Highlights

  • The Canada Revenue Agency plans to revoke the charity status of “Canadian Friends of Cuban Jewry” due to non-compliance.
  • The Canadian International Trade Tribunal found a procurement complaint by Steeple Incorporated partially valid and is inquiring into a complaint by Mercuri Conferencing.
  • The CRTC is considering license renewal/amendment requests for various broadcasters and has issued an order on telecommunications fees.
  • The Department of Health in Canada is seeking public comments on proposed fees for natural health products.
  • The Privy Council Office is promoting a merit-based, diverse appointment process for various government positions.
  • Pacific Life Re Limited seeks to release its Canadian assets, subject to opposition from policyholders or creditors.
  • RBC plans to merge with HSBC Bank Canada, pending the acquisition of shares and approval from the Minister of Finance.
  • The Commercial Radio Reproduction Tariff outlines royalty rates and reporting requirements for Canadian radio stations.
  • The Copyright Board has set tariffs for the use of SOCAN’s music at sports events and in hotel/motel in-room services, detailing payment and reporting obligations.

Recent Decisions and Actions by Canadian Regulatory Agencies

The Canada Revenue Agency has announced its intention to revoke the registration of the charity “Canadian Friends of Cuban Jewry” based in Montréal, Quebec, due to non-compliance with the Income Tax Act. The revocation will become effective upon publication in the Canada Gazette.

The Canadian International Trade Tribunal (CITT) has made a determination on a complaint by Steeple Incorporated regarding a procurement by the Department of National Defence for non-metallic hoses. The Tribunal found the complaint partially valid.

The CITT has also received a complaint from Mercuri Conferencing concerning a procurement by Shared Services Canada for conferencing services. Mercuri alleges that the bid closing date was not reasonably extended upon request. The Tribunal has decided to conduct an inquiry into the complaint.

The Canadian Radio-television and Telecommunications Commission (CRTC) has posted several applications on its website, including license renewal or amendment requests from United Christian Broadcasters Media Canada for CIHX-FM in Saskatoon, Saskatchewan, and Bell Media Inc. for CJOH-DT in Ottawa, Ontario, and CFTO-DT in Toronto, Ontario. Interventions, comments, or replies regarding these applications are due by July 24, 2023.

Lastly, the CRTC has issued an order related to telecommunications fees, but no specific details about the licensee or location were provided. [Source]

Public Consultation Extension for Health Product Fees and Open Applications for Government Roles Reflecting Diversity

The Department of Health in Canada has extended the public comment period for proposed fees for natural health products until August 10, 2023, to allow for more stakeholder engagement and feedback. Comments can be submitted through an online form or the consultation page, where more information on the proposal is available.

The Privy Council Office highlights the government’s commitment to a transparent, merit-based appointment process that reflects Canada’s diversity, including gender parity and representation of Indigenous peoples and minority groups. A healthy, respectful, and harassment-free work environment is emphasized for all appointees.

There are open applications for various Governor in Council positions across different organizations, including directorships, chairperson roles, and member positions in areas such as finance, health, trade, energy, human rights, and more. These positions are listed with their respective organizations and have specific closing dates for applications. [Source]

Pacific Life Re Asset Release and RBC-HSBC Amalgamation Plans

Pacific Life Re Limited is planning to apply for authorization to release its assets maintained in Canada, as per the Insurance Companies Act. Policyholders or creditors opposed to this release must file their opposition by August 3, 2023.

Royal Bank of Canada (RBC), along with HSBC Bank Canada and its associated entities, intends to apply for letters patent of amalgamation to merge into one bank under the RBC name, with the head office in Montréal, Quebec. This is contingent on RBC acquiring all shares of HSBC Bank Canada as per a previous agreement. The amalgamation will proceed only after the acquisition is completed, and the effective date will be determined by the letters patent. If the acquisition does not occur, the amalgamation will not take place. The issuance of letters patent will depend on the standard review process and the discretion of the Minister of Finance. [Source]

Canadian Commercial Radio Royalty Rates and Regulations (2024-2026)

The Commercial Radio Reproduction Tariff (2024-2026) sets the royalty rates that Canadian commercial radio stations must pay for reproducing musical works, sound recordings, and performers’ performances. The tariff differentiates between French-language and other stations, as well as between low-use stations (those broadcasting less than 20% of their total airtime with works from the collective societies’ repertoires) and other stations. Royalty rates are tiered based on a station’s gross income, with different rates for the first $625,000, the next $625,000, and any income beyond that.

Stations are required to pay monthly royalties based on their gross income from the previous month and must report their income, simulcast earnings, and provide sequential lists of all music and sound recordings broadcast. The tariff also allows stations to authorize third parties to reproduce works for delivery to the station.

Records of broadcasts and gross income must be kept for six months and six years, respectively, and are subject to audit by the collective societies. If an audit reveals an understatement of royalties by more than 10%, the station must cover the audit costs.

Information provided by stations is confidential and can only be shared under specific circumstances, such as with collective societies, Re:Sound, the Copyright Board, or as required by law. Adjustments to royalties and interest on late payments are also addressed, with interest calculated at a rate 1% above the Bank of Canada’s Bank Rate.

The tariff provides addresses for notices and specifies that royalties for Connect/SOPROQ are paid to Connect, while other royalties are paid to their respective societies. Notices and payments can be delivered via various methods, including email, fax, and electronic bank transfer.

Lastly, a schedule lists the names and owners of French-language stations subject to the tariff. [Source]

New SOCAN Tariff for Music at Sports Events (2024-2026)

The Copyright Board has set a tariff for the use of SOCAN’s music repertoire at sports events from 2024 to 2026. Event organizers must pay 0.1% of their gross ticket sales, excluding taxes, as royalties for each event. Complimentary tickets are valued at half the price of the lowest paid ticket in the same category. The minimum fee for any event, even those with free admission, is $8. This tariff does not cover music performances at opening and closing ceremonies if an additional admission fee is charged. Organizers must report and pay fees to SOCAN quarterly, and SOCAN has the right to audit their records. Unpaid amounts will accrue interest at a rate of 1% above the Bank Rate, calculated daily but not compounded. All fees are subject to applicable taxes. [Source]

SOCAN Royalty Rates for Hotel and Motel In-Room Services (2018-2024)

The Copyright Board has set the royalties for the use of SOCAN’s repertoire in hotel and motel in-room services from 2018 to 2024. The royalties are as follows: 1.25% of the fees paid by guests for non-adult audiovisual works, 0.3125% for mature audience films, and 5.5% of the revenues from any musical service provided. Royalties are due 60 days after each quarter’s end, accompanied by a detailed report of the content used and the fees paid. This report must include titles of works, fees collected, and for musical services, the UPC and ISRC of recordings used. SOCAN has the right to audit the user’s records to verify payments, and unpaid amounts will accrue interest at a rate of 1% above the Bank Rate. All payments are exclusive of taxes or levies. [Source]

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