Federal-Provincial Fiscal Arrangements Act, 1972 — F-8.2 12
Calculation of provincial tax revenue guarantee payment 12 (1) The provincial tax revenue guarantee payment that may be paid to a province for a fiscal year is the amount by which the aggregate of (a) the total revenue, as determined by the Minister in accordance with the formula prescribed by the regulations, that would be derived by the province from a personal income tax on every individual (i) who was resident in the province on the last day of the calendar year ending in the fiscal year, or (ii) who, not being resident in the province on the last day of that calendar year, had income earned in that year in the province as determined under the provincial Act, computed in accordance with, (iii) in the case of the Province of Ontario, the provincial Act, as it applied to the 1971 taxation year of individuals, at the rate of 28%, (iv) in the case of the Province of Prince Edward Island, the provincial Act, as it applied to the 1971 taxation year of individuals, at the rate of 33%, (v) in the case of the Province of Quebec, the federal Act, as it applied to the 1971 taxation year of individuals, at the rate of 31%, and (vi) in the case of any other province, the provincial Act, as it applied to the 1971 taxation year of individuals, at the actual rate applicable thereunder to that taxation year; (b) the total revenue, as determined by the Minister, that would be derived by the province from a corporation income tax on every corporation that maintained a permanent establishment in the province at any time in its taxation year ending in the calendar year that ends in the fiscal year, on its taxable income earned in that taxation year in the province computed in accordance with the federal Act, as it applied to the 1971 taxation year of such corporations, at the rate applicable under the provincial Act to the 1971 taxation year of corporations that maintained a permanent establishment in the province at any time in that taxation year, and (c) the portion, determined in prescribed manner, of the provincial revenue equalization payment that would be payable to the province for the fiscal year under Part I in respect of the aggregate of the total revenue determined under paragraph (a) and the total revenue determined under paragraph (b), if for each of the provinces such revenues were the actual revenues derived by those provinces for the taxation years and from the revenue sources referred to in those paragraphs, exceeds the aggregate of (d) the total revenue, as determined by the Minister, that would be derived by the province from a personal income tax on every individual (i) who was resident in the province on the last day of the calendar year ending in the fiscal year, or (ii) who, not being resident in the province on the last day of that calendar year, had income earned in that year in the province as determined under the provincial Act, computed in accordance with Part I of the federal Act, as it applied to the taxation year coinciding with that calendar year at the specified converted rate applicable to the province or in the case of the Province of Quebec at the rate of 34%, (iii) in the case of the Province of Quebec, the federal Act, as it applied to the taxation year coinciding with that calendar year, at the rate of 34%, and (iv) in the case of any other province, the provincial Act, as it applied to the taxation year coinciding with that calendar year, at the actual rate applicable thereunder to that taxation year, (e) the total revenue, as determined by the Minister, derived by the province from a corporation income tax on every corporation that maintained a permanent establishment in the province at any time in its taxation year ending in the calendar year that ends in the fiscal year, on its taxable income earned in that taxation year in the province computed in accordance with the federal Act, as it applied to that taxation year of such corporations, at the rate referred to in paragraph (b), and (f) the portion, d