Federal-Provincial Fiscal Arrangements Act, 1972 — F-8.2 4
Calculation of payments 4 (1) The provincial revenue equalization payment that may be paid to a province for a fiscal year is an amount determined by the Minister in accordance with the following rules: (a) determine the proportion, as a percentage, that the population of the province for the fiscal year is of the population of all the provinces for the fiscal year; (b) determine the proportion, as a percentage, that the revenue base for each revenue source for the province for the fiscal year is of the revenue base for that revenue source for all the provinces for the fiscal year; (c) determine the difference between the population percentage determined under paragraph (a) and, for each revenue source for the province for the fiscal year, the revenue base percentage determined under paragraph (b) (which difference, in the event that the population percentage so determined exceeds for any such revenue source the revenue base percentage determined under paragraph (b), is referred to in this subsection as a “fiscal capacity deficiency” with respect to that revenue source and, in any other event, is referred to in this subsection as a “fiscal capacity excess” with respect thereto); (d) determine the aggregate of the products obtained by multiplying, for each revenue source for the fiscal year with respect to which the province has a fiscal capacity deficiency, the total revenue from that revenue source for all the provinces for the fiscal year by the fiscal capacity deficiency of the province for the fiscal year with respect to that revenue source; (e) determine the aggregate of the products obtained by multiplying, for each revenue source for the fiscal year with respect to which the province has a fiscal capacity excess, the total revenue from that revenue source for all the provinces for the fiscal year by the fiscal capacity excess of the province for the fiscal year with respect to that revenue source; and the amount, if any, by which the amount determined under paragraph (d) exceeds the amount determined under paragraph (e) is the provincial revenue equalization payment that may be paid to the province for the fiscal year. Allocation of total revenues to be equalized among all revenue sources (2) The Minister shall, for each fiscal year, allocate the total revenues to be equalized for the fiscal year among all revenue sources in such a manner that the aggregate of the total revenues derived by all the provinces for the fiscal year from each of those revenue sources is equal to the total revenues to be equalized for the fiscal year. Definitions (3) In this section, revenue base for a revenue source for a province for a fiscal year has the meaning given to that expression by the regulations; ( assiette ) revenue source means any of the following sources from which provincial revenues are or may be derived, namely: (a) personal income taxes, (b) corporation income taxes, (c) general and miscellaneous sales taxes, tobacco taxes and amusement taxes, (d) motive fuel taxes, (e) motor vehicle licensing revenues, (f) alcoholic beverage revenues including profits of provincial liquor boards, (g) hospital and medical care insurance premiums, (h) succession duties and gift taxes, (i) race track taxes, (j) forestry revenues, (k) revenues identifiable as oil revenues and consisting of royalties, licences, taxes, rentals, levies and payments or remittances of any kind that are derived in respect of mineral rights owned by the Crown in right of the province, (k.1) revenues identifiable as oil revenues and consisting of licences, taxes, rentals, levies and payments or remittances of any kind that are derived in respect of mineral rights held otherwise than by the Crown in right of the province, (l) revenues identifiable as natural gas revenues and consisting of royalties, licences, taxes, rentals, levies and payments or remittances of any kind that are derived in respect of mineral rights owned by the Crown in right of the province, (l.1) r