Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Definitions

• 19.01 (1) The definitions in this subsection apply in this section.

  advertisement directed at the Canadian market

  advertisement directed at the Canadian market has the same meaning as the expression directed at the Canadian market in section 2 of the Foreign Publishers Advertising Services Act and includes a reference to that expression made by or under that Act. (annonce destinée au marché canadien)

  original editorial content

  original editorial content in respect of an issue of a periodical means non-advertising content

  • (a) the author of which is a Canadian citizen or a permanent resident of Canada within the meaning assigned by the Immigration Act and, for this purpose, “author” includes a writer, a journalist, an illustrator and a photographer; or

  • (b) that is created for the Canadian market and has not been published in any other edition of that issue of the periodical published outside Canada. (contenu rédactionnel original)

  periodical

  periodical has the meaning assigned by section 2 of the Foreign Publishers Advertising Services Act. (périodique)

• Marginal note:Limitation re advertising expenses — periodicals

  (2) Subject to subsections (3) and (4), in computing income, no deduction shall be made by a taxpayer in respect of an otherwise deductible outlay or expense for advertising space in an issue of a periodical for an advertisement directed at the Canadian market.

• Marginal note:100% deduction

  (3) A taxpayer may deduct in computing income an outlay or expense of the taxpayer for advertising space in an issue of a periodical for an advertisement directed at the Canadian market if

  • (a) the original editorial content in the issue is 80% or more of the total non-advertising content in the issue; and

  • (b) the outlay or expense would, but for subsection (2), be deductible in computing the taxpayer’s income.

• Marginal note:50% deduction

  (4) A taxpayer may deduct in computing income 50% of an outlay or expense of the taxpayer for advertising space in an issue of a periodical for an advertisement directed at the Canadian market if

  • (a) the original editorial content in the issue is less than 80% of the total non-advertising content in the issue; and

  • (b) the outlay or expense would, but for subsection (2), be deductible in computing the taxpayer’s income.

• Marginal note:Application

  (5) For the purposes of subsections (3) and (4),

  • (a) the percentage that original editorial content is of total non-advertising content is the percentage that the total space occupied by original editorial content in the issue is of the total space occupied by non-advertising content in the issue; and

  • (b) the Minister may obtain the advice of the Department of Canadian Heritage for the purpose of

    • (i) determining the result obtained under paragraph (a), and

    • (ii) interpreting any expression defined in this section that is defined in the Foreign Publishers Advertising Services Act.

• Marginal note:Editions of issues

  (6) For the purposes of this section,

  • (a) where an issue of a periodical is published in several versions, each version is an edition of that issue; and

  • (b) where an issue of a periodical is published in only one version, that version is an edition of that issue.