Ireland Needs More Tax Incentives To Entice Hollywood
The Chairman of the Audiovisual
Federation (AF) in Ireland, John Cummins, has spoken out about the country's
film taxation regime, claiming that if more tax incentives are not offered to
foreign productions locating in Ireland, the Emerald Isle could lose out to
countries with more attractive regimes, such as Canada. Currently, Section 481 of
the film tax legislation offers 80% tax relief for overseas productions choosing
to locate in Ireland. However, the AF chief believes that with such fierce competition
elsewhere, this just isn't enough any more: 'We need Section 481 to offer 100%
tax relief, as is the norm elsewhere,' he argued last week. According to Rod Stoneman,
the Chief Executive of the Irish Film Board, although film production in the
country was buoyant last year, the use of Ireland as a location has slowed substantially,
with only one significant US production, 'Reign of Fire' having been made in
the country in 2001. Money invested in foreign
productions is used to fund the domestic film industry, and Stoneman and Cummins
believe that unless changes are made soon, both the indigenous film industry
and the Irish economy, which despite the tax foregone under Section 481 has
benefitted significantly from overseas investment in the past, may suffer serious
and permanent damage. .
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