A Federal Court judge has upheld the government含羞草研究社檚 decision that far-right media outlet Rebel News doesn含羞草研究社檛 qualify for journalism tax credits because it doesn含羞草研究社檛 produce enough original news content.
The decision is the latest instalment in a long-running battle between Rebel News and the federal government. The outlet applied in May 2021 to be designated a 含羞草研究社渜ualified Canadian journalism organization,含羞草研究社� but was rejected by the Canada Revenue Agency, which found that less than one per cent of its content was original news.
The designation allows news outlets to claim a refundable tax credit on the salaries of newsroom employees 含羞草研究社� a measure introduced by the Liberal government in 2019 to bolster the country含羞草研究社檚 struggling media industry. It also allows subscribers to claim the digital news subscription tax credit.
According to the Income Tax Act, eligible organizations must be 含羞草研究社渆ngaged in the production of original news content.含羞草研究社� In February 2022, the revenue agency found Rebel News didn含羞草研究社檛 meet that standard, as its content largely promoted one perspective.
Rebel News asked for a reconsideration of the decision, and per a revenue agency request, identified a three-week period to be reviewed for original content. The outlet selected the period between Jan. 30 and Feb. 19, 2022, which is when a trucker convoy occupied downtown Ottawa demanding an end to COVID-19 restrictions. In March 2023, the agency upheld its original decision.
The media outlet then sought a judicial review in Federal Court, but in a decision Wednesday, Justice Ann Marie McDonald found the revenue agency含羞草研究社檚 decision was 含羞草研究社渏ustified, transparent and intelligible.含羞草研究社� Her ruling notes that the agency assessed 423 news reports from Rebel News published during the three-week period and found that only 10 were original news items.
Of the rest, 含羞草研究社�283 of the items were not based on facts, nor were multiple perspectives actively pursued, researched, analyzed, or explained by a journalist for the organization,含羞草研究社� the judge wrote. 含羞草研究社淎 further 135 of the news items were identified as being curated content or material rewritten from other sources.含羞草研究社�
Rebel News also argued that the qualified journalism designation violates the principles of a free press, suggesting that the designation forces media companies to become 含羞草研究社渞eliant on and incentivized by government to conform to their standards,含羞草研究社� according to the decision.
But McDonald rejected that argument, finding that the media outlet failed to 含羞草研究社渆xplain or offer any evidence on how the refusal of status to allow it to receive tax credits impedes its ability to work or impedes its freedom of the press.含羞草研究社�
Rebel News and its lawyers did not immediately respond to requests for comment. But in a post from June, founder Ezra Levant said that 含羞草研究社渘othing less than the future of independent journalism in Canada含羞草研究社� was at stake in the legal battle.
Last fall, the federal government announced it would temporarily increase the Canadian journalism labour tax credit rate from 25 to 35 per cent, and would increase the cap on eligible salaries from $55,000 to $85,000.
Media outlets with the designation are also eligible for part of the $100 million that Google has promised to pay Canadian news publishers annually. However, other outlets may also qualify for that funding if they meet criteria set out in the Online News Act.
Earlier this year, Google put out an open call to news organizations that wish to receive compensation under the Online News Act, and about 1,500 outlets applied for the cash. Rebel News did not put its name on that list.
This report by The Canadian Press was first published Sept. 19, 2024.
含羞草研究社� By Maura Forrest in Montreal
The Canadian Press
