Senate says Feds need to study loophole of tax deductibility of foreign web advertising

By Denis Carmel

OTTAWA - The Senate Standing Committee on Transport and Communications has released its report on the deductibility of foreign internet advertising.Aptly named The Tax Deductibility of Foreign Internet Advertising in Canada, the report comes on the heels of hearings held in May and June where the Senate Committee heard from 13 individuals or groups. The issue was brought to light by a study undertaken by Friends of Canadian Broadcasting called Closing the Loophole which proposes that the definition of ‘broadcasting’ be amended to ensure non-Canadian online companies cannot benefit from this corporate tax incentive which was intended to help Canadian media. The report ponders...