Changes in tax relief threaten film industry

 

THE reduction of tax relief for investment in the film industry could kill the fledgling industry, according to the chairman of the Leinster Society of Chartered: Accountants.

Mr Cyril Maybury maintained the restriction of Section 35 relief to 80 per cent of any investment, and the plan that tax relief would only be available on the date of the commencement of principal photography, would drive investment away from the industry.

"This seems to me to be an attempt by the Department of Finance to kill the film industry. Certainly it will swing investments now towards BES funds" he claimed.

Commenting on the outline of the Finance Bill published last week, he said there was not enough detailed information on the measures proposed. Chartered accountants had expected more details to be included.

"Unfortunately, it adds little by way of detail to the content of the Budget speech," he said.

Offering elderly persons who: live alone a tax allowance to install alarms was an ineffective way of encouraging them to improve their security, he said. A direct cash grant would be much more effective even if it was means tested, he suggested.

Plans for changes in the taxation of mineral exploration/extraction with regard to expenditure on restoring a mine site after the mine had closed were unclear, Mr Maybury added.