MATHEMATICAL FORMULAS

If a provision contains a calculation, it may be useful to use a mathematical formula so that the provision is not overly cumbersome and the message is clear. Formulas are commonly used in regulations such as the Income Tax Regulations that deal with fiscal matters.

Here are some examples of provisions containing mathematical formulas:

Example 1:

  35. (1) Subject to subsection (2), a grant shall not be made under section 34 to a qualifying student if it would cause the aggregate of all grants made under that section by an appropriate authority or other body to exceed, for a loan year, an amount determined by the formula

(A × B)/C

where

• A
  is the estimated number of all persons, on the first day of the previous loan year, who were living in the province, who had attained 18 years of age and who had not attained 25 years of age, as determined by the Minister after consultation with the Chief Statistician of Canada;
  
  
• B
  is the amount set by the Minister for the current loan year, in consultation with the Minister of Finance; and
  
  
• C
  is the estimated number of all persons, on the first day of the previous loan year, who live in a province to which section 14 of the Act does not apply, who had attained 18 years of age and who had not attained 25 years of age, as determined by the Minister after consultation with the Chief Statistician of Canada.
  
  

Note: Mathematical signs other than the oblique stroke are preceded and followed by spaces. The description of the elements are listed in the order in which the elements appear in the formula.

Example 2:

(5) The family supplement is the amount, rounded off to the nearest dollar, determined by the formula

A - ((A × B)/5 000)

where

• A  is equal to the percentage set out in subsection (7) multiplied by 12/52 of the amount of the child tax benefit referred to in subsection (3); and

• B is

  • (a) the amount, not greater than $5,000, by which the adjusted income, for the base taxation year in which the month that includes the Sunday of the relevant week falls, of the person in receipt of the child tax benefit exceeds $20,921, if the adjusted income exceeds that amount, and

  • (b) zero, if the adjusted income is less than $20,921.

Example 3:

"Tier I province" means, for the 12-month period beginning on April 1 of a calendar year, a province in respect of which the result of

A/B + C/D

expressed as a percentage, is less than 17%, as calculated on April 1 of that year on the basis of the immediately preceding calendar year,

where

• A is the total number of persons granted landing as investors in that province in that calendar year on the basis of an immigrant visa naming that province as the province of destination for the investor;

• B  is the total number of persons granted landing as investors in Canada in that calendar year;

• C is the amount of investments made in that province by all persons granted landing as investors in that calendar year; and

• D is the amount of investments made in Canada by all persons granted landing as investors in that calendar year.

Part 4 – Table of contents