Amendments which affect productions accessing ‘Canadian Content’ credits have been made to Sections 125.4, 241, and 1106 of the Income Tax Act.
The amendments to Section 125.4 include updates to the definitions of ‘assistance’, ‘salary and wages’, and ‘labour expenditure’.
The amendments to Section 241 allows CAVCO to make public some limited information, such as the names of the individuals for whom points were awarded, and the names of the producers, for productions certified by CAVCO.
Read the full text of the amendments to Sections 125.4 and 241 here
The amendments to Section 1106 include:
1. Copyright ownership updates:
· The production company or a ‘prescribed person’ may be a ‘copyright owner’ of a production
· The ‘copyright owner’, is now defined as:
o ‘the maker’ who owns ‘copyright’,or
o a person to whom copyright has been assigned by contract
· The right of a person to participate in profits from a production does not make them a copyright owner
· The granting of an exclusive license is not an assignment of copyright
2. Prescribed persons updates:
· The definition of ‘prescribed person’ now also includes the following:
o a prescribed taxable Canadian corporation,
o an individual who is a Canadian citizen or permanent resident, and
o a partnership composed entirely of other prescribed persons
A prescribed person can:
· invest in a production,
· participate in profits generated from a production, and/or
· own copyright in a production
A non-prescribed person can invest in or participate in profits from a production, but only if they do not in any way share in the copyright ownership.
Read the full text of the amendments to Section 1106 here