The Finance Act 2011 provided for an extension of the film relief scheme to the end of 2015. In that context I believe it is now appropriate to review the scheme in the context of making timely decisions regarding the future of the scheme after 2015. the 2009 Commission on Taxation recommended that film relief should be the subject of regular review. It was last reviewed in 2007. The terms of reference for this Review, which is currently underway, involved the evaluation of the tax expenditure scheme in broad socio-economic and fiscal terms, and are summarised as follows:
- Examination of the costs and benefits of the existing scheme, taking into account displacement/deadweight impacts, and the interplay between this and other tax reliefs;
- The identification of value for money of the scheme to the economy overall;
- Examination of the international competitiveness context within which the sector operates; and
- Recommendations, where and if necessary, for changes that could be made to enhance / maximise the value for money to the tax payer and sustainable job creation and taking digital production and technological advances into account.
Part of the work of the Review also involves an assessment of incentives in a number of competitor jurisdictions including the UK.
Twenty one responses were received following a public consultation process , which ended on 31 August last. These responses can be viewed on my Department’s tax policy website (http://taxpolicy.gov.ie/ ).
My Department is currently examining the responses. I would envisage that the results of the review will be published in due course.