Newspapers

Canadian Heritage develops, implements and maintains publishing policies and programs in support of small community newspapers and to help create a stronger publishing industry in Canada.

For more than a century, the Government of Canada has had programs and policies to support the production, distribution and promotion of Canadian books, magazines and newspapers that reflect Canada's unique and dynamic culture. Canadians must have access to Canadian voices and Canadian stories. Looking to the future, the cultural sector must continue to adapt so as to benefit fully from a changing global economy. For the Government of Canada, this means searching for innovative ways to support publishers so they can take advantage of opportunities available both at home and abroad.

The Publications Assistance Program (PAP) for small weekly newspaper publishers is administered by the Department of Canadian Heritage.

The newspaper industry has been supported by two regulations which include section 19 of the Income tax Act and the Investment Canada Act.

Related Business Guidelines (Investment Canada Act)

• section 11 of the Act regulates new or expanding businesses of foreign-controlled investors in the publishing industry in Canada. The Act sets out guidelines and policies, including definitions of an expanding business and an existing business http://investcan.ic.gc.ca/
  
  
• Effective June 1, 2000, section 19 of the Income Tax Act will be amended. The proposed changes to section 19 will not affect the existing system as it applies to newspapers. They do not affect deductions for advertising in Canadian newspapers.
  
  
• However, a technical amendment to section 19 of the Income Tax Act will recognize Canadian pension funds and certain other entities as being Canadian citizens for the purposes of the ownership requirements for newspapers. For newspapers, this technical amendment applies from July 1996.