Federal-Provincial Fiscal Arrangements Regulations, 2007
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 and to a taxation year of a corporation other than a non-resident-owned investment corporation, as defined in subsection 133(8) of the Income Tax Act, or a corporation that is a prescribed federal Crown corporation for the purpose of section 27 of that Act and is an agent of Her Majesty – the aggregate, computed on or before the last day of the 12th month of the calendar year following the calendar year in which the taxation year ends, of
(a) the product of
(i) the aggregate, over corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income from earlier taxation years that has not been included in its taxable income for those earlier years, and
(ii) a fraction
(A) whose numerator, being the weighted average, over the 10 provinces, of the small business tax rate in the province, is the aggregate, over the 10 provinces, of the product of the effective rate of tax payable under the province’s income tax legislation by corporations that are eligible for a deduction under subsection 125(1) of the Income Tax Act in the calendar year and a fraction whose numerator is the sum of the taxable income of those corporations that is attributable to the province under Part IV of the Income Tax Regulations for the taxation years of those corporations that end in the calendar year that ends in the fiscal year and the amount of that taxable income for earlier taxation years that has not been included in their taxable income for those earlier years and whose denominator is the sum of those numerators for each of the 10 provinces, and
(B) whose denominator, being the weighted average, over the 10 provinces, of the general corporate tax rate in the province, is the aggregate, over the 10 provinces, of the product of the general provincial corporate income tax rate in the province in the calendar year and a fraction whose numerator is the aggregate calculated under subparagraph (b)(i) and whose denominator is the sum of those numerators for each of the 10 provinces, and
(b) the difference between
(i) the sum of
(A) the aggregate, over corporations that are not eligible for a deduction under subsection 125 (1) of the Income Tax Act, of the sum, for each of those corporations, of the corporation’s taxable income that is attributable to the province under Part IV of the Income Tax Regulations for its taxation years that end in the calendar year that ends in the fiscal year and the amount of that taxable income for its earlier taxation years that has not been included in its taxable income for those earlier years, and
(B) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was not attributable to the province for the taxation years referred to in that paragraph because of a deduction other than a deduction in relation to mineral resources allowed under paragraph 20(1)(v.1) of the Income Tax Act, prior to the time that the deduction ceased to have effect, and
(ii) the sum of
(A) the aggregate, over the corporations referred to in paragraph (a), of their taxable income that the Minister determines, based on information provided by the Minister of National Revenue, was attributable to the province for the taxation years referred to in that paragraph because of the application of clause 12(1)(o)(v)(A) or (E) and clause 18(1)(m)(v)(A) or (E) and subsections 69(6) and (7) of the Income Tax Act, prior to the time that those provisions ceased to have effect, and
(B) the aggregate, over investment corporations and mutual fund corporations, of the sum, for each of those corporations, of its taxable income that is attributable to the province for its taxation years that end in the calendar year that ends in the fiscal year and its taxable income in any of its earlier taxation years to the extent that the previous taxable income has not been taken into account under this subparagraph, which aggregate, as determined by the Minister of National Revenue, is equal to the aggregate, over those corporations, of the product, for each of those corporations, of
(I) a fraction whose numerator is the total capital gains refund payable under the Income Tax Act to that corporation in that taxation year and any of those earlier taxation years, to the extent that the refund had not been taken into account in the calculation done under this clause for a previous fiscal year, and whose denominator is the percentage referred to in paragraph (a) 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, and
(II) a fraction whose numerator is that corporation’s taxable income earned in the province during the taxation year for which the capital gains refund is payable and whose denominator is that corporation’s taxable income for that taxation year. (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 means, in relation to a province for a calendar year, the estimated market value of all residential property in the province as determined by the Minister on the basis of
(a) for the fiscal year 2008-09 and for each fiscal year prior to the fiscal year for which the data referred to in paragraph (b) first becomes available, estimates of the market value of residential properties for the 2001 calendar year produced by the Department of Finance from data on residential property assessments for tax purposes from municipal assessment agencies and adjusted from 2001 levels to reflect residential property values for the appropriate calendar year; and
(b) for fiscal years beginning with the 2009-10 fiscal year or the first fiscal year for which the data described in this paragraph becomes available, and for all subsequent fiscal years in the fiscal arrangements period, data compiled by Statistics Canada from information on residential property assessments for tax purposes obtained by Statistics Canada from municipal assessment agencies and adjusted to ensure inter-provincial comparability. (valeur marchande estimée des immeubles résidentiels)
- business sector industry
business sector industry means
(a) for intermediate input expenditures, one of the business sector industries that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts; and
(b) for machinery and equipment and non-residential construction capital expenditures, one of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts capital formation estimates. (secteur d’activité commerciale)
- capital expenditures for machinery and equipment
capital expenditures for machinery and equipment means capital expenditures for machinery and equipment, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada. (dépenses d’immobilisation pour des machines et de l’outillage)
- capital expenditures for non-residential construction
capital expenditures for non-residential construction means capital expenditures for non-residential construction, as determined by Statistics Canada using data from its Provincial Economic Accounts, net of any federal or provincial sales taxes, as determined by Statistics Canada. (dépenses d’immobilisation pour la construction non résidentielle)
- 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) Hydro One Incorporated;
(d) Hydro Quebec;
(e) Manitoba Hydro;
(f) Newfoundland and Labrador Hydro Corporation; and
(g) Ontario Power Generation. (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 means the following games of chance:
(a) those 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) those that are played on video lottery terminals;
(c) those that are played on slot machines;
(d) those played at casinos; and
(e) bingo. (jeux de hasard)
- housing expenditure category
housing expenditure category means one of the following categories used by Statistics Canada to categorize housing expenditures for the purpose of its Provincial Economic Accounts:
(a) new residential housing expenditures;
(b) residential housing repairs and renovation expenditures; and
(c) residential housing transfer expenditures. (catégorie de dépenses de logement)
- housing expenditures
housing expenditures means expenditures, net of any federal or provincial sales taxes as determined by Statistics Canada, on
(a) new residential housing at fair market value, including the value of land, as determined by Statistics Canada;
(b) residential housing repairs and renovations as determined by Statistics Canada for the purpose of its Provincial Economic Accounts; and
(c) residential housing transfers as determined by Statistics Canada for the purpose of its Provincial Economic Accounts. (dépenses de logement)
- hydrocarbon deposits
hydrocarbon deposits means naturally occurring hydrocarbon deposits. (gisements d’hydrocarbures)
- intermediate input commodity
intermediate input commodity means one of the intermediate input commodities that constitute part of the intermediate input matrix as defined by Statistics Canada for the purpose of its W-level Interprovincial Input-Output Accounts. (intrant intermédiaire)
- intermediate input expenditures
intermediate input expenditures means expenditures on intermediate input commodities net of any federal or provincial sales taxes, as determined by Statistics Canada,
(a) in the case of expenditures by a business sector industry, for the purpose of its W-level Interprovincial Input-Output Accounts; and
(b) in the case of expenditures by a non-business sector industry, using data from its Provincial Economic Accounts for the purpose of its W-level Interprovincial Input-Output Accounts. (dépenses d’intrant intermédiaire)
- minerals
minerals means all metallic and non-metallic minerals classified by Statistics Canada for the purpose of its publication entitled General Review of the Mineral Industries, Mines, Quarries and Sand Pits, but does not include elemental sulphur. (minerais)
- net provincial sales tax revenues
net provincial sales tax revenues means revenues from the revenue source described in subparagraphs 4(1)(c)(i) and (ii) and paragraph 7(1)(d), net of any provincial sales tax credits and provincial sales tax rebates. (recettes de taxe de vente provinciale nettes)
- new oil
new oil means
(a) in the case of Alberta,
(i) oil from wells that draw from pools discovered on or after April 1, 1974 and before October 1, 1992,
(ii) oil from horizontal wells that draw from pools discovered on or after April 1, 1974, and
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes;
(b) in the case of British Columbia,
(i) oil from wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975 and that is not third tier oil,
(ii) oil from horizontal wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes,
(iv) oil from wells that received the new oil reference price under the National Energy Program, and
(v) oil from wells abandoned for three consecutive years and for which production resumed on or after January 1, 1981 and that had not been converted to an injection, pressure maintenance or observation well;
(c) in the case of Manitoba,
(i) oil from vertical wells that were drilled and completed on or after April 1, 1974 and before April 1, 1999,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1974,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1987 and before April 1, 1999,
(iv) oil from wells abandoned before April 1, 1974 and re-entered on or after April 1, 1974 and before April 1, 1999, and
(v) incentive oil;
(d) in the case of Saskatchewan,
(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994,
(ii) oil from horizontal wells that were drilled and completed on or after April 1, 1991,
(iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1974 and before January 1, 1994, and
(iv) oil from wells producing less than 1.6 m3 per day that were drilled and completed before January 1, 1994; and
(e) in the case of all other provinces,
(i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994, and
(ii) oil from horizontal wells that were drilled and completed on or after January 1, 1974. (nouveau pétrole)
- non-business sector industry
non-business sector industry means the following non-business sector industries as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and W-level Interprovincial Input-Output Accounts, namely non-profit, hospital, other health institutions, university, other educational institutions, and municipal government. (industrie d’activité non commerciale)
- personal expenditure category
personal expenditure category means one of the “j-level” categories, as defined by Statistics Canada for the purpose of its Provincial Economic Accounts and used by Statistics Canada to categorize personal expenditures. (catégorie de dépenses personnelles)
- personal expenditures
personal 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 persons for that insurance, net of any federal or provincial sales taxes, as determined by Statistics Canada; and
(b) in the case of any other expenditures, personal expenditures as determined by Statistics Canada for the purpose of its Provincial Economic Accounts, net of any federal or provincial sales taxes other than federal and provincial tobacco and alcoholic beverage excise taxes levied on those expenditures, as determined by Statistics Canada. (dépenses personnelles)
- 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 means, in relation to an individual 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 micro-simulation model which, for greater certainty, excludes assessments
(a) that, for earlier taxation years, were filed late and that, for later taxation years, were filed early; and
(b) for trusts. (impôt fédéral sur le revenu simulé)
- third tier oil
third tier oil means
(a) in the case of Alberta, oil from vertical wells that draw from pools discovered on or after October 1, 1992;
(b) in the case of British Columbia, oil from vertical wells that draw from pools or portions of pools in which no well drillings were completed before June 2, 1998;
(c) in the case of Manitoba,
(i) oil from wells, other than horizontal wells, that were drilled and completed on or after April 1, 1999,
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after April 1, 1999,
(iii) oil from wells, other than horizontal wells, abandoned before April 1, 1999 and re-entered on or after April 1, 1999, and
(iv) oil from wells, other than horizontal wells, that were inactive on April 1, 1999 and re-activated after April 1, 1999;
(d) in the case of Saskatchewan,
(i) oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994, and
(ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1994; and
(e) in the case of all other provinces, oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994. (pétrole de troisième niveau)
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