I am all about supporting the arts, but it has to be done in the right way. All I see from local broadcasting is the demand for more money to create local content. Yet these same local broadcaster are sitting on a gold mine when it comes to licensing their vault either through netflix or tubiTv or other media sources like blu ray or dvd.

1. GOVERNMENT POLICY –
BROADCASTING– CANADA –
ANALYSIS AND COMMENTS –
JUNE 16, 2017
BY: PAUL YOUNG, CPA, CGA
DATE: JUNE 16, 2017

2. PAUL YOUNG - BIO
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Advance Technology and Market Entry
• SME – Supply Chain Management
• SME – Business Strategy and Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. PRESENTATION
• This presentation will discuss the broadcasting industry in Canada

4. AGENDA
• Radio and Broadcasting – Operational Performance – 2011 to 2015
• Film Tax Credits – Canada

5. SUMMARY
• CBC receives over $1B in funding and shows an Operating Loss
• Broadcasting industry made 20% of revenue in pre-tax operating income

6. BROADCASTING INDUSTRY
Source - http://www.statcan.gc.ca/tables-tableaux/sum-
som/l01/cst01/comm02e-eng.htm
Comment:
• CBC receives over 1B in funding and runs an
Operating loss
• Broadcasting sector in general sees a healthy
operating income of 21% of revenue
Source – CBC

7. FILM TAX CREDIT
• There are both Federal and Provincial Programs to support entertainment and media in Canada
• Canada has long been one of the preferred places to complete film projects by foreign producers due to the various federal and
provincial tax credits available. The Canadian government has been proactive in encouraging investment by domestic and foreign
producers by instituting tax credits to help offset the cost of production. This has had a major positive impact on the domestic
film production industry, which now has more than 127,700 employees, and an annual revenue of approximately $5.81 billion.
• Given the benefits of being able to access these tax credits, AG Tax professionals have prepared a brief summary of the credits
available to the film production industry. We have provided details on existing provincial tax credits, and also analyzed recent
changes to them, so that film producing companies can plan their tax measures accordingly.
• Source - https://www.pwc.com/ca/en/entertainment-media/publications/pwc-big-table-film-video-2015-09-en.pdf
• Source - http://agtax.ca/cra/canadian-tax-credits-for-the-film-production-industry

8. NETFLIX TAX
• https://www.theglobeandmail.com/news/politics/liberal-mps-call-for-5-per-cent-tax-on-streaming-services/article35313367/
A Liberal-dominated committee will be calling for a 5-per-cent tax on
broadband Internet services to fund Canada’s media industries, which
are struggling to adapt to technological changes and evolving consumer
habits, sources said.
The move would add hundreds of millions of dollars in revenues to the
Canadian Media Fund, which already receives a levy on cable bills to
finance the production of Canadian content. However, it would open up
the government to accusations that it is once again raising taxes on
consumers.
• There are already programs in place like tax credit programs for the entertainment industry
• CBC needs to look at their vault and license the vault as part of digitalizing their content
• Forcing taxpayers to pay into fund for local broadcasting is wrong. If network in Canada want to
produce content then come up with original ideas like they did in the past

9. CORNERGAS MOVIE
http://news.nationalpost.com/news/canada/corner-gas-movies-8-5m-budget-is-75-from-government-funding-despite-success-of-the-
original-tv-series