CAVCO Public Notice 2024-01 – Call for Comments

Gatineau, January 12, 2024

Conversion of CAVCO’s Service Standard from Business to Calendar Days

Purpose

  1. The purpose of this public notice is to:
    • Seek written comments on a proposal to convert CAVCO’s service standard for processing applications to the Canadian Film or Video Production Tax Credit (CPTC) and the Film or Video Production Services Tax Credit (PSTC) programs from business days to calendar days.
    • Notify clients and stakeholders that CAVCO will be undertaking a comprehensive review of its service standards to ensure compliance with the Service Fees Act and other Government of Canada directives and policies.

Proposed change to service standard

  1. CAVCO is proposing to convert its service standard for the processing of CPTC and PSTC applications from 120 business days to 176 calendar days, which are approximately the same periods of time. The performance target to process 85 percent of applications within the service standard would remain. CAVCO would begin using and reporting on the calendar day service standard on April 1, 2024.

Notice of comprehensive review

  1. Modifying CAVCO’s service standard from 120 business days to 176 calendar days would be a minor change and intended as an interim and transitional measure while CAVCO conducts a comprehensive review of its service standards. The comprehensive review will include further consultation as well as consideration of:
    1. how service standards could better reflect the service provided by CAVCO;
    2. compliance with the Service Fees Act, which was amended on June 22, 2023, as well as other Government of Canada directives and policies. This would include developing a policy for remitting a portion of a fee if CAVCO considers that the associated service standard has not been met.

Background

  1. The current service standard for processing applications to the CPTC and PSTC programs is 120 business daysFootnote 1. The service standard starts being counted when an application is deemed complete and ready to be assigned to a tax credit officer for analysis, that is, the day it passes from the “registration intake” step and is placed “in queue.” The last day counted is when the production is certified by the Director General of the Audiovisual Branch, on behalf of the Minister of Canadian Heritage; this is the final day of an application being “under review.” See figure 1 for further clarification of which steps in the review of applications at CAVCO are counted toward the service standard.
Figure 1: How the service standard is counted for applications to the CPTC and PSTC programs
Step Stages for review of applications at CAVCO Service standard
1 An application is submitted online. Does not count toward the service standard.
2 “In progress – fees pending” or “Registration intake” are the file status messages that an applicant will see in the online system. During this stage, the application is being reviewed for completeness by a junior program officer.Footnote 2 Does not count toward the service standard.
3 The “In queue” message that the applicant will see in the online application system means that a complete application is placed in queue, ready for assignment to a tax credit officer. This step marks the first day counted toward the service standard. All business days in this step are counted.
4

The “Under review” message in the online application system indicates that the application is in the final stages of the review process, which includes the following steps:

  • the application is reviewed by a tax credit officerFootnote 3 who might submit the application to CAVCO’s Compliance Committee for an eligibility review, if applicable
  • the application is reviewed by the Director of CAVCO
  • the application is reviewed by the Director General of the Audiovisual Branch (DG is the delegate of the minister)
All business days in this step are counted, including when waiting for an applicant to respond to questions. The last day counted is the day the DG approves the application.
5 A certificate is issued. Any delay waiting for payment to CAVCO after the DG has approved the application is not counted in the service standard.
  1. A service standard set in calendar days would make it easier for applicants to understand, visualize and calculate when they may expect their production to be certified. Other organizations administering film or television production tax credits set their service standards in calendar days.
  2. When accounting for weekends and holidays, the 120-business day service standard would, on average, be equivalent to 176 calendar days.

Call for Comments

  1. CAVCO requests written comments on this proposal. All comments must be received by CAVCO by February 9, 2024. Submissions must include the name of the person or organization providing comments. Paragraphs should be numbered. All comments received will be given due consideration.
  2. Please submit your comments by email to bcpac-cavco@pch.gc.ca to the attention of the Director, CAVCO.
  3. Any questions about this public notice can be sent to CAVCO by email at bcpac-cavco@pch.gc.ca or you may call toll-free at 1-888-433-2200.

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