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

Application

• 2 (1) Parts 1 and 1.1 of these Regulations apply to payments that may be made under Parts I and I.1 of the Act for a fiscal year beginning on or after April 1, 2014.

• (2) Part 2 of these Regulations applies to payments that may be made under Part II of the Act for a fiscal year beginning on or after April 1, 2012.

2.1 Despite any other provision of these Regulations, for the purpose of determining a revenue source or a revenue base under Part 1 or 1.1, there shall be excluded from the revenue of Ontario any amount obtained through a debt retirement charge levied under Part V.1 of the Electricity Act, 1998, S.O. 1998, c. 15, Sched. A, and from the revenue of Nova Scotia any amount levied on electricity consumption exclusively for the purpose of repaying the debt managed by the Nova Scotia Power Finance Corporation.

PART 1Fiscal Equalization Payments

Interpretation

3 The following definitions apply in this Part.

allocated corporation taxable income attributable to the province for the fiscal year

allocated corporation taxable income attributable to the province for the fiscal year means, in relation to a province for a fiscal year, the amount, calculated in respect of corporations — other than non-resident-owned investment corporations, as defined in subsection 133(8) of the Income Tax Act, and corporations that are prescribed federal Crown corporations for the purpose of section 27 of that Act and are agents of Her Majesty — on the basis of assessments or reassessments completed by the Canada Revenue Agency no later than December 31 of the calendar year that ends in the following fiscal year, determined by the formula

A + (D × W)

where

A

is the amount determined by the formula

B - C

where

B

is the sum of the corporations’ taxable income earned in the province within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are not eligible for a deduction under subsection 125(1) of the Income Tax Act, and

C

is the aggregate, over all assessments and reassessments completed in respect of investment corporations or mutual fund corporations, of the amounts determined by the formula

G/H

where

G

is the capital gains refund payable to the corporation under the Income Tax Act that constitutes income earned in the province within the meaning of Part IV of the Income Tax Regulations for the corporation’s taxation year ending in the calendar year that ends in the fiscal year or for any earlier taxation year for which the refund was not taken into account in this calculation in relation to a previous fiscal year, and

H

is the percentage referred to in paragraph (a) of the description of A in the definition refundable capital gains tax on hand in subsection 131(6) of the Income Tax Act that applies to the taxation year for which the capital gains refund is payable,

D

is the sum of the corporations’ taxable income earned in the province within the meaning of Part IV of the Income Tax Regulations for their taxation years ending in the calendar year that ends in the fiscal year — and for earlier taxation years, if that taxable income was not counted in their taxable income for those earlier years — in respect of which they are eligible for a deduction under subsection 125(1) of the Income Tax Act, and

W

is the amount determined by the formula

E/F

where

E

is the aggregate, over all provinces, of the amounts determined by the formula

I × (D/J)

where

I

is the small business tax rate under the province’s income tax legislation that applies, as a result of the application of the provincial small business deduction, to income in respect of which the corporation is eligible for that deduction in the calendar year that ends in the fiscal year,

D

is the amount determined for D in the first formula in this definition, and

J

is the aggregate, over all provinces, of the amounts determined for D, and

F

is the aggregate, over all provinces, of the amounts determined by the formula

K × (A/L)

where

K

is each province’s general corporate income tax rate for the calendar year that ends in the fiscal year,

A

is the amount determined for A in the first formula in this definition, and

L

is the aggregate, over all provinces, of the amounts determined for A. (revenu imposable réparti des personnes morales attribuable à la province pour l’exercice)

assessed market value of residential property

assessed market value of residential property[Repealed, SOR/2013-225, s. 3]

business sector industry

business sector industry[Repealed, SOR/2013-225, s. 3]

capital expenditures for machinery and equipment

capital expenditures for machinery and equipment[Repealed, SOR/2013-225, s. 3]

capital expenditures for non-residential construction

capital expenditures for non-residential construction[Repealed, SOR/2013-225, s. 3]

certificate

certificate means the certificate referred to in section 12. (certificat)

Crown land

Crown land means, in relation to a province, land vested in Her Majesty in right of the province. (terres domaniales)

electricity enterprise

electricity enterprise means the following corporations and authorities:

• (a) British Columbia Hydro and Power Authority;

• (b) Columbia Power Corporation;

• (c) [Repealed, SOR/2008-318, s. 3]

• (d) Hydro Quebec;

• (e) Manitoba Hydro;

• (e.1) NB Power;

• (e.2) [Repealed, SOR/2018-131, s. 3]

• (f) Newfoundland and Labrador Hydro;

• (g) Ontario Power Generation; and

• (h) SaskPower. (société d’électricité)

federal income tax payable

federal income tax payable means, in relation to an individual – including a mutual fund trust – in a province for a taxation year, the amount of “tax otherwise payable under this Part”, as defined in subsection 120(4) of the Income Tax Act, as determined by the Canada Revenue Agency in the following taxation year

• (a) including additional amounts assessed for previous taxation years that were not included in the earlier amounts assessed for those years;

• (b) including additional amounts assessed for subsequent taxation years that will not be included in the amounts assessed for those years; and

• (c) excluding any amount related to refunds of federal capital gain taxes on a mutual fund trust assessed on or after December 31, 2002 for the fiscal year beginning on April 1, 2001. (impôt fédéral sur le revenu à payer)

games of chance

games of chance include

• (a) games that involve the sale of any type of lottery ticket, including

  • (i) conventional on-line and off-line lottery tickets,

  • (ii) instant lottery tickets, including scratch-and-win tickets and break-open tickets, and

  • (iii) sports-betting tickets;

• (b) games that are played on video lottery terminals;

• (c) games that are played on slot machines;

• (d) games played at casinos; and

• (e) bingo. (jeux de hasard)

housing expenditure category

housing expenditure category[Repealed, SOR/2013-225, s. 3]

housing expenditures

housing expenditures[Repealed, SOR/2013-225, s. 3]

hydrocarbon deposits

hydrocarbon deposits means naturally occurring hydrocarbon deposits. (gisements d’hydrocarbures)

intermediate input commodity

intermediate input commodity[Repealed, SOR/2013-225, s. 3]

intermediate input expenditures

intermediate input expenditures[Repealed, SOR/2013-225, s. 3]

minerals

minerals[Repealed, SOR/2013-225, s. 3]

net provincial sales tax revenues

net provincial sales tax revenues[Repealed, SOR/2013-225, s. 3]

new oil

new oil[Repealed, SOR/2013-225, s. 3]

non-business sector industry

non-business sector industry[Repealed, SOR/2013-225, s. 3]

personal expenditure category

personal expenditure category[Repealed, SOR/2013-225, s. 3]

personal expenditures

personal expenditures[Repealed, SOR/2013-225, s. 3]

private land

private land means, in relation to a province, land other than its Crown land, including land in the province that is vested in Her Majesty in right of Canada. (terres privées)

simulated federal income tax

simulated federal income tax[Repealed, SOR/2013-225, s. 3]

third tier oil

third tier oil[Repealed, SOR/2013-225, s. 3]

DIVISION 1Fiscal Equalization to the Provinces

Interpretation

3.1 The following definitions apply in this Division.

business sector industry

business sector industry means any of the business sector industries as defined by Statistics Canada

• (a) with respect to capital expenditures, for the purpose of its Provincial Supply and Use Tables’ detailed level final demand matrix; and

• (b) with respect to intermediate input expenditures, for the purpose of its Provincial Supply and Use Tables’ summary level intermediate input matrix. (industrie du secteur des entreprises)

capital expenditures

capital expenditures means expenditures on commodities, as determined by Statistics Canada for the purpose of its Provincial Supply and Use Tables’ summary level final demand matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe)

capital expenditures for intellectual property products

capital expenditures for intellectual property products means the gross fixed capital formation in intellectual property products, as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any own-account expenditures and any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les produits de propriété intellectuelle)

capital expenditures for machinery and equipment

capital expenditures for machinery and equipment means the gross fixed capital formation in machinery and equipment, as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour machines et matériel)

capital expenditures for non-residential structures

capital expenditures for non-residential structures means the gross fixed capital formation in non-residential structures, as determined by Statistics Canada on the basis of data for or from its System of Macroeconomic Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)

commodity

commodity means any of the commodities as defined by Statistics Canada for the purpose of its Provincial Supply and Use Tables’ summary level final demand matrix. (produit de base)

household final consumption expenditures

household final consumption expenditures means,

• (a) in the case of expenditures relating to property insurance, accident and sickness insurance, auto insurance or life insurance, the gross premiums paid by insured individuals for that insurance, net of any taxes on products, as determined by Statistics Canada;

• (b) in the case of expenditures relating to used vehicles, the amount paid by individuals for those vehicles, net of any taxes on products, as determined by Statistics Canada; and

• (c) in the case of any other expenditures, household final consumption expenditures as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses de consommation finale des ménages)

housing expenditure category

housing expenditure category means any of the following expenditure categories used by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts:

• (a) expenditures, as determined by Statistics Canada, for residential housing, including the land, for

  • (i) new singles,

  • (ii) new doubles,

  • (iii) new rows,

  • (iv) new apartments,

  • (v) conversions,

  • (vi) cottages, and

  • (vii) mobile homes and other movable dwellings;

• (b) expenditures for residential renovation; and

• (c) expenditures for residential housing transfer. (catégorie de dépenses de logement)

housing expenditures

housing expenditures means expenditures, net of any taxes on products as determined by Statistics Canada, on

• (a) residential housing, including the land, as determined by Statistics Canada for

  • (i) new singles,

  • (ii) new doubles,

  • (iii) new rows,

  • (iv) new apartments,

  • (v) conversions,

  • (vi) cottages, and

  • (vii) mobile homes and other movable dwellings;

• (b) residential renovations as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts; and

• (c) residential housing transfers as determined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts.(dépenses de logement)

intermediate input

intermediate input means any of the intermediate inputs as defined by Statistics Canada for the purpose of its Provincial Supply and Use Tables’ summary level intermediate input matrix. (intrant intermédiaire)

intermediate input commodity

intermediate input commodity[Repealed, SOR/2018-131, s. 4]

intermediate input expenditures

intermediate input expenditures means expenditures on intermediate inputs, as determined by Statistics Canada for the purpose of its Provincial Supply and Use Tables’ summary level intermediate input matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)

net provincial sales tax revenues

net provincial sales tax revenues means revenues described in subparagraphs 4(1)(c)(i) and (ii), net of any provincial sales tax rebates. (recettes de taxe de vente provinciale nettes)

non-business sector industry

non-business sector industry[Repealed, SOR/2018-131, s. 4]

post-secondary educational services

post-secondary educational services means universities, colleges and C.E.G.E.P.s as defined by Statistics Canada for the purpose of its Provincial Supply and Use Tables’ detailed level intermediate input matrix. (services d’enseignement postsecondaire)

post-secondary education or non-profit industry

post-secondary education or non-profit industry means either of the following industries as defined by Statistics Canada:

• (a) for the purpose of its Provincial Supply and Use Tables’ detailed level intermediate input matrix, with respect to the post-secondary educational services industry; or

• (b) for the purpose of its Provincial Supply and Use Tables’ summary level intermediate input matrix, with respect to the non-profit institutions serving households industry. (industrie de l’éducation postsecondaire ou à but non lucratif)

public education or non-profit entity category

public education or non-profit entity category means either of the following categories, used by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts:

• (a) government education services; or

• (b) non-profit organizations. (catégorie des services gouvernementaux d’enseignement ou des organismes à but non lucratif)