Tax shelter: the tax department is no longer giving the go-ahead
Wednesday, 20 May 2015
Since January, there have been no tax rulings accorded to film producers. This judicial insecurity has led to some suspending fund-raising for their films, Le Soir reported on Wednesday. The Anticipated Decisions Service for the Finance Administration has accorded no rulings to producers that want to raise funds from investors. These rulings are a guarantee that the tax administration will not go against the tax agreement between producers and their investors.
The obstacle comes from the difficulty in interpreting certain parts of the law, including the way to calculate the amount of funds that the producer can raise.
At this time, the impact on the financing of new films remains small. But some producers have decided to wait for the problem to be resolved before going onto the market. The Finance Minister’s cabinet is only saying there will be meetings soon.