Irish budget shortens film tax relief lifespan

The Irish budget has brought forward to December 31 2004 the termination date for Section 481 film tax relief, previously set for April 5 2005.
Irish finance minister Charlie McCreevy said: "Given the current and prospective budgetary position, and the desire to improve equity in the tax system, there is no justificiation for a continuation of this relief beyond 2004."
Rod Stoneman of the Irish Film Board commented to IFTN: "It would be extraordinary if the Government denies itself the significant net financial benefits to the Irish economy, which are generated by Section 481. Apart from underpinning the continued success of the indigenous industry, this tax incentive is essential to maintaining Ireland's attraction as a location for international productions. In addition, the film industry has important positive effects on other parts of the economy, such as tourism."
Tania Banotti, outgoing director of Film Makers' Ireland, said: “We welcome the fact that Section 481 will continue until 2004 and that the Minister has recognised it still has a crucial role to play, albeit for a shorter time. As a result, the industry can see its way forward for the next two years.
"We will now be engaging with the Department on the longer term strategy for film and TV production in Ireland”
(GB)