Doing Business in Canada (11th edition)

in which the transmissions are intended for direct reception by the general public and any radio, television and cable television broadcasting undertakings as well as any satellite programming and broadcast network services. Note in this regard that there is no de minimis exception to the determination whether a business is a cultural business. A business will be considered a cultural business even if its cultural activities represent only a small part of its overall operations. Moreover, the Minister of Canadian Heritage may decide to review the acquisition of control of a Canadian cultural business even if the acquisition does not trigger any of the relevant thresholds. APPLICABLE NET BENEFIT REVIEW THRESHOLDS Summarized briefly, a non-Canadian’s acquisition of control of a Canadian business that exceeds the thresholds stated below will be subject to net benefit review under the ICA. Starting on January 1, 2021, and for subsequent years, the thresholds for investments by and from trade agreement investors, WTO investors and state-owned WTO investors will be adjusted annually on the basis of GDP growth. Foreign Direct Investment

Monetary Thresholds for New Benefit Review, 2023

Trade Agreement Investor (Non-SOE)

Acquisitions Involving a Cultural Business

Mode of Acquisition

WTO Investor (Non-SOE)

WTO Investor (SOE)

Non-WTO Investor

C$1.931 billion in enterprise value

C$1.287 billion in enterprise value

C$512 million in book value of assets

C$5 million in book value of assets

$C5 million in book value of assets

Direct

Indirect (through

Not Reviewable (unless acquisition involves a cultural business)

C$50 million in book value of assets

C$50 million in book value of assets*

acquisition of a non-Canadian corporate entity)

* For an indirect acquisition of a cultural business, a lower threshold (C$5 million) applies where the value of the worldwide assets of the Canadian business being acquired exceeds 50% of the value of all assets being acquired.

Doing Business in Canada