Bulletin: Service Fees Act – Impact on CAVCO

Gatineau, February 24, 2020

In 2017, the Government of Canada introduced the Service Fees Act (Act) to replace the User Fees Act. The Act establishes administrative obligations, and requires that program fees increase annually in accordance with the Consumer Price Index (CPI). All fees administered by the Canadian Audio-Visual Certification Office (CAVCO) fall under paragraph 2(1)(e) of the definition of “fee” in the Act, and are considered as fees payable for “the recovery, in whole or in part, of costs that are incurred in relation to a regulatory scheme.”

Impact on CAVCO

Every year on March 31, starting March 31, 2020, some Canadian Film or Video Production Tax Credit (CPTC) and Film or Video Production Service Tax Credit (PSTC) fixed-rate program fees will increase. The amount of the increase will be equal to the percentage change over 12 months in the April All-items Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act, for the previous fiscal year. All applications submitted as of the effective date will be subject to the fee increase. The tables below outline the upcoming fee increases.

Exemptions

CAVCO’s main CPTC application fees are exempt from an annual increase as they are based on a percentage of a production’s Eligible Labour Costs (0.30% for a Part A/B or 0.15% for a Part A and 0.15% for a Part B when they are submitted separately), and as a result, already self-adjust for inflation. However, the CPTC minimum fee ($200) is considered a fixed-rate fee and is subject to the annual CPI increase.

CPTC and PSTC certified copy fees ($100) are exempt from the annual fee increase as they are considered “low materiality.”

For questions relating to the new Service Fees Act or the annual fee increases, please call us at 1-888-433-2200.

Canadian Film or Video Production Tax Credit (CPTC) Fees

Fee Category	Current Fee	Fee as of March 31, 2020 (+2.2%)	Fee as of March 31, 2021 (+2%)
Part A/B	0.30% of Eligible Production Cost	0.30% of Eligible Production Cost	0.30% of Eligible Production Cost
Part A	0.15% of Eligible Production Cost	0.15% of Eligible Production Cost	0.15% of Eligible Production Cost
Part B	0.15% of Eligible Production Cost	0.15% of Eligible Production Cost	0.15% of Eligible Production Cost
Minimum Fee (applies to only Part A/B)	$200	$204.40	$208.49
Amendment to certificate	$300	$306.60	$312.73
Certified copy of certificateFootnote 1	$100	$100	$100

Film or Video Production Services Tax Credit (PSTC) Fees

Fee Category	Current Fee	Fee as of March 31, 2020 (+2.2%)	Fee as of March 31, 2021 (+2%)
Accreditation Certificate	$5,000	$5,110	$5,212.20
Amendment to certificate	$1,000	$1,022	$1,042.44
Certified copy of certificateFootnote 1	$100	$100	$100

Film or Video Production Services Tax Credit (PSTC) Rebate Entitlement^{Footnote 2}

	Initial accreditation application submitted before March 31, 2020		Initial accreditation application submitted from March 31, 2020 to March 30, 2021		Initial accreditation application submitted from March 31, 2021 to March 30, 2022
Aggregate Tax Credit	Final Fee	Rebate	Final Fee	Rebate	Final Fee	Rebate
$25,001 +	$5,000	$0	$5,110	$0	$5,212.20	$0
$20,001 - $25,000	$4,000	$1,000	$4,088	$1,022	$4,169.76	$1,042.44
$15,001 - $20,000	$3,000	$2,000	$3,066	$2,044	$3,127.32	$2,084.88
$10,001 - $15,000	$2,000	$3,000	$2,044	$3,066	$2,084.88	$3,127.32
$0 - $10,000	$1,000	$4,000	$1,022	$4,088	$1,042.44	$4,169.76