Most Canadians care deeply about high quality local media. News from a Canadian perspective about my community and my country is essential.
I am writing to ask you to close a tax loophole in order to encourage Canadian advertisers to spend their money in Canada.
You can read all about it here.
This is a straightforward idea. It’s about treating all ads placed on foreign media the same from a business tax deduction point of view. Currently there is no level playing field. Canadian advertisers are allowed to deduct the cost of ads they purchase on foreign online media but not so for ads purchased on foreign print media and TV. It's a loophole that encourages $5 billion in ad spending to leave the country – mostly to American companies. As a result: Canadian media are starving – and on the brink.
It’s simple in another way. According to an expert study commissioned by Friends of Canadian Broadcasting, no laws need to change to make this happen. All that is required is for the CRA to take a second look at a decision it took 21 years ago. In 1996, the CRA ruled that a website is not a newspaper or television. That might have been true then, but today’s technology renders that opinion obsolete.
Closing this tax loophole will raise more than $1billion a year in new government revenues while diverting as much as $500 million in new advertising to cash strapped Canadian media companies – money that now leaves the country. All Canadian media will benefit.
As you know, the future of local media – and journalism – is essential to Canada’s status as a democratic and independent country. Our media is our message!
I am convinced this is a good idea. Please let me know if you do too.