CAVCO Public Notice 2010-01

Amended Policy on Proof of Canadian Citizenship or Permanent Residency for Producers and Key Creative Personnel

This policy of the Canadian Audio-Visual Certification Office (CAVCO) supersedes the policy announced in Public Notice 2009-01 regarding proof of Canadian citizenship or permanent residency for producers and key creative personnel, as required for the Canadian Film or Video Production Tax Credit (CPTC) program.

Background

1. To be eligible to receive a tax credit under the CPTC program, production companies must, among other things, staff "Canadians" as producers and in a minimum number of key creative positions. "Canadian" is defined in subsection 1106(1) of the Income Tax Regulations (Regulations) to include Canadian citizens and permanent residents.
2. In her report tabled to the House of Commons on November 22, 2005 (Chapter 5 - Support to Cultural Industries), the Auditor General of Canada concluded that CAVCO's former practice of having producers and key creative personnel sign a "Declaration of Citizenship or Permanent Residency" form was not rigorous enough to ensure that Canadian content requirements were being met under the CPTC.
3. In response, CAVCO implemented its "Policy on Documentation Demonstrating that Certain Individuals are Canadian" (Public Notice 2009-01). The policy, effective June 1, 2009, made the applicant responsible and accountable for ensuring that the producers and key creative positions identified for Canadian content points were Canadian by retaining a copy of documentation, e.g. valid passport or permanent resident card, sufficient to demonstrate that each individual satisfied the Regulations' definition of Canadian. Documents were subject to audit by CAVCO on a random basis.
4. Because of concerns raised by the industry regarding the security of personal information that was being retained by production companies, CAVCO is amending its citizenship policy.

   The Policy

5. The CPTC applicant (the producer) is no longer required to retain a copy of an individual's Canadian citizenship or permanent residency documentation. Under the amended policy, individual producers and key creative personnel eligible for Canadian content points under the CPTC must send a copy of their proof of Canadian citizenship or permanent residency, e.g. valid passport, birth certificate or permanent resident card, directly to CAVCO using the secure CAVCO Online application system or by mail. Further details on the process are attached in the annex.
6. Each person confirmed by CAVCO as a Canadian citizen or permanent resident will be assigned a unique CAVCO personnel number. Canadian citizens do not need to resubmit proof of citizenship for future productions. Permanent residents will need to resubmit proof of permanent residency status only when their permanent resident card expires.
7. CPTC applicants are responsible to ensure that any Canadian filling a producer-related or key creative role in their production has obtained a CAVCO personnel number. Producers are encouraged to put wording to that effect in their contracts with key personnel.
8. Cases where the Canadian citizenship or permanent residency documentation is not supplied for a particular production will lead to the reduction of a corresponding number of Canadian content points allocated to the production during the certification process and the possible denial or revocation of a certificate if the production does not have the required number of Canadian content points.

   Effective Date

9. This policy is now in effect. However, to allow the industry time to adjust to the amended rules, applications in process at CAVCO and those where individuals have already provided documentation to the producer can abide by the old policy. This amended policy will be mandatory for all applications received by CAVCO after December 31, 2010.Enquiries
10. Any questions respecting this public notice can be made by contacting CAVCO.

Annex

The Process -- Proof of Citizenship or Permanent Residency

1. Individual producers and key creative personnel must send a copy of their proof of Canadian citizenship or permanent residency directly to CAVCO using the CAVCO Online application system or by mail. These individuals may ask the CPTC applicant (the producer) to send this documentation to CAVCO by mail, on their behalf.
2. To access the secure CAVCO Online application system, the individual sending the information must register for an epass account through CAVCO's Web site. An epass is a unique electronic credential that allows the public to communicate securely with online enabled Government of Canada services. To set up an epass account, go to the CAVCO Web site at: https://www.canada.ca/en/canadian-heritage/services/funding/cavco-tax-credits.html, click on "CAVCO Personnel Number" and then follow the instructions. Note that an epass account created for applying to the CPTC or PSTC programs will not be valid for applying for a CAVCO Personnel Number. A new epass account must be created.
3. Once this short process is complete, an individual can scan his/her proof of Canadian citizenship or permanent residency and send it electronically through the CAVCO Online system.
4. Upon receipt, CAVCO will input the name of the individual in its tracking system of key personnel. The individual will be assigned a unique CAVCO personnel number that will be confirmed to him/her through a return email stating that he/she has been registered in CAVCO's database of key personnel. The individual may provide this number to producers applying to the CPTC for productions in which they have a key creative role (subject to paragraph 7 below).
5. We encourage individual producers and key creative personnel to apply online. However, should individuals choose to send a copy of their proof of citizenship or permanent residency by mail, it must be accompanied by a standard declaration for each individual (see CAVCO's form "CAVCO Personnel Number"). This form may be downloaded from CAVCO's Web site. The form and required documentation may be sent by mail to CAVCO at the address above.
6. The following documents will be accepted as proof of Canadian citizenship or permanent residency:
   • For Canadian citizens:
     • Birth certificate from a Canadian province or territory (issued under the applicable Vital Statistics Act)
     • Canadian Certificate of Registration of Birth abroad (issued prior to 1977)
     • Certificate of Canadian Citizenship or Certificate of Naturalization (not commemorative issue)
     • Certificate of Indian Status
     • Registered Indian Record (must be certified)
     • Canadian Passport (valid at the time the person rendered the services to the production)
   • For permanent residents:
     • Valid Permanent Resident Card
7. Canadian citizens do not need to resubmit copies of proofs of citizenship to CAVCO for future productions. However, since permanent residency status may expire over time, permanent residents need to resubmit their proof of permanent residency status to CAVCO when their permanent resident card expires.
8. All information retained by CAVCO is protected and confidential.