (3) In determining for the purposes of the definition national average provincial revenue rate in subsection (2) the revenue from the revenue source described in paragraph (a) of the definition revenue source in subsection (2) for a province for a fiscal year, the Minister may deduct from the amount that but for this subsection would have been the revenue therefrom the estimated amount, as determined by the Minister, by which the revenues derived by Canada from individual income taxes for the taxation year ending in that fiscal year under the Income Tax Act are less than the revenues that would have been derived from such taxes for that taxation year if no additional amounts had been deductible under section 33 of that Act, in the case of individuals resident in that province in that taxation year,

  • (a) in consequence of the province providing schooling allowances within the meaning of the Youth Allowances Act, and

  • (b) in consequence of the application to that province of the Established Programs (Interim Arrangements) Act.

• Marginal note:Determination of population

  (4) For purposes of this section

  • (a) the population of a province

    • (i) for a calendar year in which a census thereof was taken, is the population as ascertained by the census, and

    • (ii) for any other calendar year, is the population on the 1st day of June in that year as estimated by the Dominion Statistician on the assumption that the population changed by the same number of persons annually between censuses; and

  • (b) the population of a province for a fiscal year is the population determined in accordance with this subsection for the calendar year in which the fiscal year begins.

Marginal note:Guaranteed equalization

• 9 (1) The guaranteed equalization applicable to a province referred to in paragraph 7(b) for a fiscal year is an amount equal to the aggregate of

  • (a) the amounts payable to the province under subsections 3(1) and (2) of the former Act in respect of the fiscal year commencing on the 1st day of April 1966,

  • (b) in the case of the Provinces of Nova Scotia, New Brunswick and Newfoundland, the amount of ten and one-half million dollars each, and

  • (c) in the case of the Province of Prince Edward Island, the amount of three and one-half million dollars.

• Marginal note:Saskatchewan transitional payments

  (2) The guaranteed equalization applicable to the Province of Saskatchewan for a fiscal year is an amount, as determined by the Minister, equal to the product obtained by multiplying the amount payable to the Province of Saskatchewan under subsection 3(1) of the former Act in respect of the fiscal year commencing on the 1st day of April 1966, by the following fraction:

  • (a) in respect of the fiscal year commencing on April 1, 1967, four-fifths;

  • (b) in respect of the fiscal year commencing on April 1, 1968, three-fifths;

  • (c) in respect of the fiscal year commencing on April 1, 1969, two-fifths; and

  • (d) in respect of the fiscal year commencing on April 1, 1970, one-fifth.

Provincial Revenue Stabilization Payments

Marginal note:Provincial revenue stabilization payments

• 10 (1) The provincial revenue stabilization payment that may be paid to a province for a fiscal year is the amount, as determined by the Minister, by which

  • (a) ninety-five per cent of the net general revenue of the province for the immediately preceding fiscal year

  exceeds

  • (b) the adjusted current net general revenue of the province for the fiscal year.

• Marginal note:Definitions

  (2) In this section

  adjusted current net general revenue

  adjusted current net general revenue, as applied to a province for a fiscal year, means the net general revenue for the fiscal year adjusted in prescribed manner on the basis of the revenue rates and revenue structure of the province in effect for the immediately preceding year; (revenu général net courant ajusté)

  net general revenue

  net general revenue, as applied to a province for a fiscal year, means the net general revenue for the fiscal year as shown in the table “Net General Revenue for Fiscal Year” in the publication of the Dominion Bureau of Statistics entitled “Provincial Government Finance, Revenue and Expenditure”, altered in prescribed manner to reflect

  • (a) the average revenue of the province from the revenue source described in paragraph (c) of the definition revenue source in subsection 8(2) for that and the two immediately preceding fiscal years, and

  • (b) the average revenue of the province from the revenue source described in paragraph (k) of the definition revenue source in subsection 8(2) for that and the four immediately preceding fiscal years,

  and minus any amount deductible under subsection 8(3) in determining the revenue of the province for the fiscal year from the revenue source referred to in that subsection. (revenu général net)

• Marginal note:Application to be made

  (3) A provincial revenue stabilization payment may be paid to a province in respect of a fiscal year only upon receipt by the Minister, not later than eighteen months after the end of the fiscal year, of an application by the province therefor containing such information as may be prescribed.

PART IIPost-Secondary Education Adjustment Payments

Marginal note:Definitions

• 11 (1) In this Part

  adjustment payment

  adjustment payment means a post-secondary education adjustment payment referred to in section 12; (paiement de rajustement)

  educational institution

  educational institution means an institution of learning that offers courses at a post-secondary level; (établissement d’enseignement)

  federal revenue abatement relating to post-secondary education

  federal revenue abatement relating to post-secondary education applicable to a province for a fiscal year has the meaning given to that expression by section 15; (abattement du revenu fédéral relatif à l’enseignement post-secondaire)

  junior matriculation

  junior matriculation, in respect of a province, has the meaning given to that expression by regulation; (immatriculation junior)

  operating expenditures

  operating expenditures for post-secondary education in a province in a fiscal year has the meaning given to that expression by section 14; (frais de fonctionnement)

  post-secondary education

  post-secondary education, in respect of a province, means every course of studies in the province that

  • (a) requires for admission the attainment of a level not lower than that of junior matriculation in the province,

  • (b) is of not less than twenty-four weeks duration, and

  • (c) has been certified as a course of studies at a post-secondary level by such person or persons as may be designated by the Lieutenant Governor in Council of the province for such purpose; (enseignement post-secondaire)

  post-secondary level

  post-secondary level has the meaning given to that expression by regulation. (niveau post-secondaire)

• Marginal note:Determination of population and financial year

  (2) For the purposes of this Part

  • (a) the population of a province for a calendar year is the population on the 1st day of June in that year as estimated by the Dominion Statistician; and

  • (b) a financial year of an educational institution is related to a fiscal year if more than one-half of the total number of days in the financial year fall within the fiscal year.