Fianna Fáil spokesperson on Arts and Heritage Niamh Smyth TD says that the ongoing delays in providing guidance for tax reliefs announced in Budget 2019 for the film industry are causing unnecessary and widespread damage as the government stall on introducing the changes.
The Finance Act 2018 made considerable changes to section 481 tax relief including extending the relief to 2024, introducing increases in the region and other administrative changes. Officials in the Department of Culture, Department of Finance, and the Revenue Commissioners have been reviewing draft regulations for nine months.
Deputy Smyth commented, “It is extremely disappointing that the film industry is being put under considerable pressure as a result of delays in the introduction of new regulations for section 481 relief. These changes were well flagged months in advance, and yet almost 4 months into 2019, and at least 9 months since revenue started working on this issue there is no clarity on how the scheme will actually operate.
“We now have a situation where representatives of the film industry have indicated that projects risk being defunded. It is somewhat ironic an incentive to encourage the development of the industry is now causing damage. Our film industry has achieved international regard and competed on the same level as production companies in Los Angeles or London.
“The Minister for Culture and the Minister for Finance must now urgently clarify when these regulations will come into place,” concluded Deputy Smyth.