Bill C-10 Regarding the Canadian Film or Video Production Tax Credit

March 25, 2008

Bill C-10, An Act to Amend the Income Tax Act is currently at the Senate Banking, Trade and Commerce Committee. This bill contains an amendment to the Income Tax Act that would allow the Government to deny tax credits to film productions, the financing of which would be contrary to public policy.

Under the current rules, the creator of a film that includes content that may be subject to prosecution under the Criminal Code could technically still be eligible for a film tax credit under the Income Tax Act. Bill C-10 is a matter of good housekeeping, consistent with previous policy and what is done in other cultural sectors.

For Canadian content reasons films produced in Canada are given tax credits. If a film production contains content which is excessively violent or degrading to identifiable groups, the films are not eligible for tax credits under this amendment. This is not a new Bill. It was first announced in 2002 by the former Liberal Finance Minister and again in 2003 by the former Liberal Heritage Minister. The current government has introduced precisely the same amendment.

Bill C-10 has nothing to do with censorship or the state attacking freedom of expression. It has everything to do with the integrity of the tax system. The Bill does discern, for tax credit purposes, what should be supported from the public purse.

This Bill means that your tax dollars or tax credits would not apply. The public has a choice whether to watch this type of material or not. The public will be responsible for that task by switching off their television sets.

Ms. Libby Davies (Vancouver East, NDP) said in the House on February 29th:

“New Democrats are deeply concerned by reports that the Conservatives are planning to censor film and video production in Canada to suit their friends from the religious right. Will the Minister of Canadian Heritage, Status of Women and Official Languages confirm that her office is working on “updated eligibility requirements and the standardized and updated list of illegal and other ineligible content”? Could the Minister assure the House and Canada’s cultural community that her department will not place new barriers to accessing film credits in Canada? Will she give that assurance today?”

Hon. Jim Abbott (Parliamentary Secretary for Canadian Heritage, CPC) replied:

“Mr. Speaker, it is regrettable that the NDP member is trying to make something out of nothing. The fact is the tax measure is nothing new. The fact is that party, along with every party in the House, passed the bill. She should have known what was in the bill in the first place.

I should note that it originally came to the House in 2003, under the Liberals at that point. There is nothing new. What is the story here? I do not understand.”



Colin Mayes MP Okanagan-Shuswap