Federal-Provincial Fiscal Arrangements Regulations, 2007 — 8
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, (a) in the case of personal income taxes described in paragraph 7(1)(a), the aggregate of (i) a fraction, expressed as a percentage for the province, (A) whose numerator is the simulated average revenue yield relating to personal income for the province for the taxation year that ends in the fiscal year, as determined in accordance with subsection 10(2), and (B) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and (ii) the difference obtained by subtracting (A) a fraction, expressed as a percentage for the province, (I) whose numerator is the aggregate, over all individuals — not including trusts — in the province, of the federal income tax as determined by the micro-simulation model for the taxation year that ends in the fiscal year, and (II) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in subclause (I), from (B) a fraction, expressed as a percentage for the province, (I) whose numerator is the aggregate, over all individuals in the province – including trusts – of the federal income tax payable for the taxation year that ends in the fiscal year as determined for each individual, and (II) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in subclause (I); (b) in the case of the taxes and revenues described in paragraph 7(1)(b), the aggregate of (i) the product of the portion of the aggregate of corporate profits in Canada, before the payment of income taxes and without any deduction of the aggregate of corporate losses in Canada, that is attributable to any of the 10 provinces for the calendar year that ends in the fiscal year, as determined by Statistics Canada for the purpose of its System of Macroeconomic Accounts, and a fraction (A) whose numerator is the allocated corporation taxable income attributable to the province for the fiscal year, and (B) whose denominator is the aggregate, over the 10 provinces, of the amount referred to in clause (A), and (ii) the product, as determined on the basis of data prepared by Statistics Canada for the purpose of the Government Finance Statistics, of (A) the aggregate, over all provinces, of the total profits, before the distribution of dividends, that are attributable to the province for the calendar year that ends in the fiscal year from business enterprises that have a profit in that calendar year and are owned 90% or more by that province, or by that province and one or more other provinces, excluding the profits for that calendar year (I) of a liquor board, commission or authority, (II) of an enterprise engaged entirely or primarily in the marketing of oil or natural gas, (III) of an enterprise carrying on a provincial lottery, and (IV) of the Ontario Electricity Financial Corporation and the Nova Scotia Power Finance Corporation, and (B) a fraction whose numerator is the amount of the total profits referred to in clause (A) that are attributable to the province less the amount by which any losses that were accumulated in the seven calendar years before that calendar year by a business enterprise referred to in that clause exceed the portion of those losses subtracted under this clause for that business enterprise in relation to that period, but only to the extent that the amount is not more than the total profits for that calendar year of that business enterprise, and whose denominator is the aggregate, over all provinces, of those numerators; (c) in the case of taxes on capital of corporations, described in paragraph 7(1)(c), the sum of (i) the aggregate, over the following industry categories established by Statistics Canada on the basis of the North American Industry Classification System, of the total taxable paid-up capital employed in the province for the calendar year that ends in the fiscal year in respect