CRA Update Regarding Residency Documentation for Film and Media Tax Credits



The Canada Revenue Agency (“CRA”) has published new guidelines regarding the documents it deems acceptable to satisfy proof-of-residency requirements in order for a production to qualify for film and media tax credits. The CRA administers film and media tax credits on behalf of the federal government and the governments of Ontario, Manitoba and British Columbia.
 
Specifically, the Guidelines provide that residency may be established by providing a copy of:
 

  1. One of:

    1. A Notice of Assessment (T1) indicating that the individual is a Resident of Canada/the applicable province for the relevant tax year;

    2. A Letter from the CRA giving an opinion of the individual’s resident status for the relevant years, after the individual has completed a Determination of Residency Status form; or

    3. A long-term (one year or greater) lease or proof of purchase of a Canadian dwelling with a utility bill or cellphone bill showing the individual lives at the applicable Canadian address; or

  2. Three of:

    1. The last tax return filed in the country of origin and/or any document filed with the foreign tax authority in which the individual has declared that they are no longer a resident;

    2. A short-term (less than a year) lease agreement or letter from a landlord supporting a rental agreement;

    3. A provincial health card* and/or services card for the individual, their spouse and/or dependent (*not applicable in Ontario);

    4. A driver’s license or vehicle registration from the relevant province (counts as 2 of the 3);

    5. Document(s) supporting professional association or union membership in Canada; or

    6. Statements of accounts (for example: bank accounts, retirement savings plan, credit cards, securities accounts) from a Canadian branch of a financial institution.

 
A copy of the Guidelines can be found here
 
In Ontario: Ontario residents are individuals who were resident in Ontario for tax purposes at the end of the calendar year prior to commencement of principal photography. More information can be found here.
 
In British Columbia: British Columbia residents are individuals who were resident in British Columbia as of December 31 of the year preceding the fiscal year for which the tax credit is being claimed. More information can be found here.
 
In Manitoba: Manitoba residents are individuals who were resident in Manitoba on December 31 of the year of production or of the year prior to production. More information can be found here.
 
These Guidelines should be reviewed to ensure that the documents being requested and produced are sufficient to establish residency. Documentation required to prove residency in provinces other than Ontario, Manitoba and British Columbia may differ from what is outlined in the Guidelines.

Creative BC is Updating their Online Application Portal

Effective August 6, 2018, Creative BC will only accept tax credit applications transmitted via the new portal.  All clients that have previously submitted an application to Creative BC will be granted access to the new system via e-mail before August 6, 2018.

DO YOU HAVE ANY UN-SUBMITTED APPLICATIONS IN PROGRESS?

If so, they must be transmitted prior to August 6, 2018. If you do not transmit your in-flight applications before August 6, 2018, your application(s) will NOT be available in the new system.

Applications that are not submitted before August 6, 2018 will still be available for viewing in the old system until September 30, 2018 but you will have to manually re-enter the information to the new system in order to transmit your application.

Alberta Film Releases New "Screen-Based Production Grant"

Alberta Film has released a new grant program called the Screen-Based Production Grant to supersede the Alberta Production Grant. 

Any pending applications with Alberta Film that were made prior to October 3, 2017 will be processed under the old Alberta Production Grant guidelines. 

For reference material for the Alberta Production Grant, click here.

The new Screen-Based Production Grant has two streams, the commercial envelope and cultural envelope. Commercial envelope grants have a maximum grant of $3M availble. Cultural envelope grants have a maximum grant amount of $5M, with a potential cap increase up to $7.5M. 

For additional details on the new grant requirements, please click here. 

SODEC Announces Joint Development Initiative with Cineflix

Cineflix Media Inc. and SODEC are introducing a new international development initiative for Quebec content. Under the first phase, $750,000 will be available over the next two years.

The initiative is open to all Quebec producers. The initiative aims to support the adaptation for the international anglophone market of scripted programs and French-language television created by Quebec producers. 

For more information see the SODEC press release below:

SODEC Cineflix press release

English version

Alberta Film to Release New Production Grant Program

On October 25, 2017 Alberta Film will be launching a new grant program. The new Screen-Based Production Grant will replace the Alberta Production Grant, and will introduce new funding criteria, specific application intake windows, and stricter financial controls.

No new applications are being accepted as Alberta transitions to the new grant program. 

Updated guidelines and requirements will be posted on October 25, 2017.

For more details see the link below:

Changes to Alberta Film Grant

Updates to Manitoba Tax Credit Program

The Manitoba Film & Video Production Tax Credit has been extended to December 2019.  Eligible expenditures must be incurred and paid before December 31, 2019.

Please be advised that there will be a new application fee for the Manitoba Film & Video Production Tax Credit for projects where principal photography begins after August 31, 2017.  More details can be found in the following link.

http://mbfilmmusic.ca/en/news/entry/281