Income Tax Act — I-3.3 19
Limitation re advertising expense — newspapers 19 (1) In computing income, no deduction shall be made in respect of an otherwise deductible outlay or expense of a taxpayer for advertising space in an issue of a newspaper for an advertisement directed primarily to a market in Canada unless (a) the issue is a Canadian issue of a Canadian newspaper; or (b) the issue is an issue of a newspaper that would be a Canadian issue of a Canadian newspaper except that (i) its type has been wholly set in the United States or has been partly set in the United States with the remainder having been set in Canada, or (ii) it has been wholly printed in the United States or has been partly printed in the United States with the remainder having been printed in Canada. Where s. (1) does not apply (3) Subsection 19(1) does not apply with respect to an advertisement in a special issue or edition of a newspaper that is edited in whole or in part and printed and published outside Canada if that special issue or edition is devoted to features or news related primarily to Canada and the publishers thereof publish such an issue or edition not more frequently than twice a year. Definitions (5) In this section, Canadian issue of a newspaper means an issue, including a special issue, (a) the type of which, other than the type for advertisements or features, is set in Canada, (b) all of which, exclusive of any comics supplement, is printed in Canada, (c) that is edited in Canada by individuals resident in Canada, and (d) that is published in Canada; ( édition canadienne ) Canadian newspaper means a newspaper the exclusive right to produce and publish issues of which is held by one or more of the following: (a) a Canadian citizen, (b) a partnership (i) in which interests representing in value at least 3/4 of the total value of the partnership property are beneficially owned by, and (ii) at least 3/4 of each income or loss of which from any source is included in the determination of the income of, corporations described in paragraph (e) or Canadian citizens or any combination thereof, (c) an association or society of which at least 3/4 of the members are Canadian citizens, (d) Her Majesty in right of Canada or a province, or a municipality in Canada, or (e) a corporation (i) that is incorporated under the laws of Canada or a province, (ii) of which the chairperson or other presiding officer and at least 3/4 of the directors or other similar officers are Canadian citizens, and (iii) that, if it is a corporation having share capital, is (A) a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a corporation controlled by citizens or subjects of a country other than Canada, or (B) a corporation of which at least 3/4 of the shares having full voting rights under all circumstances, and shares having a fair market value in total of at least 3/4 of the fair market value of all of the issued shares of the corporation, are beneficially owned by Canadian citizens or by public corporations a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, other than a public corporation controlled by citizens or subjects of a country other than Canada, and, for the purposes of clause (B), where shares of a class of the capital stock of a corporation are owned, or deemed by this definition to be owned, at any time by another corporation (in this definition referred to as the “holding corporation”), other than a public corporation a class or classes of shares of the capital stock of which are listed on a designated stock exchange in Canada, each shareholder of the holding corporation shall be deemed to own at that time that proportion of the number of such shares of that class that (C) the fair market value of the shares of the capital stock of the holding corporation owned at that time by the shareholder is of (D) the fair market value of a