As reported in the Globe and Mail last Friday, a Federal Court judge has found that the CRTC’s Type 2 fees on broadcasters are a tax, set at 1.365% of revenues, and are not a fee. As such, according to the ruling, these fees are beyond the CRTC’s jurisdiction.
The result could be refunds in the order of hundreds of millions of dollars of fees paid over the past 8 years, in excess of the costs of administration.
The refunds will be at the expense of taxpayers and into the pockets of the broadcasters and their shareholders – both of whom, of course, will pay some of that windfall back to the government in income taxes.
Between the courts and cabinet, for both telecom and broadcasting, it has been a rough month for appeals for the CRTC.