Federal-Provincial Fiscal Arrangements Act

Marginal note:Eligibility for payments

• 12.2 (1) No payment may be made under this Part to a province for a fiscal year unless

  • (a) pursuant to a tax collection agreement, Canada has undertaken for the calendar year ending in the fiscal year to collect taxes imposed by the province under an Act of the legislature of the province imposing a tax on the income of corporations; or

  • (b) the Act of the legislature of the province imposing a tax on the income of corporations provides, in the opinion of the Minister, for a deduction in computing taxable income of a corporation for taxation years ending in the fiscal year of an amount that is not less than the amount deductible by the corporation for the year under paragraph 110(1)(k) of the Income Tax Act.

• Marginal note:Idem

  (2) No payment may be made under this Part to a province for a fiscal year where, in the opinion of the Minister, the province imposes or purports to impose a tax payable by corporations for taxation years ending in the fiscal year that is identical or similar to the taxes imposed under Parts IV.1 and VI.1 of the Income Tax Act.