Manitoba 4. The following amounts shall be allowed as the annual Subsidy to Manitoba. subsidy to the Province of Manitoba, and shall be paid yearly to the Province, that is to say, (a) for the support of the Government and Legislature, For Governfifty thousand dollars; ment, etc. ment of per capita allowance according to census. (b) on an estimated population of one hundred and fifty Readjustthousand, at eighty cents per head, one hundred and twenty thousand dollars, subject to be increased as hereinafter mentioned, that is to say, a census of the Province shall be taken in every fifth year, reckoning from the general census of 1881; and an approximate estimate of the population shall be made at equal intervals of time between each quinquennial and decennial census; and whenever the population, by any such census or estimate, exceeds one hundred and fifty thousand, which shall be the minimum on which the said allowance shall be calculated, the amount of the said allowance shall be increased accordingly, and so on, until the population has reached four hundred thousand souls; and (c) as an indemnity for the want of public lands, one Indemnity hundred thousand dollars. R.S., c. 192, s. 4. INTEREST ON DEBT ALLOWANCES 5. (1) In the accounts between the several Provinces of Ontario, Quebec, Nova Scotia, New Brunswick and British Columbia, respectively, and Canada, the amounts payable to and chargeable against the said Provinces respectively, in so far as they depend upon the amount of debt with which each province entered the Union, shall be calculated and allowed as if (a) in the case of the Provinces of Ontario and Quebec respectively, the sum fixed by section 112 of the British North America Act, 1867, was increased from sixty-two million five hundred thousand dollars to seventy-three million six hundred and eighty-eight dollars and eighty-four cents; (b) in the case of the Province of Nova Scotia, the amount fixed by section 114 of the said Act was increased in the same proportion; (c) in the case of the Province of New Brunswick, the amount fixed by section 115 of the said Act, was for want of public lands. Allowances to provinces in relation to amount of debt. As to (d) in the case of the Province of British Columbia, the amount upon which it was to receive interest fixed by or under the terms and conditions on which the Province was admitted into the Dominion was increased in the same proportion. (2) The increased subsidy to be allowed to the Province Nova Scotia. of Nova Scotia under this section shall be based upon the sum of nine million one hundred and eighty-six thousand seven hundred and fifty-six dollars, as if that sum had been mentioned in section 114 of the British North America Act, 1867, instead of the sum of eight million dollars. R.S., c. 192, s. 5. Calculation of allow ances to Ontario and Quebec, and Capital bearing interest at five per cent. As to and Prince Increase. Capital bearing interest at five per cent. 6. (1) In the accounts between the several provinces and Canada, the amounts by which the yearly subsidy to each province was increased by the Act of the Parliament of Canada, passed in the year 1873, chapter 30, as explained with respect to Nova Scotia by the Act of the said Parliament, passed in the year 1874, chapter 3, shall be calculated and allowed to Ontario and Quebec jointly, as having formed the late Province of Canada, and to Nova Scotia and New Brunswick, as if the said Acts had directed that such increase should be allowed from the day of the coming into force of the British North America Act, 1867. (2) The total amount of the half-yearly payments which would in that case have been made on account of such increase from the 1st day of July, 1867, up to and including the 1st day of January, 1873, with interest on each at five per cent per annum, from the day on which it would have been so paid to the 1st day of July, 1884, shall be deemed capital owing to the said Provinces respectively, bearing interest at five per cent per annum, which interest shall be payable to them as part of their yearly subsidies from Canada. R.S., c. 192, s. 6. 7. (1) In the accounts between Canada and the Provinces of British Columbia and Prince Edward Island, the amounts calculated and allowed as the debts of those Provinces respectively, on the 19th day of April, 1884, and on which they were then paid interest by Canada, shall be increased by amounts bearing the same proportion to the respective populations of the said Provinces, as ascertained by the census of 1881, as the total of the amounts to be added under section 6 as capital owing to Ontario and Quebec, Nova Scotia and New Brunswick, bear to the combined population of the four last-named Provinces, as ascertained by the said census of 1881. (2) The amounts of such increases, as regards the said Provinces of British Columbia and Prince Edward Island, shall be deemed capital owing to the said Provinces respectively, bearing interest at the rate of five per cent per annum, which interest shall be payable to them as part of their respective subsidies from Canada. R.S., c. 192, s. 7. 8. The amount of the increase of the yearly subsidy and the capital on which the same is payable to the several provinces respectively, under sections 6 and 7 shall be as follows: Capital and yearly payments specified. interest is payable to Manitoba as subsidy. 9. (1) The capital sum on which the Province of Mani- Calculation of sum on toba is entitled to receive half-yearly payments of interest which at the rate of five per cent per annum, as fixed by the Act of the Parliament of Canada passed in the year 1870, chapter 3, and as readjusted or increased by any subsequent Act, shall continue to be calculated on a population of one hundred and twenty-five thousand, at a rate per capita ascertained by dividing the sum of five hundred and fifty-one thousand four hundred and forty-seven dollars, by seventeen thousand, which was the estimated population of the Province under the said Act, the said sum of five hundred and fifty-one thousand four hundred and forty-seven dollars being the amount of capital on which the Province was entitled to receive interest under and by virtue of section 24 of the Act hereinbefore last cited and chapter 30 of the Acts of the Parliament of Canada passed in the year 1873. thereon. (2) The Province shall be charged with such advances Charges as had, up to the 20th day of July, 1885, been made to the Province, and with such expenditure as had been made therein by the Dominion for purposes of a strictly local character, and with a further sum of one hundred and fifty thousand dollars, which the Dominion Government may advance to the Province to meet the expenditure of constructing a lunatic asylum, and other exceptional services. R.S., c. 192, s. 9. 10. The grant of swamp lands and the grant of lands not exceeding one hundred and fifty thousand acres as an endowment to the University of Manitoba, authorized by Part I of the Manitoba Supplementary Provisions Act, and the payments to the Province of Manitoba hereinbefore authorized, shall be made as a full settlement of all claims made by the said Province for the reimbursement of costs incurred in the government of the disputed territory, or the reference of the boundary question to the Judicial Committee of the Privy Council, and all other questions and claims discussed between the Dominion and the provincial governments, up to the 10th day of January, 1885. R.S., c. 192, s. 10. Payments and grants under R.S.C. 1927, c. 124. Advances authorized. ADVANCES 11. (1) The Governor in Council may, in his discretion, to provinces advance, from time to time, to any province of Canada, any sums required for local improvements in the province, and not exceeding in the whole the amount by which the debt of the province for which Canada is responsible then falls short of the debt with which the province was allowed to enter the Union; but no such advance shall be made to any province unless it has been previously sanctioned by an Act of the legislature of that province. Conditions of such advances. (2) Such advances shall be deemed additions to the debt of the province, and the province may repay them to Canada, on such notice, in such sums and on such conditions as the Government of Canada and that of the Province agree upon; and any amount so repaid shall be deducted from the debt of the province in calculating the subsidy payable to it. R.S., c. 192, s. 11. THE DOMINION-PROVINCIAL TAXATION AGREEMENT ACT, 1942 6 GEORGE VI, CHAPTER 13 An Act to authorize the Governor in Council to enter into agreements with the Governments of the Provinces of Canada respecting the vacation by the provinces of the personal income and corporation tax fields for the duration of the war(1) [Assented to 28th May, 1942.] WHEREAS the Dominion and the provinces and certain Preamble. municipalities have been levying taxes upon incomes and upon corporations, and it is expedient during the continuation of the present war and for a certain re-adjustment period thereafter that the Dominion only should levy such taxes: Therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. This Act may be cited as The Dominion-Provincial Short title. Taxation Agreement Act, 1942. with the provinces. 2. The Minister of Finance, with the approval of the Agreements Governor in Council, may enter into an agreement with the government of any of the provinces of Canada to provide, in accordance with and subject to such terms and conditions as may be set out therein, that the province and its municipalities shall cease to levy personal income and corporation taxes as defined in such agreement and subject to such exceptions as may be set out in such agreement, for the duration of the war and for a certain re-adjustment period thereafter, and to provide for the payment of compensation by the Dominion to the province therefor. Annual amount of 3. The annual amount of such compensation shall be, compen (1) On the second reading of the Bill, that is on the 25th of May, 1942, the Minister of Finance stated that what the provinces were required to do was to vacate the personal income and corporation tax fields for the duration of the agreement which will run one year after the cessation of hostilities unless a province terminates its agreement sooner, that is at the end of any fiscal year. See also the different provincial Acts respecting these agreements, for instance c. 1 of the Statutes of Ontario, 1942, etc. 291 |