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Archive for September, 2015

Financing Tax Credit Incentives

Tuesday, September 29th, 2015

Tax credit incentives in Canada play a key role in the financing of ‘ media ‘ projects in film, TV, and digital animation. Given the somewhat limited access for independent producers to specialized Canadian chartered bank financing how and where do independent film financiers play a role in getting our project fully financed? Let’s dig in.

Specialized loan funding and media financing comes a lot easier if the producer/owner has a bit of an inside track via the following information. Not only did the 2008-2009 world wide recession take manufacturing, technology and service industries down, it also slowed down the ability of the entertainment industry to access the capital it needed. Almost no hedge fund firms, angel investors, or VC’s in Canada offer film tax credit or equity/debt finance solutions. This forces project owners to work even hard to access capital.

There are different players the owners/producers must deal with to get a project fully financed. They include equity investors, the project owners themselves, government funding, and niche financiers specializing in pre-sale, distribution, and gap financing.

Projects that can access film, TV and animation finance solutions require a strong focus, experience, and the ability to forge relationships with independent film financiers to pull a full financing package together.

Producers that are not well known, just starting out, or focusing on smaller projects generate very little interest from the bank film financing sector. In fact to our knowledge some of the Canadian banks do not participate at all when it comes to proven strategies such as tax credit financing.

In Canada provinces such as Ontario, B.C., and Quebec garner most of the tax credit ‘ action ‘. Using digital interactive media projects as an example Canada has become a hot bed of workers with talent and skills and technological savvy when it comes to working on media related projects in film, television and interactive media.

While tax credits often can finance up to 30-50% of a project independent film financiers can provide bridge loans, distribution financing, and print and advertising finance.

Critical to accessing support from an independent film financier is the ability to pull a team together. That team can be internal or external and the expertise there will save you two things – time… and money! Typically that team will include a tax credit accountant and a lawyer or law firm.

Refundable tax credits account for a large portion of the billions of dollars of revenue and employment that comes from media and film. The credits are a combo of federal and provincial, provincial of course depending on where you project is produced, filmed, etc.

The tax credit accountant will maximize your claim, as well ensuring its approval and viability for financing. (Often an’ opinion letter ‘ is provided by the film tax accountant verifying the calculations in your claim)

Depending on what province you’ve chosen to domicile your tax credit in different percentages are applied to your refund for your total ‘spend’. The tax credit is, simply speaking, a ‘ point system’ whereby you get, or lose points based on Canadian content, foreign involvement, whether the producer is Canadian, where you film, etc.

Two quick clarifications: Partial foreign ownership of your projects is called a ‘ co production’ and must be validated up front. Where you film or produce gives you what’s known as a ‘ Regional Credit ‘.

Independent film financiers also like ‘ slates ‘. That’s a group of projects that lowers the volatility risk of entertainment. Each project typically in Canada is a separate legal entity.

Tax credits that are cash flowed work best when you’ve got good advice and good people working your deal. If you are looking for independent film financiers in Canada to finance tax credits and other parts of a project seek out and speak to a trusted, credible and experienced Canadian business financing advisor.

Canada Immigration Consultant

Tuesday, September 29th, 2015

Canada is one of the most sought after destinations among the immigrant population. The benefits come in the form of a secure employability, opportunities for growth, stable & a growing economy. Most of the immigrants seek a Canadian visa for it being universally accepted and recognized. As part of the OECD community, Canada also provides good remuneration to the skilled immigrant. The government of Canada offers a high level of safety on social systems and employment. Those people who have for some reason lost their jobs are allowed to start afresh and try new opportunities. The immigrants with permanent residency are provided rights at par to a Canadian citizen; and so goes the list on benefits with immigration to Canada.

A Canada Immigration Consultant such as Abhinav Outsourcing would first advise you to first go through its different visas and the governing conditions. It’s most sought after FSWP visa is now being observed on some strict parameters. It is therefore very necessary to give all the conditions a good look and accordingly make an application. Canada applies a points-based assessment of the immigration population based on criterion on age, language, education, experience and skills. Each application is allotted certain points and a minimum of 67 points is a must for the application to become eligible. The immigration policy is a lot more focused on the following six aspects of immigration:-

Age: The immigration policy emphasizes on having immigrants of a younger age group. The applicants who belong to the age bracket of 20-35 do have a good chance to score more on this scale.
Official Language: The policy is very clear on having immigrants who speak a good English / French language. The objective is to have a more productive communication at the workplace. The immigrants are therefore required to take their test on English / French comprehension for a good score.
Work Experience: A more enriched profile and the number of years on work experience should fetch you good points on the total score.
Adaptability: A prior experience on education or stay at Canada should attract you higher points on the
adaptability index.
Employability of the spouse: The immigration policy goes on to also cover the employability of the spouse to add more points to the score. Unlike the past, the skills of the spouse are now being considered towards the merit of the application.
Offer on Employment: A application that already has an offer on employment by an employer in Australia has a better chance of being accepted. These applications are given the most score on the adaptability criteria.

Apart from all these key aspects the Canada Immigration Consultant would also instruct you to also show your financial sufficiency towards meeting your expenses while on stay. An endorsement / statement by a financial institution in Canada should prove your access to funds that are enough to support your immigration in the early stages. Altogether, the application on immigration should substantiate every reason for the immigration being economically viable.