There are two elements to consider, namely the tax on digital businesses and issues related to taxation.
Normally, any business operating in Canada must be subject to taxation. Next, there are financial contribution obligations that arise from the Broadcasting Act.
Today, radio stations contribute 0.5% of their revenues to the funding of various funds supporting music creation, production and marketing. As for online broadcasting companies, according to a decision made by the CRTC a year ago, they must contribute 5% of their revenues.
This decision is being challenged by some digital companies in court, but we believe that it’s indeed an important element to continue ensuring the funding of our system.
Moreover, part of this money is allocated to music funds, but another portion is designated for community radio funds, in particular.
