Federal-Provincial Fiscal Arrangements Regulations, 2007

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, 2014, calculate the net aggregate of overpayments to be recovered from that province by determining

• (a) the net total of all underpayments and overpayments in relation to the following payments made under the Act, any regulations made under the Act or a tax collection agreement concluded under the Act:

  • (i) fiscal equalization payments that are shown in that fiscal year to have been made in relation to each previous fiscal year within the period beginning on April 1, 1994 and ending on March 31, 2006, and

  • (ii) income tax payments under tax collection agreements and fiscal stabilization payments that are shown in that fiscal year to have been made in relation to each previous fiscal year within the period beginning on April 1, 1994 and ending on March 31, 2013; 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 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

• (a) for a fiscal year within the period beginning on April 1, 2007 and ending on March 31, 2009, $130 per capita; and

• (b) for a fiscal year within the period beginning on April 1, 2009 and ending on March 31, 2014, $140 per capita.

(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 that year’s net aggregate of overpayments for the province.

(4) Despite subsection (2), if any portion of the deferred outstanding balance remains outstanding at the end of the second fiscal year following that in which payment was first made by the province, that balance shall be recovered during the fiscal year that immediately follows that second fiscal year and, for greater certainty, that balance shall not be taken into account when calculating the net aggregate of overpayments for that immediately following fiscal year.