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

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.