Income Tax Regulations — 1104
enced before the end of the particular taxation year or was completed no later than 60 days after the end of that year and certified by him to be (a) a film or tape the production of which is contemplated in a coproduction agreement entered into between Canada and another country, or (b) a film or tape in respect of which (i) the individual who performed the duties of producer was a Canadian, (ii) the Minister of Communications has allotted not less than an aggregate of six units of production, not less than two of which were allotted by virtue of clause (A) or (B) and not less than one of which was allotted by virtue of clause (C) or (D), for individuals who provided services in respect of the film or tape, in the following manner: (A) for the director, two units of production, (B) for the screenwriter, two units of production, (C) for the actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production, (D) for the actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production, (E) for the art director, one unit of production, (F) for the director of photography, one unit of production, (G) for the music composer, one unit of production, and (H) for the picture editor, one unit of production, shall be allotted, provided the individual in respect of such allotment was a Canadian, (iii) not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) paid or payable to persons for services provided in respect of producing the film or tape (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii), costs referred to in subparagraph (iv) incurred for processing and final preparation of the film or tape, and amounts paid or payable in respect of insurance, financing, brokerage, legal and accounting fees and similar amounts) was paid or payable to, or in respect of services provided by, Canadians, and (iv) not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) incurred for processing and final preparation of the film or tape, including laboratory work, sound re-recording, sound editing and picture editing (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii)) was incurred in respect of services provided in Canada, other than a film or tape (c) acquired after the day that is the earlier of (i) the day of its first commercial use, and (ii) 12 months after the day the principal photography or taping thereof is completed, (d) acquired by a taxpayer who has not paid in cash, as of the end of the particular taxation year, to the person from whom he acquired the film or tape, at least 5 per cent of the capital cost to the taxpayer of the film or tape as of the end of the year, (e) acquired by a taxpayer who has issued in payment or part payment thereof, a bond, debenture, bill, note, mortgage or similar obligation in respect of which an amount is not due until a time that is more than four years after the end of the taxation year in which the taxpayer acquired the film or tape, (f) acquired from a non-resident, or (g) in respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b), and, for the purposes of the application of this definition, (h) in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (i) applies, the reference in this definition to