Vol. 147, No. 26 — December 18, 2013

Registration

SOR/2013-225 December 6, 2013

FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Regulations Amending the Federal-Provincial Fiscal Arrangements Regulations, 2007

P.C. 2013-1327 December 5, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 40 (see footnote a) of the Federal-Provincial Fiscal Arrangements Act (see footnote b), makes the annexed Regulations Amending the Federal-Provincial Fiscal Arrangements Regulations, 2007.

REGULATIONS AMENDING THE FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS REGULATIONS, 2007

AMENDMENTS

1. (1) The definitions “federal government sector”, “Financial Management System”, “local general government sub-sector”, “local government sector”, “provincial and territorial general government sub-sector”, “provincial and territorial government sector” and “university and college subsector” in subsection 1(1) of the Federal-Provincial Fiscal Arrangements Regulations, 2007 (see footnote 1) are repealed.

(2) The definition “sous-secteur des conseils et des commissions scolaires” in subsection 1(1) of the French version of the Regulations is repealed.

(3) The definitions “CANSIM table” and “health and social service institutions sub-sector” in subsection 1(1) of the Regulations are replaced by the following:

“CANSIM table” means a table published by Statistics Canada showing information from its Canadian socio-economic information management (CANSIM) database. (tableau CANSIM)

“health and social service institutions sub-sector” means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des institutions de services de santé et de services sociaux)

(4) The definition “school boards sub-sector” in subsection 1(1) of the English version of the Regulations is replaced by the following:

“school boards sub-sector” means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des commissions scolaires)

(5) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

“adjusted number of litres of diesel fuel taxed at road-use rate” means, in respect of a province or territory, the amount that is the difference between

“adjusted number of litres of gasoline taxed at road-use rate” means, in respect of a province or territory, the number of litres of gasoline taxed at road-use rate that are sold in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of CANSIM tables 405-0002, Gasoline and Other Petroleum Fuels Sold, Annual and 405-0003, Gasoline and Other Petroleum Fuels Sold, Monthly, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any relevant information, including the revenues of those sales divided by that tax rate minus, in the case of a province or territory where gasoline that is sold for use by farm trucks is taxed at road-use rate, the number of litres of gasoline that are sold for use by farm trucks in the province or territory. (nombre rajusté de litres d’essence taxés au taux d’utilisation routière)

“assessed market value of residential property” means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of residential property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from information regarding residential property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure inter-jurisdictional comparability. (valeur marchande estimée des propriétés foncières résidentielles)

“business sector” means that sector as defined by Statistics Canada for the purpose of its System of National Accounts. (secteur des entreprises)

“federal general government sector” means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur de l’administration publique générale fédérale)

“federal income tax as determined by the micro-simulation model” means, in relation to an individual — not including a trust — in a province or territory for a taxation year, the amount of “tax otherwise payable under this Part” in respect of that year, as defined in subsection 120(4) of the Income Tax Act, as determined by means of the micro-simulation model. (impôt fédéral sur le revenu déterminé par le modèle de microsimulation)

“Government Finance Statistics” means the system of accounts for government finances used by Statistics Canada. (statistiques de finances publiques)

“household final consumption expenditure category” means any of the household consumption expenditure series categories as defined by Statistics Canada for the purpose of its Provincial and Territorial Economic Accounts. (catégorie de dépenses de consommation finale des ménages)

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

“local general government sector” means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales locales)

“local government sub-sector” means that component of the local general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques locales)

“provincial and territorial general government sector” means that component of the public sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (secteur des administrations publiques générales provinciales et territoriales)

“provincial and territorial government sub-sector” means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des administrations publiques provinciales et territoriales)

“public or non-profit entity category” means any of the following categories of entities, other than those in the business sector:

“taxes on products” means taxes on products as defined by Statistics Canada for the purpose of its System of National Accounts, whether imposed by the federal or a provincial, territorial or local government. (taxes sur les produits)

“universities and colleges sub-sector” means that component of the provincial and territorial general government sector as defined by Statistics Canada for the purpose of the Government Finance Statistics. (sous-secteur des universités et des collèges)

(6) Subsection 1(1) of the French version of the Regulations is amended by adding the following in alphabetical order:

« sous-secteur des commissions scolaires » Composante du secteur des administrations publiques générales locales ainsi définie par Statistique Canada pour les besoins des statistiques de finances publiques. (school boards sub-sector)

(7) Section 1 of the Regulations is amended by adding the following after subsection (3):

(4) In these Regulations, a reference to a business enterprise of a province or territory means a government business enterprise, as that term is used by Statistics Canada for the purpose of its System of National Accounts.

(5) In Parts 1, 1.1 and 2, “province” does not include Yukon, the Northwest Territories or Nunavut.

2. Section 2 of the Regulations is replaced by the following:

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.

3. (1) The definitions “assessed market value of residential property”, “business sector industry”, “capital expenditures for machinery and equipment”, “capital expenditures for non-residential construction”, “housing expenditure category”, “housing expenditures”, “intermediate input commodity”, “intermediate input expenditures”, “minerals”, “net provincial sales tax revenues”, “new oil”, “non-business sector industry”, “personal expenditure category”, “personal expenditures”, “simulated federal income tax” and “third tier oil” in section 3 of the Regulations are repealed.

(2) The definitions “allocated corporation taxable income attributable to the province for the fiscal year” and “games of chance” in section 3 of the Regulations are replaced by the following:

“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

“games of chance” include

(3) The definition “electricity enterprise” in section 3 of the Regulations is amended by adding the following after paragraph (e.1):

4. The Regulations are amended by adding the following before the heading “Revenue Source” before section 4:

Interpretation

3.1 The following definitions apply in this Division.

“business sector industry” means any of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (industrie du secteur des entreprises)

“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 National 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” 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 National 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” 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 National Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)

“household final consumption expenditures” means,

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

“intermediate input commodity” means any of the intermediate input commodities as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (intrant intermédiaire)

“intermediate input expenditures” means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ 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” 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” means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix:

5. (1) Subparagraphs 4(1)(a)(i) to (iv) of the Regulations are replaced by the following:

(2) Subparagraph 4(1)(b)(i) of the Regulations is replaced by the following:

(3) Paragraph 4(1)(b) of the Regulations is amended by striking out “and” at the end of subparagraph (ii), by adding “and” at the end of subparagraph (iii) and by adding the following after subparagraph (iii):

(4) Subparagraphs 4(1)(c)(iv) and (v) of the Regulations are replaced by the following:

(5) Subparagraphs 4(1)(c)(viii) and (ix) of the Regulations are replaced by the following:

(6) Subparagraph 4(1)(c)(xv) of the Regulations is replaced by the following:

(7) Subparagraphs 4(1)(d)(iv) and (v) of the Regulations are replaced by the following:

(8) Subparagraphs 4(1)(e)(vii) and (viii) of the Regulations are replaced by the following:

(9) Section 4 of the Regulations is amended by adding the following after subsection (1):

(1.1) The following revenues are excluded from subparagraphs (1)(d)(iv) and (v), as applicable:

6. (1) Clause 5(a)(i)(A) of the Regulations is replaced by the following:

(2) Subclause 5(a)(ii)(A)(I) of the Regulations is replaced by the following:

(3) The portion of subparagraph 5(b)(ii) of the Regulations before subclause (A)(I) is replaced by the following:

(4) Subclause 5(b)(ii)(A)(V) of the Regulations is replaced by the following:

(5) Clause 5(b)(ii)(B) of the Regulations is replaced by the following:

(6) Paragraphs 5(c) and (d) of the Regulations are replaced by the following:

7. The heading “NOVA SCOTIA and NEWFOUNDLAND AND LABRADOR” before section 6 of the Regulations is replaced by the following:

NOVA SCOTIA

8. (1) The definitions “adjusted number of litres of diesel fuel taxed at road-use rate in the province” and “adjusted number of litres of gasoline taxed at road-use rate in the province” in section 6 of the Regulations are repealed.

(2) The definitions “average tax rate”, “calculated net profits”, “mining and quarrying industry”, “number of litres of diesel fuel sold for use by farm trucks in the province”, “number of litres of gasoline sold for use by farm trucks in the province” and “regional price” in section 6 of the Regulations are replaced by the following:

“average tax rate” means,

“calculated net profits” means, for a province for a fiscal year, the difference that results from subtracting the capital assessed depreciation costs of the mining and quarrying industry in that province — including depreciation costs related to mine-site exploration and development, but not including those related to general exploration and development — as determined by Statistics Canada using the straight-line depreciation method on the basis of fixed capital flows and stocks data prepared for the purpose of its Provincial and Territorial Economic Accounts, from the net profits before taxes of that industry, calculated for the calendar year that ends in the fiscal year as the sum of the following, as determined by Statistics Canada on the basis of data from its Provincial Input-Output Accounts:

“mining and quarrying industry” means the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts:

“number of litres of diesel fuel sold for use by farm trucks in the province” means 200 times the number of cubic metres of diesel fuel used in the agriculture industry in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres de carburant diesel vendus pour consommation par des camions de ferme dans la province) “number of litres of gasoline sold for use by farm trucks in the province” means 300 times the number of cubic metres of gasoline used in the agriculture industry in the province during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada, or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres d’essence vendus pour consommation par des camions de ferme dans la province)

“regional price” means the price per unit, as calculated by Statistics Canada for the purpose of the certificate by dividing the value of production by the volume of production using the value and volume of production data determined by Statistics Canada on the basis of its Annual Survey of Manufactures and Logging, of logs and bolts, pulpwood, industrial roundwood or fuelwood and firewood produced

(3) Section 6 of the Regulations is amended by adding the following in alphabetical order:

“business sector industry” means any of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix. (industrie du secteur des entreprises)

“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 National Accounts, net of any own-account expenditures and any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en capitale fixe pour la propriété intellectuelle)

“capital expenditures for machinery or 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 National Accounts, net of any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en capital fixe pour machines et matériel)

“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 National Accounts, net of any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)

“general provincial sales tax revenues” means revenues derived by a province from general sales taxes, including amounts paid to a province in accordance with a sales tax harmonization agreement. (recettes de taxe de vente provinciale générale)

“household final consumption expenditures” means,

“housing expenditures” means expenditures, net of any federal or provincial general sales taxes as determined by Statistics Canada, on

“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 Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix. (intrant intermédiaire)

“intermediate input expenditures” means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix, net of any federal or provincial general sales taxes, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)

“minerals” means all metallic and non-metallic minerals classified by Natural Resources Canada for the purpose of its publication entitled General Review of the Mineral Industries, Mines, Quarries and Sand Pits, other than elemental sulphur. (minerais)

“new oil” means

“non-business sector industry” means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ detailed confidential level intermediate input matrix:

“third tier oil” means

9. (1) Subparagraphs 7(1)(a)(i) to (iii) of the Regulations are replaced by the following:

(2) Subparagraph 7(1)(b)(i) of the Regulations is replaced by the following:

(3) Subparagraph 7(1)(c)(ii) of the Regulations is replaced by the following:

(4) Subparagraph 7(1)(d)(iii) of the Regulations is replaced by the following:

(5) Paragraph 7(1)(h) of the Regulations is replaced by the following:

(6) Paragraph 7(1)(k) of the Regulations is replaced by the following:

(7) Paragraph 7(1)(x) of the Regulations is replaced by the following:

(8) Paragraph 7(1)(z.4) of the Regulations is replaced by the following:

(9) Subparagraphs 7(1)(z.5)(i) and (ii) of the Regulations are replaced by the following:

(10) Subsections 7(2) and (3) of the Regulations are replaced by the following:

(2) The following revenues are excluded from subparagraphs (1)(z.4)(i) and (ii), as applicable:

10. (1) The portion of subsection 8(1) of the Regulations before paragraph (a) is replaced by the following:

8. (1) For the purpose of sections 3.71 to 3.9 of the Act, the expression “revenue base” means, in respect of a revenue source for a fiscal year,

(2) Clause 8(1)(a)(i)(A) of the Regulations is replaced by the following:

(3) Subclause 8(1)(a)(ii)(A)(I) of the Regulations is replaced by the following:

(4) The portion of subparagraph 8(1)(b)(ii) of the Regulations before subclause (A)(I) is replaced by the following:

(5) Subclause 8(1)(b)(ii)(A)(IV) of the Regulations is replaced by the following:

(6) Clause 8(1)(b)(ii)(B) of the Regulations is replaced by the following:

(7) Paragraph 8(1)(c) of the Regulations is replaced by the following:

(8) Paragraph 8(1)(d) of the Regulations is replaced by the following:


(9) Subparagraph 8(1)(f)(ii) of the Regulations is replaced by the following:

(10) Clauses 8(1)(g)(ii)(A) and (B) of the Regulations are replaced by the following:

(11) Paragraphs 8(1)(h) to (k) of the Regulations are replaced by the following:

(12) The portion of subparagraph 8(1)(l)(i) of the Regulations before clause (A) is replaced by the following:

(13) Subparagraph 8(1)(l)(ii) of the Regulations is replaced by the following:

(14) Subparagraph 8(1)(n)(i) of the Regulations is replaced by the following:

(15) Paragraph 8(1)(p) of the Regulations is replaced by the following:

(16) Subparagraph 8(1)(s)(i) of the Regulations is replaced by the following:

(17) Subparagraphs 8(1)(u)(i) and (ii) of the Regulations are replaced by the following:

(18) Subparagraphs 8(1)(w)(i) to (iii) of the Regulations are replaced by the following:

(19) The description of A in paragraph 8(1)(y) of the Regulations is replaced by the following:

(20) The description of W in paragraph 8(1)(y) of the Regulations is replaced by the following:

W is the aggregate revenue derived from payroll taxes by all provinces that levy those taxes for the fiscal year,

(21) The portion of the description of W1, W2, W3 and W4 before subparagraph (i) in paragraph 8(1)(y) of the Regulations is replaced by the following:

W1, W2, W3 and W4 are the revenues derived from payroll taxes for the fiscal year by

(22) The description of P in paragraph 8(1)(y) of the Regulations is replaced by the following:

P is the gross dollar value, before deductions, of the payrolls of all employers in the province for the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its Survey of Employment, Payrolls and Hours, other than the payrolls of

(23) Paragraph 8(1)(z) of the Regulations is replaced by the following:

(24) Subparagraph 8(1)(z.2)(ii) of the Regulations is replaced by the following:

(25) Subparagraph 8(1)(z.3)(ii) of the Regulations is replaced by the following:

(26) Subparagraphs 8(1)(z.4)(i) and (ii) of the Regulations are replaced by the following:

(27) The definition “value of oil” in subsection 8(4) of the Regulations is replaced by the following:

“value of oil” means the value of the marketable production of crude oil from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du pétrole)

(28) The definition “value of natural gas” in subsection 8(6) of the Regulations is replaced by the following:

“value of natural gas” means the value of the marketable production of gas and gas by-products from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du gaz naturel)

11. Section 9 of the Regulations is replaced by the following:

9. (1) The definition “revenue to be equalized” in subsections 3.5(1) and 3.9(1) of the Act is, in respect of a revenue source for a province for a fiscal year, more particularly defined to

(2) In respect of the revenues described in subparagraph 4(1)(a)(ii) and paragraph 7(1)(y), the sum of the amounts referred to in subparagraphs (1)(b)(ii) and (iii) shall be the amount by which the product described in paragraph (a) exceeds the amount described in paragraph (b):

9.1 (1) In determining the revenues described in paragraphs 4(1)(a) and 7(1)(a) in respect of Manitoba and Ontario for a fiscal year, the Minister shall not reduce those revenues by the amount of any recoveries from those provinces in respect of overpayments of capital gains taxes pursuant to a tax collection agreement.

(2) In determining the revenues described in paragraphs 4(1)(e) and 7(1)(l) to (w) in respect of a province for a fiscal year, the Minister may adjust the amount set out in the certificate by adding or deducting the amount of any expense, subsidy, rebate or tax reduction incurred or granted by the government of that province in relation to that revenue source, if that addition or reduction is necessary to ensure that revenues are calculated consistently for all provinces.

(3) In determining the revenues described in paragraphs 7(1)(a) and (z) in respect of a province for a fiscal year, the Minister may deduct the amount of any refundable income tax credit that the province grants in favour of a taxpayer for the fiscal year in relation to those revenues, as determined by the Minister, up to a maximum equal to the amount of the taxpayer’s tax payable that is included in the revenue for paragraph 7(1)(a) set out in the certificate, from

(4) In determining the revenues described in paragraph 7(1)(c) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the part of that revenue source described in subparagraph 7(1)(c)(ii).

(5) In determining the revenues described in paragraph 7(1)(z.4) in respect of a province for a fiscal year, the Minister shall deduct one half of the amount set out in the certificate for the parts of that revenue source described in clauses 7(1)(z.4)(i)(A) and (ii)(A).


12. Section 10 of the Regulations is replaced by the following:

10. (1) The following definitions apply in this section.

“personal taxes” means

“provincial system” means the set of rules relating to the imposition of personal taxes in a province. (régime provincial)

(2) For the purpose of clauses 5(a)(i)(A) and 8(1)(a)(i)(A), the simulated average revenue yield relating to personal income for the province for a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model by

13. (1) Paragraph 12(2)(a) of the Regulations is replaced by the following:

(2) Paragraphs 12(3)(b) and (c) of the Regulations are replaced by the following:

14. Sections 13 to 16.3 of the Regulations are replaced by the following:

13. (1) When calculating a fiscal equalization payment for a fiscal year under sections 3.2 and 3.4 of the Act, the Minister shall use

(2) When calculating a fiscal equalization amount for a fiscal year under section 3.72 of the Act, the Minister shall use

14. (1) For each fiscal year, the Minister shall, in December of the preceding fiscal year, make an estimate of the fiscal equalization amount to be calculated under section 3.72 of the Act using

(2) The Minister shall inform Nova Scotia’s Minister of Finance of the estimate referred to in subsection (1) on or before December 31 of the fiscal year preceding that for which the estimate is made.

14.1 (1) When determining the revenue to be equalized from a revenue source for a fiscal year for the purpose of making a calculation or estimate referred to in section 13 or 14, the Minister may, if information that is necessary for that determination is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, estimate the revenue to be equalized on the basis of any information that is available to the Minister at the time of the calculation.

(2) When determining a revenue base for the purpose of making a calculation or estimate referred to in section 13 or 14, the Minister may, if information that is necessary for that determination is unavailable or incorrect, estimate the base using the following substitutions:

(3) If a revenue base for a fiscal year is estimated in accordance with subsection (2), the Minister may further adjust that estimate to take into account factors or trends that could change the provincial share of that revenue base between the earlier fiscal year from which information was used to estimate the base for the fiscal year and the fiscal year for which the revenue base is estimated.

(4) If the Minister is unable to estimate a revenue base in accordance with subsection (2), the Minister shall make an estimate on the basis of any information that is available to the Minister.

(5) If an aggregate of the revenues of two or more revenue sources is provided in a certificate under paragraph 12(3)(c), the Minister shall determine the portion of the aggregate that is to apply to each of those revenue sources.

Elections

15. An election made by a province under subsection 3.2(2) of the Act shall be communicated in writing to the Minister on or before March 1 preceding the fiscal year for which the election is being made.

Payments

16. If the Minister determines under sections 3.2 and 3.4 of the Act that a fiscal equalization payment is to be made to a province for a fiscal year, the Minister shall make the payment to the province in 24 equal instalments, with an instalment being made on each of the first and third working days after the 15th calendar day of each month of the fiscal year.

15. The headings before section 16.5 and sections 16.5 and 16.6 of the Regulations are replaced by the following:

Advances on Account of Payments under Section 3.71 of the Act

16.6 In sections 16.7 and 16.8, “period” has the same meaning as in subsection 3.71(2) of the Act.

16. The portion of subsection 16.7(1) of the Regulations before paragraph (a) is replaced by the following:

16.7 (1) If the amount related to an advance — calculated under section 16.8 — on account of an additional fiscal equalization payment that may be paid to Nova Scotia under section 3.71 of the Act for each fiscal year in the period is

17. Section 16.8 of the Regulations is replaced by the following:

16.8 The amount related to an advance on account of an additional fiscal equalization payment that may be paid to Nova Scotia under section 3.71 of the Act for each fiscal year in the period shall be the amount that is the greater of zero and the amount calculated in accordance with the following formula:

(A + B) − (C + D)

18. (1) The definitions “adjusted number of litres of diesel fuel taxed at road-use rate in the territory”, “adjusted number of litres of gasoline taxed at road-use rate in the territory”, “allocated corporation taxable income attributable to the territory for the fiscal year”, “number of litres of diesel fuel sold for use by farm trucks in the territory”, “number of litres of gasoline sold for use by farm trucks in the territory” and “simulated federal income tax” in section 17 of the Regulations are repealed.

(2) The definition “average tax rate” in section 17 of the Regulations is replaced by the following:

“average tax rate” means

(3) Paragraph (b) of the definition “federal income tax payable” in section 17 of the English version of the Regulations is replaced by the following:

(4) Section 17 of the Regulations is amended by adding the following in alphabetical order:

“allocated corporation taxable income” means, in relation to a province or territory 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)

“assessed market value of commercial-industrial property” means, in relation to a province or territory for a calendar year, the estimated market value, as of July 1 of the preceding calendar year, of non-residential property other than farm property in the province or territory on January 1 of the calendar year, as determined by the Minister on the basis of data compiled by Statistics Canada from the Census of Agriculture and from information regarding property assessments for tax purposes for the calendar year obtained from municipal assessment agencies and adjusted to ensure interjurisdictional comparability. (valeur marchande estimée des propriétés foncières commerciales-industrielles)

“business sector industry” means any of the business sector industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (industrie du secteur des entreprises)

“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 National 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” 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 National 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” 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 National Accounts, net of any taxes on products, also as determined by Statistics Canada. (dépenses en capital fixe pour les ouvrages non résidentiels)

“household final consumption expenditures” means,

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

“intermediate input commodity” means any of the intermediate input commodities as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix. (intrant intermédiaire)

“intermediate input expenditures” means expenditures on intermediate input commodities, as determined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix, net of any taxes on products, also as determined by Statistics Canada. (dépenses en intrants intermédiaires)

“net provincial and territorial sales tax revenues” means revenues described in subparagraphs 18(1)(i)(i) and (ii), net of any provincial or territorial sales tax rebates. (recettes de taxe de vente provinciale et territoriale nettes)

“non-business sector industry” means any of the following industries as defined by Statistics Canada for the purpose of its Provincial Input-Output Accounts’ summary level intermediate input matrix:

“number of litres of diesel fuel sold for use by farm trucks” means, in respect of a province or territory, 100 times the number of cubic metres of diesel fuel used in the agriculture industry in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres de carburant diesel vendus pour consommation par des camions de ferme)

“number of litres of gasoline sold for use by farm trucks” means, in respect of a province or territory, 550 times the number of cubic metres of gasoline used in the agriculture industry in the province or territory during the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its publication entitled Report on Energy Supply and Demand in Canada or, if Statistics Canada does not make the determination, as determined by the Minister on the basis of any other relevant information. (nombre de litres d’essence vendus pour consommation par des camions de ferme)

“payroll tax system” means the set of rules relating to the imposition, by Ontario, Quebec, Manitoba or Newfoundland and Labrador, of tax on the payroll of employers. (régime d’impôt sur la masse salariale)

19. Section 17.1 of the Regulations is replaced by the following:

17.1 For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, a reference to the territories in any of the definitions “revenue base”, “revenue source” and “revenue to be equalized” in that subsection shall be read as including the provinces.

20. Section 18 of the Regulations is replaced by the following:

18. (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the provincial and territorial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (i) of the definition “revenue source” in that subsection are

(2) The following revenues are excluded from subparagraphs (1)(h)(iv) and (v), as applicable:

21. Subsection 19(1) of the Regulations is replaced by the following:

19. (1) The definition “revenue base” in subsection 4(1) of the Act is, for all purposes in respect of a revenue source for a territory for a fiscal year and for the purpose of calculating the national average rate of tax as defined in that subsection in respect of a revenue source for a province for a fiscal year, more particularly defined to mean

22. Sections 20 and 21 of the Regulations are replaced by the following:

20. (1) For the purpose of calculating the national average rate of tax, as defined in subsection 4(1) of the Act, the definition “revenue to be equalized” in that subsection is, in respect of a revenue source for a province or territory for a fiscal year, more particularly defined to

(2) In respect of the revenues described in paragraph 18(1)(g), the sum of the amounts referred to in subparagraphs (1)(b)(ii) and (iii) shall be the amount by which the product described in paragraph (a) exceeds the amount described in paragraph (b):

Simulated Yield

21. (1) The following definitions apply in this section.

“personal taxes” means

“provincial or territorial system” means the set of rules relating to the imposition of personal taxes in a province or territory. (régime provincial ou territorial)

(2) For the purpose of clause 19(1)(a)(i)(A), the simulated average revenue yield relating to provincial or territorial personal income for the province or territory for a taxation year ending in a fiscal year shall be determined by means of the micro-simulation model by

23. (1) The portion of paragraph 24(2)(a) of the Regulations before the formula is replaced by the following:

(2) The portion of paragraph 24(2)(b) of the Regulations before the formula is replaced by the following:

24. Section 27 of the Regulations is replaced by the following:

27. The manner in which the Chief Statistician of Canada shall determine the population of a province or territory for a fiscal year is by basing that determination on Statistics Canada’s official estimate of that population on

25. (1) Paragraph 28(2)(a) of the Regulations is replaced by the following:

(2) Paragraphs 28(3)(c) and (d) of the Regulations are replaced by the following:

26. Section 29 of the Regulations is replaced by the following:

29. When calculating a territorial formula financing payment for a fiscal year under section 4.1 of the Act, the Minister shall use

27. Subsections 30(1) to (4) of the Regulations are replaced by the following:

30. (1) When determining the revenue to be equalized from a revenue source for a fiscal year for the purpose of making a calculation referred to in section 29, the Minister may, if information that is necessary for that determination is incorrect, missing from the certificate or, in the case of information that is not required to be set out in the certificate, unavailable from the information source identified in these Regulations, estimate the revenue to be equalized on the basis of any information that is available to the Minister at the time of the calculation.

(2) When determining a revenue base for the purpose of making a calculation referred to in section 29, the Minister may, if information that is necessary for that determination is unavailable or incorrect, estimate the base using the following substitutions:

(3) If a revenue base for a fiscal year is estimated in accordance with subsection (2), the Minister may further adjust that estimate to take into account factors or trends that could change the provincial or territorial share of that revenue base between the earlier fiscal year from which information was used to estimate the base for the fiscal year and the fiscal year for which the revenue base is estimated.

(4) If the Minister is unable to estimate a revenue base in accordance with subsection (2), the Minister shall make an estimate on the basis of any information that is available to the Minister.

28. The portion of section 31 of the Regulations before paragraph (a) is replaced by the following:

31. If the Minister determines that a territorial formula financing payment is to be made under the Act to a territory for a fiscal year, the Minister shall

29. The portion of subsection 33(1) of the Regulations before paragraph (a) is replaced by the following:

33. (1) The Minister shall make the adjustment for a fiscal year referred to in subsection 6(2) of the Act by

30. Subsection 34(1) of the Regulations is replaced by the following:

34. (1) For the purpose of this Part, the total revenue derived by a province for a fiscal year from the revenue sources set out in subsection 7(1) is,

31. Subsection 36(2) of the Regulations is replaced by the following:

(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.

32. Subsections 41(1) and (2) of the Regulations are replaced by the following:

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, 2019, calculate the net aggregate of overpayments to be recovered from that province by adding

(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 $140 per capita.

TRANSITIONAL PROVISION

33. Parts 1 and 1.1 of the Federal-Provincial Fiscal Arrangements Regulations, 2007, as they read immediately before the day on which these Regulations come into force, continue to apply to payments made under Parts I and I.1 of the Act for a fiscal year ending no later than March 31, 2014.

COMING INTO FORCE

34. These Regulations come into force on the day on which they are registered.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2013-224, Regulations Amending the Canada Health Transfer, Canada Social Transfer and Wait Times Reduction Transfer Regulations.