Remission of 2020–21 Broadcasting Part II Fees

Summary#

The federal government approved the Remission Order in Respect of Part II Licence Fees Paid or Payable Under the Broadcasting Licence Fee Regulations, 1997 on December 23, 2020. It cancels (remits) the Part II broadcasting licence fees — including interest — for the fiscal year April 1, 2020 to March 31, 2021, for eligible broadcasters, but only if they meet certain conditions (including an attestation by January 31, 2021).

What it does#

• Remits amounts equal to Part II licence fees charged under the Broadcasting Licence Fee Regulations, 1997 (paragraph 3(b)) for the period April 1, 2020 to March 31, 2021, including any interest.
• Requires affected licensees to:
  • attest to the Canadian Radio‑television and Telecommunications Commission (CRTC), by January 31, 2021, that COVID‑19 caused an estimated revenue drop of 25% or more for the broadcasting undertaking;
  • keep the broadcasting service operating for at least two years after the remission is granted;
  • continue to meet their Canadian content exhibition obligations for at least two years after the remission is granted.
• Excludes cable and satellite television distributors from the remission.
• The government estimates it will forgo up to $50 million (including interest) by not collecting these fees for 2020–2021.

Who's affected#

• Most directly: licensees of television stations, radio stations and discretionary television services (subscription TV services) whose revenues exceed the exemption thresholds set in the fee regulations.
• Smaller, local and independently operated broadcasters are the likely primary beneficiaries. Larger broadcasters could also qualify where their individual stations meet the rules.
• Cable and satellite television distributors are explicitly excluded.
• The CRTC will be the administrative contact for receiving attestations and monitoring compliance.

Why it matters#

• This is a one‑time, targeted financial relief measure aimed at helping broadcasters cope with sharp drops in advertising revenue caused by COVID‑19.
• Broadcasters that qualify keep money they would otherwise have paid to the federal government. That can help them stay open, keep staff, and continue providing local news and Canadian cultural content.
• The relief is conditional; if a broadcaster does not meet the attestation or the two‑year conditions, the remission can be voided and the fees (plus interest) may be recovered.
• It reduces government revenue for the year (up to $50 million) but is intended to protect the public service role broadcasters play during the pandemic.