The industry believes that an omnibus income tax bill before the Senate of Canada, known as Bill C-10, contains a provision that could dramatically affect the financial viability of film and television production in Canada, and the ability of Canadian productions to compete with Hollywood.

According to the Canadian Film and Television Production Association (CFTPA), Bill C-10 (An Act to amend the Income Tax Act) includes language that permits the Minister of Canadian Heritage to establish as yet undefined post-production guidelines that determine if a film is "contrary to public policy", thereby potentially denying federal tax credits that are vital to the financing of productions.

"Producers are shocked by what they perceive to be a political agenda masquerading as public policy. If we must seek consensus on 'taste', nothing will get made. There are already layers of safeguards in place to protect the public and producers in Canada already abide by strict guidelines and acceptable content boundaries throughout the funding process," commented Sandra Cunningham, Chair of the CFTPA.

The Association pointed out that Canadian film and television productions are financed in many cases through bank loans, which are contingent on federal tax credits that are only granted once a production is complete.

By increasing the subjectivity of production eligibility, the entire financial viability of many projects are at risk, the CFTPA argues.

Responding to the industry's claims, Josee Verner, Minister of Canadian Heritage, contends that "nothing could be further from the truth."

"Under the current rules, the creator of a film that includes content that may be subject to prosecution under the Criminal Code could technically still be eligible for a film tax credit under the Income Tax Act. This is a legal absurdity; a loophole that successive governments-first Liberal, then Conservative-have worked to close. This is a matter of good housekeeping, consistent with previous policy and what is done in other cultural sectors," Verner explained in a statement.

"Bill C-10 has nothing to do with censorship and everything to do with the integrity of the tax system. The goal is to ensure public trust in how tax dollars are spent. The modifications in question will affect a very small number of the over 1000 productions that receive tax credits annually," Verner stated, adding that: "The movies we go to see at theatres and film festivals will continue to be eligible for tax credits."