Income Tax Act

Marginal note:Limitation re advertising expense — newspapers

• 19 (1) In computing income, no deduction shall be made in respect of an otherwise deductible outlay or expense of a taxpayer for advertising space in an issue of a newspaper for an advertisement directed primarily to a market in Canada unless

  • (a) the issue is a Canadian issue of a Canadian newspaper; or

  • (b) the issue is an issue of a newspaper that would be a Canadian issue of a Canadian newspaper except that

    • (i) its type has been wholly set in the United States or has been partly set in the United States with the remainder having been set in Canada, or

    • (ii) it has been wholly printed in the United States or has been partly printed in the United States with the remainder having been printed in Canada.

• Marginal note:Where s. (1) does not apply

  (3) Subsection 19(1) does not apply with respect to an advertisement in a special issue or edition of a newspaper that is edited in whole or in part and printed and published outside Canada if that special issue or edition is devoted to features or news related primarily to Canada and the publishers thereof publish such an issue or edition not more frequently than twice a year.

• Marginal note:Definitions

  (5) In this section,

  Canadian issue

  Canadian issue of a newspaper means an issue, including a special issue,

  • (a) the type of which, other than the type for advertisements or features, is set in Canada,

  • (b) all of which, exclusive of any comics supplement, is printed in Canada,

  • (c) that is edited in Canada by individuals resident in Canada, and

  • (d) that is published in Canada; (édition canadienne)

  Canadian newspaper

  Canadian newspaper means a newspaper the exclusive right to produce and publish issues of which is held by one or more of the following:

  • (a) a Canadian citizen,

  • (b) a partnership

    • (i) in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by, and

    • (ii) at least 3/4 of each income or loss of which from any source is included in the determination of the income of,

    corporations described in paragraph (e) or Canadian citizens or any combination thereof,

  • (c) an association or society of which at least 3/4 of the members are Canadian citizens,

  • (d) Her Majesty in right of Canada or a province, or a municipality in Canada, or

  • (e) a corporation

    • (i) that is incorporated under the laws of Canada or a province,

    • (ii) of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and

    • (iii) that, if it is a corporation having share capital, is

      • (A) a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or

      • (B) a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada,

      and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that

      • (C) the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholder

      is of

      • (D) the fair market value of all the issued shares of the capital stock of the holding corporation outstanding at that time,

      and where at any time shares of a class of the capital stock of a corporation are owned, or are deemed by this definition to be owned, by a partnership, each member of the partnership shall be deemed to own at that time the least proportion of the number of such shares of that class that

      • (E) the member’s share of the income or loss of the partnership from any source for its fiscal period that includes that time

      is of

      • (F) the income or loss of the partnership from that source for its fiscal period that includes that time,

      and for this purpose, where the income and loss of a partnership from any source for a fiscal period are nil, the partnership shall be deemed to have had income from that source for that period in the amount of $1,000,000; (journal canadien)

  substantially the same

  substantially the same[Repealed, 2001, c. 17, s. 11(2)]

  United States

  United States means

  • (a) the United States of America, but does not include Puerto Rico, the Virgin Islands, Guam or any other United States possession or territory, and

  • (b) any areas beyond the territorial sea of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the seabed and subsoil and the natural resources of those areas. (États-Unis)

• Marginal note:Interpretation

  (5.1) In this section, each of the following is deemed to be a Canadian citizen:

  • (a) a trust or corporation described in paragraph 149(1)(o) or (o.1) formed in connection with a pension plan that exists for the benefit of individuals a majority of whom are Canadian citizens;

  • (b) a trust described in paragraph 149(1)(r) or (x), the annuitant in respect of which is a Canadian citizen;

  • (c) a mutual fund trust, within the meaning assigned by subsection 132(6), other than a mutual fund trust the majority of the units of which are held by citizens or subjects of a country other than Canada;

  • (d) a trust, each beneficiary of which is a person, partnership, association or society described in any of paragraphs (a) to (e) of the definition Canadian newspaper in subsection (5); and

  • (e) a person, association or society described in paragraph (c) or (d) of the definition Canadian newspaper in subsection (5).

• Marginal note:Trust property

  (6) Where the right that is held by any person, partnership, association or society described in the definition Canadian newspaper in subsection (5) to produce and publish issues of a newspaper is held as property of a trust or estate, the newspaper is not a Canadian newspaper unless each beneficiary under the trust or estate is a person, partnership, association or society described in that definition.

• Marginal note:Grace period

  (7) A Canadian newspaper that would, but for this subsection, cease to be a Canadian newspaper, is deemed to continue to be a Canadian newspaper until the end of the 12th month that follows the month in which it would, but for this subsection, have ceased to be a Canadian newspaper.

• Marginal note:Non-Canadian newspaper

  (8) Where at any time one or more persons or partnerships that are not described in any of paragraphs (a) to (e) of the definition Canadian newspaper in subsection (5) have any direct or indirect influence that, if exercised, would result in control in fact of a person or partnership that holds a right to produce or publish issues of a newspaper, the newspaper is deemed not to be a Canadian newspaper at that time.