The Canadian Association of Broadcasters is back in court this week for the latest in a series of legal skirmishes over Part Two fees. The Federal Court of Appeals is hearing arguments in Ottawa over the controversial fees, which this time last year were declared an illegal tax by a federal judge.

Last week marked the first time that broadcasters did not pay the fees, which were collected by the CRTC to cover the cost of managing the broadcast spectrum and of certain regional operations. CAB objected because the money was funneled into Ottawa coffers where it was not earmarked for any specific purpose.

That — the broadcasters argued, and a judge agreed — made the fees no different than a tax, which the commission does not have the authority to collect. The CRTC has argued that the fees are consistent with federal cost-recovery policies, and that they guarantee a ‘fair return’ to Canadians for commercial use of the public airwaves.

The Crown is appealing the ruling, but both sides were tight-lipped as the hearing got underway.

‘There’s two parts to the case…whether the fees are a tax, and the other part is whether there should be recovery of the fees paid,’ a CAB spokesperson said to Playback Daily. The hearing was due to wrap on Wednesday, but a ruling is not expected for sometime.

According to one CAB estimate, broadcasters have paid three-quarters of a billion dollars in Part Two fees since the late ’90s.

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This story has been corrected. The Crown is appealing the ruling, not the CRTC as originally reported.