ET/SL 29

December 20, 1995

The Excise Tax Act was amended, by Bill C-103 which received Royal Assent on December 15, 1995, to impose an excise tax in respect of split-run editions of periodicals.

A split-run edition of a magazine is an edition that is distributed in Canada in which more than 20% of the editorial material is the same or substantially the same as editorial material that appears in one or more periodical editions that are distributed primarily outside Canada that contains an advertisement that does not appear in identical form in those other periodical editions.

The tax is imposed at a rate equal to 80% of the total value of all advertisements appearing in the split-run edition of the periodical. A magazine has the same number of "split-run" editions per year exempted from the tax that it published in Canada in the 12 month period ending on March 26, 1993. The "responsible person" for payment of the tax could be the publisher, a person connected with the publisher, the distributor, the printer, or the wholesaler.

If you are producing a split-run and are not exempt from the tax contact 1-800-461-3567 to obtain a return. If you are unsure whether you are producing a split-run or could be liable for tax as a responsible person, and you need an interpretation or ruling, please contact your local Revenue Canada Tax Services office.