Federal-Provincial Fiscal Arrangements Regulations, 2007

The Federal-Provincial Fiscal Arrangements Regulations, 2007 are a set of regulations made under the Federal-Provincial Fiscal Arrangements Act. These regulations establish the framework for fiscal arrangements between the federal government and the provinces and territories in Canada.

The regulations provide definitions for various terms used in the Act, including adjusted number of litres of diesel fuel taxed at road-use rate, adjusted number of litres of gasoline taxed at road-use rate, assessed market value of commercial-industrial property, and assessed market value of residential property.

Parts 1 and 1.1 of the Regulations apply to payments made under Parts I and I.1 of the Act for fiscal years beginning on or after April 1, 2014, while Part 2 applies to payments made under Part II of the Act for fiscal years beginning on or after April 1, 2012.

The regulations also provide definitions for various business sectors, including household final consumption expenditure category, housing expenditure category, and provincial and territorial general government sector.

One key aspect of these regulations is the calculation of allocated corporation taxable income attributable to a province, which is used to determine fiscal equalization payments. This calculation involves assessing the amount of taxable income earned by corporations in each province and applying various formulas to determine the final amount.

The regulations also provide for certain exclusions from revenue sources or bases under Part 1 or 1.1, including amounts obtained through debt retirement charges levied under the Electricity Act, 1998.

Overall, these regulations aim to establish a fair and equitable system of fiscal arrangements between the federal government and the provinces and territories in Canada.