Federal-Provincial Fiscal Arrangements Act, 1972 — F-8.2 12
at 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, determined in prescribed manner, of the provincial revenue equalization payment payable to the province for the fiscal year under Part I in respect of the aggregate of the total revenue determined under paragraph (d) and the total revenue determined under paragraph (e) derived from the revenue sources referred to in those paragraphs. Idem (2) In the event that the actual rate of personal income tax applicable under a provincial Act for a taxation year described in paragraph (1)(d) is not the same as the specified converted rate applicable to the province, for the purpose of determining the provincial tax revenue guarantee payment that may be paid to the province for the fiscal year in which the calendar year coinciding with the taxation year ends, the total revenue determined under paragraph (1)(d) shall be deemed to be that proportion of the amount that, but for this subsection, would be the total revenue determined under that paragraph that (a) the specified converted rate applicable to the province is of (b) the actual rate of personal income tax applicable under the provincial Act for that taxation year. Current year personal income tax revenue adjusted (3) For the purpose of paragraph (1)(d), the Minister, in determining the total revenue that would be derived by a province from a personal income tax in accordance with that paragraph, shall, in making the computation required thereby, (a) interpret the federal Act as if section 120 thereof were not applicable and a taxpayer were not entitled to any deduction under section 126 or 127 of that Act; (b) interpret the federal Act as if section 15 of An Act to Amend the Statute Law Relating to Income Tax (No. 3) (being chapter 30 of the Statutes of Canada, 1973-74) had not been enacted; (c) add to the revenue, as otherwise determined, such amount as is allocated to the province for the taxation year by the Minister in respect of personal income tax revenues that have been collected by Canada for which no tax return has been filed under the federal Act and allocated among the provinces as unapplied moneys; and (d) subtract from the revenue, as otherwise determined, any amount that under a provincial Act a taxpayer, in computing his tax thereunder, would be entitled to deduct in respect of foreign tax credit or logging tax credit. Current year corporation tax revenue adjusted (4) The total revenue, as determined by the Minister under paragraph (1)(e), derived by the province from a corporation income tax shall, for the purpose of that paragraph, be deemed to be the amount otherwise determined thereunder less the portion of that amount that, in the opinion of the Minister, would not have been derived by the province had paragraph 12(1)(o), paragraph 18(1)(m) and subsections 69(6) and (7) of the federal Act not been enacted, to the extent that such amount is remitted or refunded by the province pursuant to provincial law to those taxpayers in the province that made payments in respect of that amount under the provincial Act. 1972, c. 8, s. 12; 1974-75-76, c. 65, s. 2