Federal-Provincial Fiscal Arrangements Act — F-7.8 8
General equalization 8 (1) The general equalization applicable to a province for a fiscal year is an amount, as determined by the Minister, equal to the product obtained by multiplying the population of the province for the fiscal year by the amount, if any, that will cause (a) the per capita amount derived by dividing (i) the aggregate of the products obtained by multiplying the national average provincial revenue rate for each revenue source for the fiscal year by the revenue base for that revenue source for the province for the fiscal year, by (ii) the population of the province for the fiscal year, to equal (b) the per capita amount derived by dividing (i) the aggregate of the products obtained by multiplying the national average provincial revenue rate for each revenue source for the fiscal year by the revenue base for that revenue source for all the provinces for the fiscal year, by (ii) the total population of all the provinces for the fiscal year. Definitions (2) In this section fiscal period for a revenue source means such period as may be prescribed, in the case of that revenue source, for the purpose of determining the national average provincial revenue rate for that revenue source for a fiscal year; ( exercice financier ) national average provincial revenue rate for a revenue source for a fiscal year is the rate derived by dividing (a) the total revenue, as determined by the Minister, from that revenue source for all the provinces for the fiscal period prescribed in the case of that revenue source, by (b) the total revenue base, as determined by the Minister, for that revenue source for all the provinces for the fiscal period prescribed in the case of that revenue source; ( taux national moyen du revenu provincial ) revenue base for a revenue source for a province for a fiscal year has the meaning given to that expression by regulation; ( base de revenu ) revenue source means any of the following sources, as more particularly defined by regulation, from which provincial revenues are or may be derived, namely: (a) personal income tax, (b) corporation income tax, (c) succession duties and shares of estate tax, (d) general sales tax, (e) motor fuel tax, (f) motor vehicle revenues, (g) alcoholic beverage revenues, (h) forestry revenues, (i) oil royalties, (j) natural gas royalties, (k) sales of Crown leases and reservations on oil and natural gas lands, (l) oil and gas revenues, other than those described in paragraphs (i), (j) and (k), (m) metallic and non-metallic mineral revenues, (n) water power rentals, (o) provincial taxes, other than those described in any of paragraphs (a) to (n), and (p) miscellaneous provincial revenues. ( source de revenu ) Application (3) In determining for the purposes of the definition national average provincial revenue rate in subsection (2) the revenue from the revenue source described in paragraph (a) of the definition revenue source in subsection (2) for a province for a fiscal year, the Minister may deduct from the amount that but for this subsection would have been the revenue therefrom the estimated amount, as determined by the Minister, by which the revenues derived by Canada from individual income taxes for the taxation year ending in that fiscal year under the Income Tax Act are less than the revenues that would have been derived from such taxes for that taxation year if no additional amounts had been deductible under section 33 of that Act, in the case of individuals resident in that province in that taxation year, (a) in consequence of the province providing schooling allowances within the meaning of the Youth Allowances Act , and (b) in consequence of the application to that province of the Established Programs (Interim Arrangements) Act . Determination of population (4) For purposes of this section (a) the population of a province (i) for a calendar year in which a census thereof was taken, is the population as ascertained by the census, and (ii) for any other calendar yea