TABLE OF CONTENTS

• Part 1 - Overview
  • 1.01 What Is the Ontario Book Publishing Tax Credit (OBPTC)?
  • 1.02 Tax Credit Rate
  • 1.03 What Is An Eligible Ontario Book Publishing Company?
  • 1.04 Book Publishing Company
  • 1.05 Permanent Establishment in Ontario
  • 1.06 Eligible Literary Work
  • 1.07 Eligible Literary Categories
  • 1.08 Ineligible Publications
  • 1.09 Eligible Canadian Author
  • 1.10 Qualifying Expenditures
  • 1.11 Government Assistance
• Part 2 - Administrative Process
  • 2.01 Ontario Creates Issues Certificates of Eligibility
  • 2.02 How to Apply for a Certificate of Eligibility
  • 2.03 Tax Credit Administration Fees
  • 2.04 How Long Does the Process Take?
  • 2.05 Amendment or Revocation of Certificates
  • 2.06 Ontario Creates Contact Information
  • 2.07 Canada Revenue Agency (CRA) Role
  • 2.08 CRA Payment of Corporate Tax Refund
  • 2.09 CRA Contact Information
• Part 3 - Required Documents
  • 3.01 What Documentation is Required?
  • 3.02 How do we submit a copy of the book?
• Part 4 - Links to Relevant Legislation and Regulations
  • 4.01 Ontario Book Publishing Tax Credit Legislation
  • 4.02 Ontario Book Publishing Tax Credit Regulations
  • 4.03 Definition of "Permanent Establishment"

The Ontario Creates Magazine Fund is designed to increase the financial viability and overall business growth of the Ontario magazine media industry.

Funding will be provided to support projects that have clear, objective and measurable results and/or indicate direct and positive impact on the overall long-term business growth of the magazine publisher. Priority results include enhancement of publisher revenues and the creation/retention of jobs in the Ontario publishing industry. Ontario Creates will measure results of the program based on return on investment and jobs created and retained.

The Fund also accepts applications from publishers of digital-only magazines and will provide support for a limited number of digital magazines. Applicant Eligibility requirements are applicable to both print and digital publishers; please read the Eligible Magazine Titles section (pages 3-5) for specific requirements for digital magazines.

Ontario Creates values and supports diversity and gender parity within creative industries. The evaluation criteria for this program includes a bonus score for activities that support and reflect diversity and gender parity in Ontario, and/or applications from Francophone, Indigenous, culturally and otherwise diverse applicants.

Ontario Creates is committed to fostering respectful workplaces in all sectors and companies we support. A respectful workplace is one that values diversity and inclusion, dignity, courteous conduct, fairness, positive communication and professional working relationships. A respectful workplace is free from harassment and discrimination including sexual harassment.

Ontario Creates expects that all funding recipients maintain the principles of a respectful workplace including taking every reasonable step to:

• Cultivate and sustain a respectful, positive, inclusive and supportive work culture
• Provide a safe mechanism for staff to report incidents or allegations of inappropriate behaviour
• Take action to prevent, identify and eliminate workplace harassment and discrimination in a timely manner

An eligibility requirement for this program includes the applicant organization confirming that they have in place both guiding principles and a process for maintaining a respectful workplace. Please download the Applicant Affidavit from the Ontario Creates website or from the application form in the Online Application Portal (OAP), sign, and include with your application as instructed.

Deadlines

The deadline for complete submissions is Thursday, May 28, 2020 at 5:00 pm ET, through the OAP. Applications and documentation received after this deadline will not be considered.

Decisions will be communicated to applicants in August 2020

Eligible Applicants

Independent, Canadian-owned and -controlled, Ontario-based magazine publishers may apply for this program.

In the case of affiliated companies and subsidiaries, only one may apply for funding. Entities for which the same person, or group of persons, holds or controls the majority of shares with full voting rights, or has been shown to have control, will be considered affiliated. Where companies are not affiliated according to the above definition, to be considered non-affiliated a corporation must maintain full control over editorial processes, have editorial autonomy from any other publisher applying for this program, and must produce separate financial statements.

To be eligible to apply, the corporation must:

• be a magazine publisher, publishing at the time of application;
• derive more than 50% of the Company’s revenue from magazine revenues and related brand extension of the core magazine business (i.e., events, trade shows, website, television properties);
• be Ontario-based, with its central place of business located in Ontario and pay Ontario corporate taxes;
• be at least 75% Canadian-owned and -controlled;
• be incorporated in a Canadian jurisdiction at the time of application submission;
• be in good standing with Ontario Creates at time of application submission;
• have a minimum sales revenue of $20,000; and
• be financially solvent at the time of application. ,

Financial statements for the past two complete fiscal years including a balance sheet and an income statement must be submitted with your application. Review Engagement and audited financial statements are preferred; however, Notice-to-Reader financial statements will be accepted. Exceptions may be considered for companies with less than two years of operations. Companies in this situation should contact Ontario Creates in advance of the application submission deadline.

Where Audited or Review Engagement financial statements are being prepared at the time of application, please contact the Program Consultant or Coordinator prior to application to discuss the submission of the statements at a later date. Please also provide the most recent financial statements with your application.

Eligible Magazine Titles

PRINT magazines must:

• have completed a full 12 month publishing cycle and complete business year by the time of application submission;
• have published at least two editions;
• be published at the time of application, throughout the application process, and until completion of the proposed project;
• present a clearly displayed masthead or equivalent with a named editor;
• be primarily edited, designed, and published in Ontario;
• maintain an editorial function where the editor is named (editorial function is described as the commissioning of editorial material and artwork; directing writers, illustrators and photographers regarding the final form of this material; and laying out, copy editing and proofreading, and otherwise preparing the contents for publication);
• contain an average of at least 75% Canadian editorial content (editorial content is defined as text, photographs, graphics, and/or illustrations which are authored or translated by a Canadian citizen or a permanent resident of Canada. Editorial adapted or condensed by a Canadian citizen or permanent resident will be considered Canadian editorial content for the eligibility purposes of the program);
• use an editorial calendar for the ideation, creation and publishing of content;
• present editorial content from more than one person;
• be a minimum of 28 pages in length on average for regular published issues, regardless of physical size of the pages;
• appear in consecutively numbered or dated issues;
• be published under a common title, in accordance to an established publishing or update calendar;
• be published at regular intervals, no more than once every week (excluding special issues) and no less than twice a year;
• contain an average of at most 70% advertising in all the issues published during the previous 12 months;
• have a clear distinction between advertising and editorial content, with advertising or sponsored content and supplements clearly identified;
• have a publishing revenue stream, e.g., subscription revenues, advertising sales; and
• maintain one of the following types of circulation over the most recent six months:
  • have a circulation size of at least 2,500 copies per issue if applying for an individual project or 1,000 copies for a group project.

DIGITAL magazines must:

have completed a full 12 month publishing cycle and complete business year by the time of application submission;

Have conducted a minimum of two significant content refreshes;

be published at the time of application, throughout the application process, and until completion of the proposed project; ONTARIO CREATES | MAGAZINE FUND GUIDELINES 2020-21 5

present a clearly displayed masthead or contact page that includes, at minimum, the names of the publisher and editor -;

be primarily edited, designed, and published in Ontario;

maintain an editorial function where the editor is named (editorial function is described as the commissioning of editorial material and artwork; directing writers, illustrators and photographers regarding the final form of this material; and laying out, copy editing and proofreading, and otherwise preparing the contents for publication);

maintain the availability of a substantive amount of content (which can include articles, videos, photo essays, infographics etc);

contain an average of at least 75% Canadian editorial content (editorial content is defined as text, photographs, graphics, and/or illustrations which are authored or translated by a Canadian citizen or a permanent resident of Canada. Editorial adapted or condensed by a Canadian citizen or permanent resident will be considered Canadian editorial content for the eligibility purposes of the program);use an editorial calendar for the ideation, creation and publishing of content;

present editorial content from more than one person;

present content in specified, themed categories;

be published under a common title, in accordance to an established publishing or update calendar;

be published at regular intervals, no less than twice a year;

contain an average of at most 70% advertising in all the issues published during the previous 12 months;

have a clear distinction between advertising and editorial content, with advertising or sponsored content and supplements clearly identified;

have a publishing revenue stream, e.g., advertising sales;

if a web-based magazine, have a valid, live URL address specific to the title;

if an app-based magazine, have an application currently available for download; and

maintain circulation at one of the following levels over the most recent 6 month period:

Open-access, web-based service: maintain a minimum of 15,000 unique monthly visitors

Application (app)-based circulation: maintain a minimum of 10,000 active subscribers

Closed-access (subscription, paywall) : maintain a minimum of 2,500 active subscribers Note: Verification of digital circulation may be requested

Publications will not be eligible if:

published for the purpose of promoting the interest of the principal business of the person, company or organization who publishes or at whose direction the magazine is published, where the principal business is other than magazine publishing;

published directly or indirectly by one or more individuals, groups, organizations or corporations providing goods or services, where the principal goal of the publication is to enhance or promote the sales of such goods or services;

the publication contains editorial content that is predominantly reproduced or repeated from current or previous issues of the same publication or of other publications or online sources;

the publication is capable of inciting hatred against an identifiable group, including a section of the public distinguished by colour, race, religion, sex, sexual orientation or ethnic origin;

the dominant characteristic of the publication is the undue exploitation of sex, or of sex and one or more of crime, horror, cruelty, or violence; and/or

contrary to public policy in the opinion of Ontario Creates.