EXM-N04 — Sponsorship. ETA s.135

Sponsorship. ETA s.135: where a public sector body supplies a service, or licenses its copyright, trade-mark, trade-name or similar IP, to a sponsor for use exclusively in publicizing the sponsor's business, it is deemed not to be a supply. Exception: where the payment is primarily (more than 50%) for advertising on television or radio, or in a periodical publication, it is a taxable advertising service. Real property and naming rights are not relieved — CRA's example: a $1M naming-rights deal is taxable