The Canada Revenue Agency has recently updated its guidance on the income tax measures to support journalism. These new changes include adjustments to the legislation announced when Bill C-30 was passed.
Some relevant information publishers should be aware of include:
Qualified Canadian journalism organization (QCJO)
- The effective date of QCJO designation is now the date of application, unless otherwise specified;
- The definition of “original news content,” and the types of activities that a regularly employed journalist would generally be engaged in, were clarified with more examples;
- Employees hired as part of the LJI can be considered regularly employed journalists so long as an employment relationship with the QCJO can be established;
- The information organizations should provide the CRA when the undergo reorganizations was clarified.
Digital news subscription tax credit
- The word “original” was removed from the definition of “digital news subscription”. This make it easier for organizations to meet the legislative requirements;
- QCJOs whose digital news subscriptions are no longer eligible for the Digital news subscription tax credit must notify their subscribers.
Registered journalism organization (RJO)
- Information was added on recourse mechanisms available to an RJO regarding penalties it has been assessed.
If you have any questions about these changes, please contact CRA directly through their online query form.