Thank you for your question.
I can say that, when it comes to advertising, not all advertisers focus on foreign platforms. Across our markets, we have customers who choose to support local media. I could give many, many examples. It is therefore inaccurate to say that all companies focus on foreign media for their advertising.
Local advertising is actually the bread and butter of stations across our network.
Second, we believe that the proposed measure would be foundational for the media industry. A tax credit for advertising would be a significant incentive to encourage advertisers to focus on local media.
Third, I need to clarify something about subsection 19(1) of the Income Tax Act. This subsection was originally included in the act to protect Canadian media and encourage investment in Canada.
Unfortunately, it has not been updated over time. Today, there is a loophole that allows platforms such as Meta and Facebook to be considered Canadian media. As a result, advertising expenses incurred on these platforms can be deducted.
All we're asking for is that this provision be adjusted to bring it back to its original spirit, which was to support Canadian media, because right now there's a loophole.