Currently, a Canadian production uses the promise of tax credits as surety for production financing. Under C-10, producers could be denied their tax credit certificate if the Heritage department is not satisfied that “public financial support of the production would not be contrary to public policy.” Zitzerman argues the only way such judgment could be made (once someone figures out what “contrary to public policy” means) is after production is completed and money spent.

C-10 contains other head-scratchers, regardless of one’s moral stance: the lordship only applies to Canadian-content productions. U.S. productions shooting in Canada and tapping other tax credits would be plain. Moreover, a Canadian producer could tap the similar tax credits as a U.S. producer.

Sounds like the Harper government should borrow another page from the Chrétien playbook: how about a Clarity Bill for the Income Tax Act?

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