I can't specify the exact year, but the provision dates back to a time when the media was basically traditional. Digital media didn't exist yet.
The objective was to ensure that, when a Canadian company purchased advertising in a foreign media outlet like The New York Times, the expenses incurred could not be deducted like they could if it had been in a Canadian media outlet like La Presse.
The measure was designed before the advent of digital platforms. That is precisely why an update is needed. The Income Tax Act, as it is currently written, focuses on traditional media and doesn't take into account digital media. It's that disconnect that is now creating a loophole.