New Canadian Budget Enhances Canadian Production Services Tax Credit Program but Reduces Canadian Television Fund
On February 18, 2003, the Canadian Finance Minister, John Manley, tabled the federal budget (the “Budget”) in the Canadian House of Commons announcing, among other things, changes to the Film or Video Production Services Tax Credit (the “Services Credit”) and the Canadian Television Fund (“CTF”). Among those of our clients who benefit from the Services Credit, the Budget will give cause to celebrate. For those of our clients, however, who rely on CTF financing for domestic production, the Budget will give cause for concern. For ease of reference, the proposed tax changes are briefly summarized.