The Government of Canada must use any imputed interest savings from reductions of federal debt for individual tax relief, and the Minister of Finance must report on those savings at least once every fiscal year.
An Act to dedicate to personal tax relief imputed interest savings resulting from reductions of federal debt Short title This Act may be cited as the Tax-back Guarantee Act. Direction to provide personal tax relief The Government of Canada shall apply any imputed interest savings resulting from reductions of federal debt to measures that provide tax relief for individuals. Meaning of federal debt In this Act, federal debt means the accumulated deficit as stated in the Public Accounts prepared in accordance with sections 63 and 64 of the Financial Administration Act in respect of a fiscal year. Imputed interest savings The imputed interest savings in respect of a fiscal year of the Government of Canada is the amount determined by the Minister of Finance to be the product of multiplying the total amount by which federal debt was reduced in the year by the effective interest rate for the year. Effective interest rate The effective interest rate for a fiscal year is the ratio of the amount of public debt charges related to unmatured debt (as stated in the Public Accounts for the year) to the average amount of unmatured debt for the year (determined by dividing by two the sum of the amount of unmatured debt at the beginning of the year and the amount of unmatured debt at the end of the year, as those amounts are stated in the Public Accounts for the year). Public announcement At least once every fiscal year, the Minister of Finance shall report, by way of a statement tabled in the House of Commons or other public announcement, the finalized determination of the imputed interest savings in respect of the previous fiscal year; and an accounting of the measures to which those savings have been applied in accordance with section 2.