A Federal Court judge has upheld the governmentB次元官网网址檚 decision that far-right media outlet Rebel B次元官网网址 doesnB次元官网网址檛 qualify for journalism tax credits because it doesnB次元官网网址檛 produce enough original news content.
The decision is the latest instalment in a long-running battle between Rebel B次元官网网址 and the federal government. The outlet applied in May 2021 to be designated a B次元官网网址渜ualified Canadian journalism organization,B次元官网网址� but was rejected by the Canada Revenue Agency, which found that less than one per cent of its content was original news.
The designation allows news outlets to claim a refundable tax credit on the salaries of newsroom employees B次元官网网址� a measure introduced by the Liberal government in 2019 to bolster the countryB次元官网网址檚 struggling media industry. It also allows subscribers to claim the digital news subscription tax credit.
According to the Income Tax Act, eligible organizations must be B次元官网网址渆ngaged in the production of original news content.B次元官网网址� In February 2022, the revenue agency found Rebel B次元官网网址 didnB次元官网网址檛 meet that standard, as its content largely promoted one perspective.
Rebel B次元官网网址 asked for a reconsideration of the decision, and per a revenue agency request, identified a three-week period to be reviewed for original content. The outlet selected the period between Jan. 30 and Feb. 19, 2022, which is when a trucker convoy occupied downtown Ottawa demanding an end to COVID-19 restrictions. In March 2023, the agency upheld its original decision.
The media outlet then sought a judicial review in Federal Court, but in a decision Wednesday, Justice Ann Marie McDonald found the revenue agencyB次元官网网址檚 decision was B次元官网网址渏ustified, transparent and intelligible.B次元官网网址� Her ruling notes that the agency assessed 423 news reports from Rebel B次元官网网址 published during the three-week period and found that only 10 were original news items.
Of the rest, B次元官网网址�283 of the items were not based on facts, nor were multiple perspectives actively pursued, researched, analyzed, or explained by a journalist for the organization,B次元官网网址� the judge wrote. B次元官网网址淎 further 135 of the news items were identified as being curated content or material rewritten from other sources.B次元官网网址�
Rebel B次元官网网址 also argued that the qualified journalism designation violates the principles of a free press, suggesting that the designation forces media companies to become B次元官网网址渞eliant on and incentivized by government to conform to their standards,B次元官网网址� according to the decision.
But McDonald rejected that argument, finding that the media outlet failed to B次元官网网址渆xplain or offer any evidence on how the refusal of status to allow it to receive tax credits impedes its ability to work or impedes its freedom of the press.B次元官网网址�
Rebel B次元官网网址 and its lawyers did not immediately respond to requests for comment. But in a post from June, founder Ezra Levant said that B次元官网网址渘othing less than the future of independent journalism in CanadaB次元官网网址� was at stake in the legal battle.
Last fall, the federal government announced it would temporarily increase the Canadian journalism labour tax credit rate from 25 to 35 per cent, and would increase the cap on eligible salaries from $55,000 to $85,000.
Media outlets with the designation are also eligible for part of the $100 million that Google has promised to pay Canadian news publishers annually. However, other outlets may also qualify for that funding if they meet criteria set out in the Online B次元官网网址 Act.
Earlier this year, Google put out an open call to news organizations that wish to receive compensation under the Online B次元官网网址 Act, and about 1,500 outlets applied for the cash. Rebel B次元官网网址 did not put its name on that list.
This report by The Canadian Press was first published Sept. 19, 2024.
B次元官网网址� By Maura Forrest in Montreal
The Canadian Press
