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BROADCASTING ACT
BROADCASTING LICENCE FEE REGULATIONS, 1997
INTERPRETATION
1. The definitions in this section apply in these Regulations. "associated corporation" has the meaning assigned to that expression in section 256 of the Income Tax Act.
(société associée)
"exemption level" means
(a) for a distribution undertaking, $175,000;
(b) for a television undertaking, $1.5 million; and
(c) for a radio undertaking,
(i) subject to subparagraph (ii),
(A) where the fee revenue of the undertaking is $2 million or less, $2 million, and
(B) where the fee revenue of the undertaking is greater than $2 million, $500,000, and
(ii) in the case of a joint radio undertaking,
(A) where the combined fee revenue of the radio undertakings is $4 million or less, $4 million, and
(B) where the combined fee revenue of the radio undertakings is greater than $4 million, $500,000.
(franchise)
"fee revenue", in respect of a licensee of a broadcasting undertaking, means the gross revenue derived during a return year from the licensed activity of the licensee, whether received by the licensee or by an associated corporation, and, without limiting the generality of the foregoing, includes
(a) any revenue received in respect of all transmitters forming part of the undertaking, where the broadcasting undertaking consists of more than one transmitter;
(b) the estimated annual revenue, based on the trends of the market in which the undertaking is licensed to operate, the previous financial performance of the undertaking, and, where applicable, the licensee's business plan for the first 12 months of operations, where the licensee has not filed a licence fee return covering 12 months of the most recently completed return year; and
(c) revenue that is derived from the sale of air time of the broadcasting undertaking by the Corporation and paid by the Corporation to the licensee.
This definition does not include any amount received by the licensee from another licensee, other than the amounts received from the Corporation for the sale of air time.
(recettes désignées)
"fiscal year" means the one-year period beginning April 1 in any year.
(exercice)
"joint radio undertaking" means an AM radio undertaking and an FM radio
undertaking operated by the same licensee, or by a licensee and an associated corporation, where any part of the FM 3 mV/m contour overlaps any part of the AM daytime 15 mV/m contour.
(entreprise de radio conjointe)
"licensee" means a person licensed to carry on a broadcasting undertaking.
(titulaire)
"Part I licence fee" means the licence fee set out in Part I. (droits de licence de la partie I)
"Part II licence fee" means the licence fee set out in Part II. (droits de licence de la partie II)
"radio undertaking" includes a broadcasting undertaking licensed by the Commission as a (Radio) Programming Undertaking, a (Pay-Audio) Programming Undertaking or a (Radio) Network.
(entreprise de radio)
"return year" means the one-year period beginning September 1 in any year.
(année de rapport)
"television undertaking" includes a broadcasting undertaking licensed by the Commission as a (Television) Programming Undertaking, a (Pay-TV) Programming Undertaking, a (Satellite- to-Cable) Programming Undertaking, a (Specialty) Programming Undertaking, a (Direct-to-home pay-per-view) Programming Undertaking, a (Video-on-demand) Programming Undertaking or a (Television) Network.
(entreprise de télévision)
APPLICATION
2. These Regulations apply to all licensees other than
(a) a radio undertaking or a television undertaking licensed by the Commission as a student broadcasting undertaking, a native broadcasting undertaking, a community broadcasting undertaking or a campus/community broadcasting undertaking;
(b) broadcasting undertakings carried on by the Corporation; and
(c) an independent corporation, as defined in the Direction to the CRTC (Ineligibility to Hold Broadcasting Licences), which derives none of its revenues from the sale of air time.
FEES
3. Every licensee shall pay annually to the Commission
(a) a Part I licence fee, payable 30 days after the date of the invoice from the Commission; and
(b) a Part II licence fee, payable on or before November 30 in each year.
4. Where a fee referred to in section 3 has become due but remains unpaid, the licensee shall pay interest and administrative charges in accordance with the Interest and Administrative Charges Regulations.
LICENCE FEE RETURNS
5. On or before November 30 in each year, every licensee whose fee revenue for the most recently completed return year exceeds the exemption level shall file with the Commission a licence fee return, on the form provided by the Commission, with respect to each broadcasting undertaking that is carried on by the licensee.
6. A licence fee return filed pursuant to section 5 shall contain the information required in the form referred to in that section for the one-year period beginning September 1 of the year preceding the calendar year in which the return
is required to be filed.
PART I
PART I LICENCE FEE
7. The components of a Part I licence fee shall consist of
(a) an initial amount calculated in accordance with subsection 8(1); and
(b) an annual adjustment amount calculated in accordance with subsection 8(2).
8. (1) The initial amount shall be calculated by the Commission using the formula
(A / B) x C
where
A is the licensee's fee revenues for the most recently completed return year, less that licensee's exemption level for that return year;
B is the aggregate fee revenues for the most recently completed return year of all licensees whose fee revenues exceed the applicable exemption levels, less the aggregate exemption level for all those licensees for that return year; and
C is the estimated total regulatory costs of the Commission for the current fiscal year as calculated in accordance with section 9.
(2) The annual adjustment amount shall be calculated by the Commission using the following formula
(A / B) x D
where
A is the licensee's fee revenues for the most recently completed return year, less that licensee's exemption level for that return year;
B is the aggregate fee revenues for the most recently completed return
year of all licensees whose fee revenues exceed the applicable exemption levels, less the aggregate exemption level for all those licensees for that year; and
D is the difference between the estimated total regulatory costs and the actual total regulatory costs of the Commission for the fiscal year as calculated in accordance with section 9.
(3) The annual adjustment amount referred to in subsection (2) shall be charged or credited to the licensee in the following year's invoice and shall not, in any case, result in a disbursement of monies on the part of the Commission.
9. (1) The estimated total regulatory costs of the Commission for the current fiscal year is the sum of the following amounts as set out in the Commission's Expenditure Plan published in Part III of The Estimates of the Government of Canada:
(a) the costs of the Commission's Broadcasting Activity; and
(b) the share that is attributable to the Commission's Broadcasting Activity of
(i) the costs of the Commission's administrative activities, and
(ii) the other costs that are taken into account to arrive at the net cost of the Commission's program, excluding the costs of regulating the broadcasting spectrum.
(2) The actual total regulatory costs of the Commission shall be calculated in accordance with subsection (1) using actual amounts.
10. The Commission shall publish, each year, the estimated total regulatory costs referred to in subsection 9(1) in a public notice in the Canada Gazette, Part I.
PART II
PART II LICENCE FEE
11. A Part II licence fee shall consist of an annual licence fee, based on the fee revenue of a licensee for the return year that terminated in the current calendar year or during that portion of that return year in which the licensee held the licence to operate the undertaking, the amount of which shall be calculated as follows:
(a) for a distribution or a television undertaking, 1.365 per cent of the amount by which the fee revenue exceeds the applicable exemption level; and
(b) for a radio undertaking,
(i) subject to subparagraph (ii), 1.365 per cent of the amount by which the fee revenue exceeds the applicable exemption level, and
(ii) in the case of a joint radio undertaking, 1.365 per cent of the amount by which the combined fee revenue exceeds the applicable exemption level.
REPEAL
12. The Broadcasting Licence Fee Regulations are repealed.
COMING INTO FORCE
13. These Regulations come into force on April 1, 1997. Date modified:
2001-12-13
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