Broadcasting - Commission letter addressed to Nadarajah Kumarakulasingam (8041393 Canada Inc.)

Ottawa, 12 July 2022


Nadarajah Kumarakulasingam
8041393 Canada Inc.
Suite 201 – 720 Tapscott Road
Scarborough (ON) M1X 1C6

Re: Audit of 8041393 Canada Inc.’s Canadian content development contributions


As part of its processes to audit Canadian content development (CCD) contributions and tangible benefits payments made by radio stations, the Commission discovered that 8041393 Canada Inc. (o/a CJRK EAST-FM) may not have made its required contributions and payments as follows.

In Broadcasting Decision 2014-574, the Commission imposed on CJRK-FM, owned and operated by 8041393 Canada Inc. (o/a CJRK EAST-FM), the following condition of licence:

In addition to any required basic annual contribution to Canadian content development (CCD), set out in section 15 of the Radio Regulations, 1986, as amended from time to time, the licensee shall, upon commencement of operations, make a contribution of $120,000 over seven consecutive broadcast years to the promotion and development of Canadian content, to be allotted each year as follows:

Of this amount, the licensee shall allocate no less than $500 per broadcast year, beginning in the second year of operations, to FACTOR. The remaining amounts of this additional CCD contribution shall be allocated to parties and initiatives fulfilling the definition of eligible initiatives set out in paragraph 108 of Commercial Radio Policy 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006.

According to Commission records, CJRK-FM began operating on 1 September 2016. Based on the aforementioned condition of licence, therefore, CJRK-FM would have been required to make over-and-above CCD contributions of $3,000 in the 2016-2017 broadcast year, $5,500 in the 2017-2018 broadcast year and $17,500 in the 2018-2019 broadcast year, for a total of $26,000.

In its annual returns, the licensee reported making CCD contributions totalling $5,000 over the three year period (2016-2017 to 2018-2019) instead of the required $26,000 resulting in a shortfall of $21,000.

In addition, there were questions regarding as to the eligibility of discretionary CCD contributions directed to the Seneca College Fund.

In a request for information, the licensee was asked to address the above noted issues.

CJRK EAST-FM’s response

In responses dated 8 November 2021 and 3 January 2022, CJRK EAST-FM admitted to only paying $5,000 in over-and-above CCD contributions and to the cumulative shortfall of $21,000. CJRK EAST-FM proposed to immediately make a payment in this amount to FACTOR.

CJRK FM-EAST also provided evidence that its contributions to the Seneca College Fund provided scholarships to students participating in the Music Industry Arts and Performance and Performance Arts Fundamentals programs.

Commission Analysis and Determinations

In its response, the licensee explained that the contributions to the Seneca College Fund would be to fund scholarships awarded to a Canadian student pursuing a diploma or degree in music and would be consistent with the types of content that are elligible discretionary initiative for CCD purposes as set out on the Commission’s Canadian Content Development Contributions and Eligible Initiatives web page. Based on the evidence provided, the Commission accepts that the Seneca College Fund contributions are appropriate.

Regarding the CCD contribution shortfall, the Commission notes that CJRK EAST-FM admitted to not having made all its required CCD contributions for the broadcast years in question. While it appreciates the licensee’s candour, the Commission finds CJRK EAST-FM in non-compliance with the above noted condition of licence for the 2016-2017 to 2018-2019 broadcast years.

As to CJRK EAST-FM’s proposal to make-up the resulting shortfall by making a payment of $21,000 to FACTOR, the Commission notes that this is an eligible option for CCD contributions and is therefore acceptable.

Based on the above, the Commission directs CJRK EAST-FM to pay $21,000 to FACTOR within 30 days of the date of this decision and to provide proof of this payment to the Commission within 60 days of the date of the decision.

The Commission also reminds the licensee of its obligations to fulfill the conditions of its licence for the remainder of the licence term.

Yours sincerely,

Original signed by

Claude Doucet
Secretary General

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