PART 7R.S., c. F-8; 1995, c.17, s. 45(1)FEDERAL-PROVINCIAL FISCAL ARRANGEMENTS ACT

Marginal note:R.S., c. 11 (3rd Supp.), ss. 5(1), (4) and (6)(F); 1995, c. 17, ss. 47(1) and (2); 1999, c. 11, s. 3(3), c. 31, s. 235; 2005, c. 7, ss. 2(1) to (6)

• 173. (1) Subsections 6(1) to (6) of the Federal-Provincial Fiscal Arrangements Act are replaced by the following:

  Marginal note: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 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 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.

  • Marginal note: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 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.

  • Marginal note: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).

  • Marginal note: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.

  • Marginal note: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 aggregate of

      • (i) the total equalized tax transfer applicable to the province as if, for that fiscal year, the transfer were determined in the manner described in subsection 24.7(1.22), and

      • (ii) the value of the additional tax abatement units as determined in accordance with subsection 27(2).

  • Marginal note:Non-natural resource revenue

    (5) For the purposes of determining the non-natural resource revenue of a province for a fiscal year,

    • (a) subsection 3.9(2) applies, with any modifications that the circumstances require, in determining the revenue derived by the province for the fiscal year from personal income taxes, described in paragraph (a) of the definition “revenue source” in subsection 3.9(1), except that no deduction may be made in respect of the tax abatement units referred to in subsection 27(2);

    • (b) the province’s revenue for the fiscal year derived from personal income taxes, described in paragraph (a) of the definition “revenue source” in subsection 3.9(1), is deemed to be

      • (i) the total amount, determined in the prescribed manner, of the provincial personal income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year ending in the fiscal year,

      minus

      • (ii) the total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the province against provincial personal income taxes for that taxation year that have been deducted from those assessed or reassessed provincial personal income taxes; and

    • (c) the province’s revenue for the fiscal year derived from that part of the revenue source described in paragraph (b) of the definition “revenue source” in subsection 3.9(1) that consists of corporation income taxes is deemed to be

      • (i) the total amount, determined in the prescribed manner, of the provincial corporation income taxes assessed or reassessed, not later than 24 months after the end of the fiscal year, in respect of the taxation year of corporations ending in the calendar year that ends in the fiscal year,

      minus

      • (ii) the total amount, determined in the prescribed manner, of the tax credits and rebates claimed by taxpayers in the province against provincial corporation income taxes for that taxation year that have been deducted from those assessed or reassessed provincial corporation income taxes.

  • Marginal note:Fiscal year 2011–2012

    (6) Despite subsection (4), for the purposes of determining the amount under subsection (1) for the fiscal year that begins on April 1, 2011, the payment under section 3.12 and the additional cash payment under section 24.703 are not included in the province’s non-natural resource revenue.

• Marginal note:2005, c. 7, s. 2(7)

  (2) Subsection 6(11) of the Act is repealed.

PART 8R.S., c. 18, Part I (3rd Supp.)OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ACT

Amendments to the Act

174. The heading before section 23 of the Office of the Superintendent of Financial Institutions Act is replaced by the following:

Marginal note:1997, c. 15, s. 339

• 175. (1) Subsection 23(2) of the Act is replaced by the following:

  • Marginal note:Expenses — pension plans

    (1.1) In every fiscal year, the Superintendent shall

    • (a) estimate the total amount of expenses to be incurred by the Office during the following fiscal year for or in connection with the administration of the Pension Benefits Standards Act, 1985; and

    • (b) ascertain the total amount of expenses incurred by the Office during the preceding fiscal year for or in connection with the administration of the Pension Benefits Standards Act, 1985.

  • Marginal note:Amount conclusive

    (2) Any amount ascertained or estimated by the Superintendent under subsection (1) or (1.1), as the case may be, is final and conclusive for the purposes of this section.

• (2) Section 23 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Assessment — pension plans

    (5) In every fiscal year, the Superintendent shall assess, in the prescribed manner, an amount against the administrator of a pension plan. The amount is to be determined as prescribed.

  • Marginal note:Determination of amount assessed

    (6) The determination of the amount referred to in subsection (5) shall take into account the amounts referred to in subsection (1.1).

Marginal note:2001, c. 9, s. 476

176. The portion of subsection 24(1) of the Act before the definition “entity” is replaced by the following:

177. The Act is amended by adding the following after section 37:

Coming into Force

Marginal note:Order in council

178. Sections 174 and 175 come into force on a day to be fixed by order of the Governor in Council.

PART 9R.S., c. 32 (2nd Supp.)PENSION BENEFITS STANDARDS ACT, 1985

Amendments to the Act

• 179. (1) The definition “designated province” in subsection 2(1) of the Pension Benefits Standards Act, 1985 is replaced by the following:

  “designated province”

  « province désignée »

  “designated province” means a province prescribed as a province in which there is in force pension legislation applicable to private superannuation plans;

• (2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  “electronic document”

  « document électronique »

  “electronic document” means any form of representation of information or of concepts fixed in any medium by electronic, optical or other similar means that can be read or perceived by a person or by any means;

  “information system”

  « système d’information »

  “information system” means a system used to generate, send, receive, store or otherwise process an electronic document;

  “multilateral agreement”

  « accord multilatéral »

  “multilateral agreement” means an agreement entered into under subsection 6.1(1);

  “negotiated contribution plan”

  « régime à cotisations négociées »

  “negotiated contribution plan” means a multi-employer pension plan that includes at least one defined benefit provision and under which a participating employer’s contributions are limited to an amount determined in accordance with an agreement entered into by the participating employers or a collective agreement, statute or regulation, and which amount does not vary as a function of the prescribed tests and standards for solvency referred to in subsection 9(1);

• (3) Section 2 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Negotiated contribution plan

    (5) Even though a pension plan — established as a negotiated contribution plan — is no longer a negotiated contribution plan because it has only one participating employer or more than 95% of its members are employed by participating employers who are incorporated and are affiliates within the meaning of the Canada Business Corporations Act, that pension plan is deemed to be a negotiated contribution plan for a period of one year after the day it is no longer a negotiated contribution plan, or for any longer period that may be specified by the Superintendent.

180. Subsection 5(2) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and’’ at the end of paragraph (c) and by adding the following after paragraph (c):

Marginal note:1998, c. 12, s. 4

181. Section 6 of the Act and the heading before it are replaced by the following: