Expert body calls for expanded rules to fix news-outlet tax credit

OTTAWA — The federal government should increase the scope of tax credits being made available to help small newsmedia outlets survive, an independent panel of experts recommended in a report issued Thursday.

The tax credit program being offered by the federal Liberals will not be enough on its own to prevent the disappearance of some news outlet, the panel said in a letter to Heritage Minister Pablo Rodriguez and Finance Minister Bill Morneau.

Especially vulnerable are “small local news media outlets that are not covered by the Budget 2019 measures,” the letter stated.

“Other support programs should be considered.”

Small publications should be allowed to count freelancers and independent contractors among their journalists in order to qualify as Canadian journalism organizations under the tax credit program, the report recommended.

The program first outlined in the fall 2018 economic statement included refundable tax credits for qualifying journalism organizations, a non-refundable tax credit for subscriptions to Canadian digital news, and charitable status for not-forprofit journalism organizations.

Under the initial criteria, a news outlet would have to regularly employ two or more journalists to be eligible for the credits, and primarily provide original news content to a general audience.

To further aid smaller journalistic entities, and to better serve minority-language communities, the panel urged the government to “immediately dedicate” a minimum of five per cent of the federal advertising budget toward written publications in those communities.

On a larger scale, the government should “commit to buying substantial advertising” in print and digital publications, the report concluded.