End to Tax Credits That Are Contrary to Policy
Wednesday, April 16, 2008
The Canadian Government has proposed changes to the film and television production tax credit that has stirred up controversy. Josee Verner, Canadian Minister of Heritage, has introduced Bill C-10 that would prevent film makers from claiming the credit for films which include content that is considered to be contrary to public policy.
Industry supporters charge that the proposal will force film makers out of Canada to go elsewhere because they will not be able to obtain sufficient funding. The Banks are not likely to provide funding to productions that are not eligible for the funding based on the current formula used to determine funding availability. Given that Canadian television programming receives some public funding, as was confirmed by Sarah Polley in a recent Global and Mail article dated April 11, 2008, this seems like a valid concern for the industry. The industry has conceded that where the production violates Criminal law such a limitation is reasonable; however, where no laws are violated this restriction is essentially a form of censorship.
The issue is expected to be revisited by the Senate Banking Committee.
Comments