In its death throws (*) the Administrative Appeals Tribunal has handed down a thrilling decision in respect of the entitlement of the producer of the horror film “Fragmentary” to a refundable tax offset for the “qualifying Australian Production expenditure” incurred by the producer (copy attached).
This is the first decision to consider in detail the scope of the eligibility requirement that the producer be responsible for all activities involved in “making the film”.
The production company, which was incorporated only after scriptwriting and principal photography were completed but prior to formal agreements being put in place as to services and distribution, argued that a film only commenced to be made after formal legal arrangements were put in place.
The Tribunal rejected that argument and affirmed Screen Australia’s decision to refuse to certify the producer’s eligibility for the refundable tax offset.
The decision demonstrates the need for those in the film industry, particularly producers and film financiers, to ensure that all conditions of eligibility for the producer offset are satisfied.
Chris Peadon, led by Richard Lancaster SC, and instructed by Mr Adam Moxon Simpson and Mr Sebastian Tonkin of Simpsons appeared for Screen Australia.
Chris regularly advises participants in creative industries in relation to eligibility for refundable tax offsets (including film and digital game offsets), as well as taxpayers in relation to R&D offsets.
All queries in relation to Chris’ availability and rates should be directed to our clerk, Ms Angela Noakes.
(*) The AAT ceases to exist from 14 October 2024, when it transmogrifies “Teen Wolf-style” into the Administrative Review Tribunal.
