Report Proposes Overhaul For Irish Film Tax Breaks

by Jason Gorringe, Tax-News.com, London

13 February 2008

The Irish government needs to re-think its funding strategy for the film industry in order to attract a higher volume of productions to the country, a report from consultancy firm Idecon has revealed.

According to the Sunday Business Post, the report, which coincided with the most recent budget, suggested that Ireland had fallen behind the higher, more innovative pace of countries such as New Zealand, South Africa and Canada in its attempt to attract major new films.

In order to combat this problem, the report suggested removing the Section 481 tax reliefs and replacing them with a grants scheme.

According to Indecon, under Section 481, for every EUR100 raised, the exchequer cost is EUR34, and EUR19 goes as a subsidy to the film producers.

"In the Irish circumstances, Indecon believes there are significant merits in a grant scheme, which would reduce the net costs to the exchequer, but which would not reduce the levels of support for the sector," the Sunday Business Post quoted the report as announcing.

However, work is being done to raise awareness of the Ireland's film industry, with over 20 of the country's film companies travelling to the US to visit some of the top studio executives.

The visit is also set to coincide with Oscar week, which, it is hoped, will highlight Irish acting talent even further.

Alongside this, Culture Ireland and the Irish Film Board have collaborated to coordinate meetings with US studios, distributors and agents as well as providing travel grants, according to a Press Association report on the trip.

Culture Ireland's chief executive Eugene Downes was quoted by the PA as observing that: "It has been a great year for Irish film and we want to capitalise on the critical and public acclaim for features like Once, Garage and Kings."

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