In December 2006, the Federal Court Trial Division ruled that the CRTC Part II Licence Fees collected from broadcasters and broadcast distributors were an illegal tax. The Crown appealed this decision, however. On April 28, 2008, the Federal Court of Appeal ruled that these fees are valid regulatory charges.
The Canadian Association of Broadcasters (CAB) notes that "the Part II Licence Fees are over and above payments made to the CRTC to defray the cost of the regulation and supervision of the industry. The fees exceed $100 million dollars annually. These funds go directly to the government's Consolidated Revenue Fund." Glenn O'Farrell, president and CEO of the CAB, explains that " 'CAB members are disappointed with the outcome of the appeal. Based on members' stated intentions, there is no doubt the CAB will seek leave to appeal this decision to the Supreme Court of Canada.' "
The CAB has 60 days from April 28 to serve and file an application for leave to appeal with the Supreme Court. After this, the Crown has 30 days to serve and file its response. The court will then decide whether or not it will hear the appeal.
Sources: Mediacaster, 05/06/2008, Cartt 05/06/2008