Common use of NET FISCAL BENEFIT Clause in Contracts

NET FISCAL BENEFIT. ‌ 10.1 Other than as set out in this Agreement, Resource Revenues and the tax bases associated with Resource Revenues shall not be included in the calculation of the Territorial Formula Financing Payment. 10.2 In respect of Resource Revenues derived in each fiscal year beginning on the Transfer Date, an amount equal to 100 percent of the Resource Revenue Subject to Offset shall be deducted from the GNWT’s Territorial Formula Financing Payment.‌ 10.3 For the purpose of section 10.2, Resource Revenue Subject to Offset in a fiscal year shall be equal to total Resource Revenues less the lesser of:‌ (a) 50 percent of Resource Revenues, or, (b) five percent of the GNWT’s Gross Expenditure Base used in the determination of the GNWT’s Territorial Formula Financing Payment for the fiscal year to which the Resource Revenues are attributable. 10.4 The GNWT shall be responsible for making Settlement and Land Claim Agreement Payments. 10.5 The GNWT shall provide the Minister of Finance of Canada with an assessment of the amount of Resource Revenues derived in each fiscal year on or before December 1 of the following fiscal year. 10.6 Sections 10.2 and 10.3 may be amended with the written consent of Canada and the GNWT. 10.7 The GNWT shall Consult Aboriginal Parties with respect to any proposed amendment of sections 10.2 and 10.3. 10.8 Canada and the GNWT shall conduct a review of sections 10.2 and 10.3:‌ (a) in the fifth year following the Transfer Date and at five year intervals thereafter; or (b) at any other time as may be agreed by Canada and the GNWT. 10.9 The purpose of the review referred to in section 10.8 is to ensure that the Net Fiscal Benefit: (a) remains consistent with the principles of Territorial Formula Financing Payments; (b) corresponds to the benefits received by resource-producing provincial jurisdictions under the provincial equalization program; and (c) continues to provide an additional incentive for the Northwest Territories to develop natural resources. 10.10 Canada and the GNWT shall make best efforts to complete a review referred to in section 10.8 within six months from the beginning of the review.‌ 10.11 Unless otherwise agreed by Canada and the GNWT, any adjustment arising from a review referred to in section 10.8 shall take effect on April 1st of the fiscal year immediately following the review.‌ 10.12 Notwithstanding section 10.11, if, despite making best efforts, Canada and the GNWT are unable to complete the review within the six month period referred to in section 10.10, Canada and the GNWT shall, as part of the review, determine the implementation date of any adjustment arising from the review.