FAQ – Contribution Collection Mechanism Forms (60x)

Why are retail Internet access and Paging service revenues contribution-eligible (i.e., can no longer be deducted)?

In Modern telecommunications services – The path forward for Canada’s digital economy, Telecom Regulatory Policy CRTC 2016-496, 21 December 2016, the Commission determined that, when the Broadband Fund was established, the definition of contribution-eligible revenue for the contribution regime would be updated to include retail Internet access and Paging service revenues.  With the introduction of the Broadband Fund in January 2020, the updated definition of contribution-eligible revenue was implemented for the contribution regime.

What is the definition of “related parties”?

The definition of a related party can be found in International Accounting Standard 24 of the Chartered Professional Accountants of Canada Handbook – Accounting.

How do I identify related parties?

A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to as the 'reporting entity').

1. A person or a close member of that person's family is related to a reporting entity if that person:
   1. has control or joint control over the reporting entity;
   2. has significant influence over the reporting entity; or
   3. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
2. An entity is related to a reporting entity if any of the following conditions applies:
   1. The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
   2. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
   3. Both entities are joint ventures of the same third party.
   4. One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
   5. The entity is a post-employment defined benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
   6. The entity is controlled or jointly controlled by a person identified in (a).
   7. A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
   8. The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

Date modified:

2020-12-04