Federal-Provincial Fiscal Arrangements Act

Marginal note:Territorial formula financing payments

• 4.1 (1) Subject to the other provisions of this Act, there may be paid to a territory a territorial formula financing payment not exceeding the amounts determined under this Part for each fiscal year in the period beginning on April 1, 2014 and ending on March 31, 2029.

• (2) [Repealed, 2013, c. 33, s. 123]

• Marginal note:Subsequent fiscal years

  (3) Subject to the other provisions of this Part, the territorial formula financing payment that may be paid to a territory for a fiscal year beginning after March 31, 2008 is equal to the amount, as determined by the Minister, by which

  • (a) the aggregate of the gross expenditure base and the superannuation adjustment for that territory for that fiscal year

  is greater than

  • (b) the eligible revenues for that territory for that fiscal year.

• Marginal note:Adjusted gross expenditure base

  (4) For the purpose of paragraph (3)(a), for the fiscal year beginning on April 1, 2014, the gross expenditure base is equal to the amount determined by the formula

  A + 0.7 (B + C + D + E – F – G – H)

  where

  A

  is the gross expenditure base that would, in the absence of this subsection, be calculated for the fiscal year;

  B

  is equal to the average adjusted yield calculated for revenues relating to personal income;

  C

  is equal to the average yield calculated for revenues relating to corporate income and government business enterprises;

  D

  is equal to the average yield calculated for revenues derived from property taxes and miscellaneous revenues;

  E

  is equal to the average yield calculated for revenues relating to consumption taxes excluding revenues derived from excise taxes;

  F

  is $63,891,572 in respect of Yukon, $125,998,429 in respect of the Northwest Territories and $104,674,613 in respect of Nunavut;

  G

  is equal to the average yield calculated for revenues derived from personal income; and

  H

  is equal to the average yield calculated for revenues derived from corporate income and government business enterprises.

• Marginal note:Definitions

  (5) The following definitions apply in this subsection and in subsection (4).

  average adjusted yield

  average adjusted yield means, in respect of revenues relating to personal income of a territory for the fiscal year beginning on April 1, 2014, the amount determined by the formula

  (A + B + C) / 3

  where

  A

  is the yield for that revenue source for the fiscal year beginning on April 1, 2012, calculated by adjusting the national average rate of tax for that fiscal year to exclude the revenues to be equalized adjustment for that fiscal year from the aggregate of the revenue to be equalized for that revenue source for the fiscal year for all provinces and territories;

  B

  is the yield for that revenue source for the fiscal year beginning on April 1, 2011, calculated by adjusting the national average rate of tax for that fiscal year to exclude the revenues to be equalized adjustment for that fiscal year from the aggregate of the revenue to be equalized for that revenue source for the fiscal year for all provinces and territories; and

  C

  is the yield for that revenue source for the fiscal year beginning on April 1, 2010, calculated by adjusting the national average rate of tax for that fiscal year to exclude the revenues to be equalized adjustment for that fiscal year from the aggregate of the revenue to be equalized for that revenue source for the fiscal year for all provinces and territories. (rendement rajusté moyen)

  average yield

  average yield means, in respect of a given revenue source of a territory for the fiscal year beginning on April 1, 2014, the amount determined by the formula

  (A + B + C) / 3

  where

  A

  is the yield for that revenue source for the fiscal year beginning on April 1, 2012, that yield being calculated, in respect of G and H of the formula provided for in subsection (4), in accordance with the provisions of this Act and the regulations as they read on December 17, 2012;

  B

  is the yield for that revenue source for the fiscal year beginning on April 1, 2011, that yield being calculated, in respect of G and H of the formula provided for in subsection (4), in accordance with the provisions of this Act and the regulations as they read on December 17, 2012; and

  C

  is the yield for that revenue source for the fiscal year beginning on April 1, 2010, that yield being calculated, in respect of G and H of the formula provided for in subsection (4), in accordance with the provisions of this Act and the regulations as they read on December 17, 2012. (rendement moyen)

  revenues to be equalized adjustment

  revenues to be equalized adjustment means the amount determined by the Minister for the fiscal year that corresponds to the amount, for all taxpayers, of any rebate, credit or reduction in relation to revenue relating to personal income that a territory, province or one of their local governments grant in favour of a taxpayer for the fiscal year, up to a maximum that reduces to zero the amount of the taxpayer’s tax that is included in that revenue source for that fiscal year. (rajustement de revenus sujets à péréquation)