Tax Collection Agreements and Federal Post-Secondary Education and Health Contributions Regulations, 1987

The Tax Collection Agreements and Federal Post-Secondary Education and Health Contributions Regulations, 1987, outline the framework for payments between the Government of Canada and provinces in respect of federal post-secondary education and health contributions. The regulations aim to provide equalization payments to provinces based on their population size.

To determine the population of a province, the Chief Statistician of Canada uses data from Statistics Canada, including census results or official estimates of the population for June 1st. For fiscal years beginning in April 1987 and after, advance payments can be made to provinces by the Minister out of the Consolidated Revenue Fund on the basis of estimates calculated in accordance with tax collection agreements.

The regulations also provide for adjustments to equalization payments based on changes in population or revenue bases. To ensure consistency with data used for computing payments to provinces under tax collection agreements, advance payments may be adjusted during a fiscal year.

Furthermore, the regulations outline procedures for making advance payments to provinces and furnishing statements outlining method used in determining amounts payable to provinces. In addition, regulations provide details for alternative payment methods for certain programs.

Finally, the regulations set out provisions regarding transfer payments with respect to preferred share dividend taxes under Parts IV.1 and VI.1 of the Income Tax Act.