Contents
Short Title
1Short title#
This Act may be cited as the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act.
Interpretation
2Definitions#
The following definitions apply in this Act.
Canada–Newfoundland and Labrador Arrangement means the Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues signed on February 14, 2005. (Entente Canada – Terre-Neuve-et- Labrador)
Canada–Nova Scotia Arrangement means the Arrangement between the Government of Canada and the Government of Nova Scotia on Offshore Revenues signed on February 14, 2005. (Entente Canada – Nouvelle-Écosse)
Purpose
3Purpose of the Act#
The purpose of this Act is to implement the Canada–Newfoundland and Labrador Arrangement and the Canada–Nova Scotia Arrangement.
Part 1 · Additional Fiscal Equalization Offset Payments for Nova Scotia
4Definitions#
The following definitions apply in this Part.
additional fiscal equalization offset payment means the payment that may be made under section 6, 7 or 12. (paiement de péréquation compensatoire supplémentaire)
fiscal equalization offset payment [Repealed, 2015, c. 4, s. 110]
(a)for the purposes of section 8, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord-ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and
(b)for the purposes of sections 10 to 12, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula
offshore revenue in respect of any fiscal year means the aggregate of the following amounts paid to the Province for that fiscal year:
(a)amounts paid under paragraph 219(2)(b) of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act;
(b)amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Nova Scotia offshore area, within the meaning of subsection 123(1) of that Act; and
(c)amounts paid with respect to tax that would be payable under Part III of the Income Tax Act (Nova Scotia), R.S.N.S. 1989, c. 217, as amended from time to time, on taxable capital of a corporation employed in the offshore area within the meaning of section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act if that area were in the land portion of the Province, unless those amounts have been included in paragraph (a). (recettes extracôtières)
petroleum has the same meaning as in section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act. (hydrocarbures)
note
6Additional fiscal equalization offset payment of $30.5 million#
(1)For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $30.5 million.
(2)For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $26.6 million.
7Additional fiscal equalization offset payments for the 2006-2012 period#
For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 8.
8Calculation of payments#
The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formulanote
9Restriction#
Despite any other provision of this Act, no payment shall be made under sections 6 to 8 except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $830 million.
10Restriction#
For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 7 if it does not receive a fiscal equalization payment for that fiscal year.
12Additional fiscal equalization offset payments for the 2012-2020 period#
(1)For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 8 if
(a)the Province qualified for a fiscal equalization payment in the 2010-2011 or 2011-2012 fiscal year;
(b)the Province’s per capita net debt as of March 31, 2012 was not lower than that of at least four other provinces; and
(c)the Province receives a fiscal equalization payment for that fiscal year.
(3)For the 2020-2021 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $85,626,000.
(4)For any fiscal year between April 1, 2021 and March 31, 2023, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 8, if the Province receives a fiscal equalization payment for that fiscal year.
note
13Restriction#
For greater certainty, if the Province does not meet the conditions set out in paragraphs 12(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 12 for any of the fiscal years between April 1, 2012 and March 31, 2020.
14Transitional payments for the 2012-2020 period#
(1)If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.
(2)If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.
15Review of the Canada–Nova Scotia Arrangement#
On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Nova Scotia Arrangement in accordance with clause 8 of that Arrangement.
16Discussions#
The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Nova Scotia Arrangement.
17Determination#
A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
Part 2 · Additional Fiscal Equalization Offset Payments for Newfoundland and Labrador
18Definitions#
The following definitions apply in this Part.
additional fiscal equalization offset payment means the payment that may be made under section 20, 21 or 26. (paiement de péréquation compensatoire supplémentaire)
fiscal equalization offset payment [Repealed, 2015, c. 4, s. 113]
(a)for the purposes of section 22, the fiscal equalization payment that would be received by the Province for a fiscal year if the amount of that payment were determined in accord- ance with section 3.2 of the Federal-Provincial Fiscal Arrangements Act, without regard to section 3.4 of that Act; and
(b)for the purposes of sections 24 to 26, the fiscal equalization payment that would be received by the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act if the Province’s total per capita fiscal capacity were the amount determined by the formula
offshore revenue, in respect of any fiscal year, means the aggregate of the following amounts paid to the Province for that fiscal year:
(a)amounts paid under paragraph 214(2)(b) of the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act;
(b)amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Newfoundland offshore area, within the meaning of subsection 123(1) of that Act; and
(c)the royalties paid under the Hibernia Development Project Royalty Agreement signed on September 1, 1990, as amended from time to time. (recettes extracôtières)
petroleum has the same meaning as in section 2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act. (hydrocarbures)
20Additional fiscal equalization offset payment of $133.6 million#
(1)For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $133.6 million.
(2)For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $188.7 million.
21Additional fiscal equalization offset payment for the 2006-2012 period#
For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 22.
22Calculation of payments#
The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formulanote
24Restriction#
For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 21 if it does not receive a fiscal equalization payment for that fiscal year.
26Additional fiscal equalization offset payments for the 2012-2020 period#
(1)For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 22, if
(a)the Province qualified for a fiscal equalization payment in either of the 2010-2011 or 2011-2012 fiscal years;
(b)the Province’s per capita debt servicing charges as of March 31, 2012 were not lower than those of at least four other provinces; and
(c)the Province receives a fiscal equalization payment for that fiscal year.
(2)For the purpose of paragraph (1)(b), “per capita debt servicing charges” as of March 31, 2012, means the amount determined by the Minister in accordance with the formula
27Restriction#
For greater certainty, if the Province does not meet the conditions set out in paragraphs 26(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 26 for any of the fiscal years between April 1, 2012 and March 31, 2020.
28Transitional payments for the 2012-2020 period#
(1)If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.
(2)If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.
31Determination#
A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary to be made for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.
Part 3 · General Provisions
33Regulations#
(1)The Governor in Council may make regulations, on the recommendation of the Minister,
(a)prescribing the time and manner of making any payments under this Act;
(b)respecting the determination of the amount referred to in subsection 12(2);
(c)respecting the determination of any matter that under this Act is to be determined by the Minister; and
(d)prescribing anything that is required or authorized to be prescribed by this Act.
Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.