Restaurants Canada fights increased music royalty costs

Published November 24, 2014

(Nov. 24/14) Restaurants Canada has been appointed to the Ministerial Advisory Committee on the underground economy. This initiative is one of several launched by the Canada Revenue Agency to target the black market, and will be chaired by the Minister of Revenue Kerry-Lynne Findlay.

Tax evasion results in unfair competition for law-abiding restaurant owners. As most restaurateurs are honest, dedicated business people who pay their fair share of taxes and operate in full financial transparency, it in the industry’s best interest to make sure those who don’t are penalized. At the same time, it’s important that the committee’s work doesn’t impede the above-ground economy. Restaurants Canada will work to ensure that no financial or red tape burden is placed on law-abiding members in an effort to catch the few that cheat.
Read the strategic plan (French) for reducing participation in the underground economy.

(Nov. 11/14) Restaurants Canada opposes a Re:Sound proposal that would significantly increase what members pay to play background music in restaurants.

Re:Sound states it is not seeking a rate increase for Tariff No. 3.B., which is the cost of royalties for background music. However, it wants an inflation adjustment and “minor administrative changes” that would hike costs for members.

Proposed changes include a minimum fee and an expanded definition of “establishment.” The new definition includes employees as members of the public, which would extend the tariff beyond the public dining space to back-of-house areas.

Restaurants Canada opposes this definition change, as well as other aspects of the proposal that would negatively impact our members. We are taking the lead to complete satisfactory negotiations by Dec. 10, with the co-operation of the Hotel Association of Canada and Retail Council of Canada.


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