Phase II - The 'Buck' Stops at Warner Brothers!

[Andrew_Swallow]

I suspect that the suits are reacting to the British tax laws.

General Tax Rules for the Movie Industry

http://www.inlandrevenue.gov.uk/specialist/fi_guidance_notes2003.pdf

Some new tax rules (increases) are being introduced this year.

http://www.inlandrevenue.gov.uk/pbr2004/sup_ta_film.pdf

UK GovernmentÆs definition of a British Film

http://www.culture.gov.uk/creative_industries/film/CriteriaforBritishfilms.htm

and

http://www.culture.gov.uk/NR/rdonlyres/es6o2m7o3xvjfgcxbx3pz3xmebazcnybbytflbq3xscaxcxfdqd5erv4leuog6vips462lckf7yevxtwqzyhlf45thf/qualifyingbritishfims.pdf

Extract

(b) 75% of the total labour cost - after deducting the cost of two persons whose nationality must be non-Commonwealth/EU/EEA/Association Agreement country, and one of whom must be an actor (and engaged in making the film in no other capacity) - must have been paid to citizens or ordinary residents of the Commonwealth, EU/EEA or a country with which the European Community has signed an Association Agreement*;

(Translation you are allowed 2 Americans)

Benefits of getting the film classified as British

http://www.culture.gov.uk/NR/rdonlyres/e673kot4m5n6symop3bvs3sp7sasa5pukdf5wmkwkcnan7johfmpl3lxnjnaw3smrwpwm6h2nesv4otqv6uou5eglze/BENEFITS.pdf

(I think it means that on a big film the studio can deduct tax over fewer years.)