Section 19

Subsection 19(1) - Limitation re advertising expense — newspapers

Administrative Policy

13 July 2017 Ministerial Correspondence 2017-0697311M4 F - Publicité sur des plateformes Web étrangères

ss. 19, 19.01 and 19.1 do not apply to advertising on foreign websites

Ss. 19, 19.01 and 19.1 do not limit the deductibility of advertising expenses on foreign web platforms, as these sections only apply to advertising expenses made in newspapers, periodicals or through broadcasting.

6 November 1992 T.I. 922058 (C.T.O. "Various Interpretations of Section 19)

"Whether or not an advertisement is 'directed primarily to a market in Canada' ... is a question of fact. To determine this, one must consider both the probable target market, as determined by the clients, customers or patrons that the advertiser could reasonably expect to attract, and the potential public audience."


O'Callaghan, Tassé, "A Question of Balance: Report of the Task Force on the Canadian Magazine Industry", 1994.

Subsection 19(5) - Definitions

Canadian newspaper or periodical

See Also

E.W. Bickle Ltd. v. MNR, 79 DTC 5170, [1979] CTC 228 (FCA)

There was room for a conclusion that various publications were "newspapers" even though they consisted exclusively, or almost exclusively, of advertisements: they were not merely advertising circulars in the sense of advertising by the persons distributing them and, on the contrary, contained information (news) as to what was available in particular fields of commerce even though such information was conveyed by way of advertising by third parties who had things to sell. Accordingly, a section 28 application for review of an adverse decision by the Minister that the publications did not qualify for exemption under the Excise Tax Act as "newspapers" was allowed, with the matter being referred back for reconsideration by the Minister.

Words and Phrases

Arnerich v. The King, [1942] N.Z.L.R. 380 (C.A.)

In finding that a resident friendly alien was a subject of His Majesty for purposes of the Crown Suits Act, 1908 (New Zealand), Callan J. stated (pp. 389-390):

"In forming an opinion upon the question raised by this motion and the argument addressed to us, I put aside judicial statements that a resident alien ami is in the same position as a British subject, and rely only upon judicial statements that he is a subject. Sometimes the matter is put in the one way, and sometimes in the other ... In my view, any one who, for the time being, owes allegiance to the Sovereign and enjoys his protection, is fairly described as a subject of the Sovereign, so long as the duty of allegiance and the right to protect exists."

Words and Phrases

Administrative Policy

6 November 1992 T.I. 922058 (C.T.O. "Various interpretations of section 19; September 1993 Access Letter, p. 408, ¶C9-287)

A periodical is a publication, other than a newspaper, the issues of which appear at regular intervals of less than a year; and a newspaper is a paper printed and distributed at stated intervals to convey news and other matters of public interest.

Words and Phrases
newspaper periodical

Subsection 19(6) - Trust property

Administrative Policy

10 November 1999 External T.I. 9902305 - NEWSPAPERS AND PERIODICALS

Although s. 19(6) does not apply where a trust is a partner in a partnership that holds rights to produce and publish a newspaper, the same approach will be applied in that situation, i.e., a look-through to the beneficiaries of the trust.

Subsection 19(8) - Non-Canadian newspaper

Administrative Policy

30 October 1997 External T.I. 9727605 - CANADIAN NEWSPAPER OR PERIODICAL

S.19(8) will not apply where a publication qualifies as a Canadian newspaper or periodical and the corporation holding the right to publish is owned by a corporation not described in paragraphs (a) to (e) of the definition of Canadian newspaper or periodical, but all of the control is held and exercised, by a Canadian citizen (or a controlling group of Canadian citizens).