Broadcasters, Ottawa settle over tax fees; Feds forgive $450 million fee

The federal government has agreed to forgive $450 million in fees it is owed by the country's broadcasters and cable industry, but will set up a new funding structure that would see them pay up to $100 million a year. Ottawa said it would not seek the money held in escrow by the broadcasting industry on the so-called "Part 2 Licence Fees," which the government levies to raise money to run the airwaves.

In return, the industry has agreed to drop a court action that claimed the fees were unfair and illegal because they exceeded the cost to the government of running the airwaves.