OBPTC Frequently Asked Questions
*The February 2017 version of the FAQs has been updated to advise of the new tax credit administration fee structure, effective April 1, 2017. Numbering may have changed
As of February 2017
1. How much of the literary work must be new material to be eligible for the OBPTC?
At least 90 per cent of the literary work must be new material that has not been previously published (in book form).
2. Can more than one version of a literary work be eligible for the OBPTC?
More than one version of a literary work (i.e. hardcover and / or paperback, as well as its digital version) may be eligible for the OBPTC, so long as the eligible versions were published simultaneously (and meet all the other eligibility criteria).
3. Is a translation considered as an eligible literary work for the OBPTC?
A translation of a previously published literary work is not an eligible publication for the OBPTC.
4. What is considered as “government assistance” for the OBPTC (and would therefore grind the tax credit)?
Government assistance means assistance from a government, municipality, or other public authority in any form, including a grant, subsidy, forgivable loan, and deduction from tax and investment allowance, but does not include a tax credit, or a grant that is not specific to a particular eligible literary work. For example, amounts received from the Department of Canadian Heritage’s Canada Book Fund, as well as Block Grants from the Canada Council for the Arts and the Ontario Arts Council, would not be considered government assistance, as none of these are title-specific.
5. Will Canada Revenue Agency (CRA) process incomplete corporate tax return filings?
The CRA will not process a claim until it is ‘complete’. A claim is considered ‘complete’ when all of the following documentation are filed with the CRA: a T2 Corporation Income Tax return; a completed Schedule 564 (T2SCH564) for each literary work; and an OMDC certificate of eligibility (or copy) for each literary work. A copy of the certificate of eligibility and a completed T2SCH564 must be included with the T2 Corporation Income Tax return for each year a claim is made in respect of each literary work.
6. What is the new tax credit administration fee structure?
Effective April 1, 2017 there is a new administration fee structure for tax credits which will offset the cost of administering the program. The OBPTC administration fee will continue to be calculated as 0.15% of eligible expenditures for the application. The minimum fee of $50 per application and maximum fee of $200 per application will remain the same; however, the corporate maximum per taxation year has been removed.
As previously announced, effective January 1, 2017 there is an additional filing fee of $100 applied to applications for Certificates of Eligibility received more than 24 months after the first year-end of the claim. As well, there is a fee of $100 for each Amended Certificate requested.
7. I submitted my application before April 1, 2017, so will I be subject to the new tax credit administration fee structure?
The new tax fee structure will be applied to tax credit applications received on or after April 1, 2017.
The additional filing fee and fee for Amended Certificates are separate from the new fee structure. These fees will be applied to older tax credit applications received on or after January 1, 2017 and requests for Amended Certificates received on or after January 1, 2017
8. Who should I contact in the Tax Credits Department with other questions?
If you have further questions, please contact the phone duty line by email email@example.com or call us at 416 642-6659. Please leave a detailed message including your name, company, phone number and the tax credit or file about which you are inquiring. There is a different person on phone duty every day, and he/she will respond to your email or call within one business day.