Federal-Provincial Fiscal Arrangements Act — F-8 6
Computation of payments 6 (1) Subject to subsections (8) to (10), the fiscal stabilization payment that may be paid to a province for a fiscal year is the amount determined by the formula (0.95 × A) – B + (C × D) – (E × F) where A is the non-natural resource revenue of the province for the preceding fiscal year; B is the non-natural resource revenue of the province for the fiscal year; C is equal to (a) 95%, if the natural resource revenue of the province for the fiscal year is greater than 95% of the natural resource revenue of the province for the preceding fiscal year, (b) 50%, if the natural resource revenue of the province for the fiscal year is less than one half of the natural resource revenue of the province for the preceding fiscal year, or (c) zero, in any other case; D is the natural resource revenue of the province for the preceding fiscal year; E is equal to (a) one, if the natural resource revenue of the province for the fiscal year is either greater than 95% of the natural resource revenue of the province for the preceding fiscal year or less than one half of the natural resource revenue of the province for the preceding fiscal year, or (b) zero, in any other case; and F is the natural resource revenue of the province for the fiscal year. (1.1) [Repealed, 2010, c. 25, s. 173] Adjustment (2) For the purposes of determining the amount under subsection (1), the Minister may adjust, in the prescribed manner, the natural resource revenue and the non-natural resource revenue of a province for the fiscal year (a) to offset the amount, as determined by the Minister, of any change in either of those revenues for the fiscal year resulting from changes made by the province in the rates or structure of provincial taxes or of other means of raising the revenue of the province from the rates or structures in effect in the preceding fiscal year; and (b) to account for the absence of indexation in a provincial personal income tax system. Interpretation (2.1) If a province has entered into a tax collection agreement respecting personal income tax or corporation income tax, a change to the Income Tax Act affecting the province’s Common Tax Base as defined in Chapter 2 or 3, as the case may be, of the tax collection agreement is deemed to be a change in the rates or in the structures of provincial taxes for the purposes of subsection (2). (2.2) [Repealed, 2010, c. 25, s. 173] Natural resource revenue (3) For the purposes of determining the amount under subsection (1), the natural resource revenue of a province for a fiscal year is the aggregate of the total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraphs (l) to (w) of the definition revenue source in subsection 3.9(1) and from the revenue sources described in paragraph (z.5) of that definition that relate to natural resources. Non-natural resource revenue (4) For the purposes of determining the amount under subsection (1), the non-natural resource revenue of a province for a fiscal year is equal to (a) the aggregate of (i) the total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraphs (a) to (k), (x), (y) and (z.1) to (z.3) of the definition revenue source in subsection 3.9(1), (ii) the total revenue, as determined by the Minister, derived by the province for the fiscal year from the revenue sources described in paragraph (z.5) of that definition that do not relate to natural resources, (iii) the fiscal equalization payment made to the province for the fiscal year under Part I, and (iv) the additional cash payment made to the province for the fiscal year under section 24.703, minus (b) despite subsection (5), the value of the additional tax abatement units as determined in accordance with subsection 27(2). Non-natural resource revenue (5) For the purposes of determining the non-natural resource revenue of a province fo