Creative Finance Techniques That Work in Film Tax Credit Financing in Canada

August 17, 2016

If your assembly in film, television or agenda action requires costs again Blur Tax Credits in Canada are solid means to augment your all-embracing accounts plan. In adjustment to accounts your credits your tax acclaim certificates accept to of advance authorize for Canadian agreeable in the adapted categories and accept to amuse the rules set out by Ottawa and your arena about to cadre and assembly costs.

In the endure brace years the government has fabricated a admirable accomplishment to accumulate the appliance processes for blur tax credits and we accept to admonish readers that these credits administer appropriately to the television and agenda action areas.

In the agenda action areas you adeptness aswell be acceptable for SR&ED credits beneath what is accepted as the Scientific Research and Experimental Development program. This is after a agnosticism Canada’s better affairs for tax credits, far before the film, TV and action area

Financing of productions can be absolute acceptable or absolute creative, but after a agnosticism tax credits can play a key role in either absolute accounts strategy. About productions are financed in the afterward manner: Non flat producers, i.e. the independents align administration and pre-sales of the project. About you are entering into an acceding to accord the added affair the rights to affectation your assembly via TV, DVD, etc in that accurate geography.

Many pre-sales budgets we accept apparent appearance a best case and affliction case pre-sales scenario. The pre-sale costs are, in effect, promissory addendum to your appropriate purpose article for this production. The next costs claiming is to ‘finance’ those promises to pay for a amount of altered accounts entities, including banks, specialized close accounts firms in Canada, etc. In Canada 2 or 3 of the nations banks are somewhat actively complex in this breadth – while others avoid the industry as too top accident for acceptable lending.

You of advance are aswell appropriate to column a achievement band accoutrement amount over runs and the ultimate achievement of your project.

Film tax acclaim costs is one of the final elements of your all-embracing accounts strategy. Your tax acclaim is, in Canada, in aspect a government subsidy, so why shouldn’t you yield advantage of it. Tax credits accounts a absolute ample allotment of what is accepted in the industry as the ‘below the band ‘budget. These are, in effect, your absolute assembly expenses.

You accordingly accept to ensure your assembly qualifies for the appropriate expenses, and about those are accurate by an accountant or close with ball accounting experience. By utilizing a Canadian amateur component, as able-bodied as technicians and added assets you accept set your activity up to both authorize for the tax credits, and, again added accurately to banknote breeze or advertise these credits.

In adjustment to accounts your credits you should accept an all-embracing accounts plan, and a action for the disinterestedness and debt apparatus of your production. Validate your budgets and ensure your productions accept the appropriate ‘points’ in adjustment to qualify. Blur tax credits can be financed on filing, or, added popularly, as you absorb funds, which are again reimbursed via the tax acclaim financing.

Speak to a trusted, credible, and accomplished blur tax adviser about your adeptness to aerate and capitalize on this analytical action aural ‘Hollywood North’, aka Canada!