Tuesday 26 March 2019

Movie and television tax scheme facing shake-up

Made in Ireland: TV hit Vikings qualified for tax credits here last year
Made in Ireland: TV hit Vikings qualified for tax credits here last year

Gordon Deegan

Movie and TV production firms claimed corporation tax credits totalling €95m in 2018 - more than double the €45m claimed in 2016. However, incorrect claims have led to a backlog being processed by Revenue Commissioners.

According to Finance Minister Paschal Donohoe the scheme as currently designed requires upfront verification of claims and this means that the normal tools to discourage incorrect claims - interest, penalties, publication and prosecution - are not available to Revenue.

In a written Dáil reply to Fianna Fáil leader Micheál Martin, Mr Donohoe stated: "Accordingly, a considerable amount of Revenue time is being taken up addressing incorrect claims. Revenue has informed me that there has often been protracted correspondence with claimant companies who do not have sufficient records to support their claims, and this in turn leads to inevitable delays."

Mr Donohoe said Revenue has advised there is an issue with the scheme's design and new provisions will change the way companies claim the film corporation tax credit and address the difficulties.

Large scale productions such as Vikings and Nightflyers last year qualified for tax credits between €10million and €30million last year though there is no suggestion that any firms behind those productions submitted incorrect or incomplete claims.

Irish Independent

Also in Business