TaxCorporate TaxIngenious strikes back on film tax issues

Ingenious strikes back on film tax issues

Investment company which bankrolled Avatar with cash from some of the UK's biggest celebrities responds to reports of an HMRC probe into its film schemes

The chief executive running the investment arm of a company counting some of
the UK’s top celebrities as investors has scotched claims that the projects are
used to exploit tax loopholes.

James Clayton, CEO of Ingenious Investments told Accountancy Age that
projects which have bankrolled box-office blockbusters such as Avatar were
genuine investment businesses, not tax avoidance schemes.

It emerged last week that
HMRC
was looking into a project run
by parent company Ingenious Media.

Clayton said: “Ingenious has an excellent track record of backing successful
films including Avatar and Night at the Museum. Our film partnerships are not
tax management schemes; they are bona fide film investment businesses.”

Clayton said the projects investors sunk money delivered significant revenue
to HMRC irrespective of where they were made in the UK or the US, for example.

“This is because a significant proportion of the worldwide receipts
(including those of Avatar, for example) are taxed in the UK,” Clayton said.

Clayton emphasised all of the company’s businesses were subject to rigorous
scrutiny and had been found to have been operated in the proper manner.

“In particular, we have consistently demonstrated that investors have claimed
correctly for any losses that they have incurred.We work closely with HMRC and
are open in our dealings with them. We will, of course, keep our investors and
their advisers fully informed of any developments.”

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