It’s tax time, which means some of our paying members are wondering about whether they can claim the new digital news subscription tax credit for their Taproot membership.
The answer is no, as we are not deemed to be a qualified Canadian journalism organization (QCJO), notwithstanding our dedication to local journalism. When the tax measures were first introduced, we were too small to apply. We may still be too small, though we have grown since then (it depends on who you count). Also, some of our B2B clients are crown corporations, municipal corporations, or government agencies, which also appears to be disqualifying, even though that’s separate from the journalism side of the business.
In any case, we had qualms about the idea of designating some media outlets as QCJOs, because it risks attaching an air of illegitimacy to those who don’t qualify for reasons that have nothing to do with the quality of journalism they produce. The program is really set up to prop up newspaper companies, even though they continue to cut jobs and close newspapers while paying millions to their executives. Erin Millar notes that the program did improve somewhat from what was originally proposed, but it still leaves much to be desired.
That said, we will look into whether we can get QCJO status, for the sake of our members who would appreciate that write-off.