We’re sure you will agree, receiving your Producer or PDV Tax Offset as quickly as possible is fundamental to successful film production.
There’s a lot to think about and as no two audits are the same, there’s no rule book to help you. Unless handled by experts, your film audit can result in lost time, with serious consequences. The bottom line is this… delays in the audit process that hold up your offset payment will cost unnecessary interest on your finance.
At Rosenfeld Kant, we have over 10 years’ successful film audit experience on hundreds of productions including Bondi Rescue, Mao’s Last Dancer and Jack Irish and we understand how critical it is for you to receive your offset as quickly as possible post-production. This is why we’ve developed a streamlined and structured process we call the QAPE Audit Framework of Efficiency. Its central goal is to eliminate any possible question or objection by POCU that could delay your offset payment.
In this 3-part series, we highlight three important aspects of our Framework. Our aim is to provide the information you need so that you breeze through your next film audit …
#1 Understanding Film Audit Requirements – The devil is in the detail
Film auditing is a highly specialised area and this is why it’s imperative to put in place a professional audit team with demonstrated experience.
First things first, you’ll need an auditor who is known for their commitment to their clients and the delivery of an excellent, thorough service; who understands the rules including the lesser-known ‘quirky’ conditions that can maximise your offset, while strictly meeting compliance guidelines. Importantly, who can apply a ‘helicopter view’ that not only pre-empts the issues at hand, but extends to offering advice that integrates with other associated business and individual financial matters.
By putting your audit in the hands of experienced and accomplished auditors, you can avoid excessive interruptions that are distracting and stressful for you and your team.
Perhaps the main benefit of working with a specialist is that they fully understand what’s required to ensure a smooth and efficient process that avoids delays in receiving certification and submitting your tax return. They understand the rules that determine whether or not an expenditure is QAPE, including the quirky conditions that less experienced auditors don’t know about. They can help establish your SPV.
If you don’t already have one, a client-focussed auditor can usually recommend a good production accountant thanks to their wide network of industry professionals, and then seamlessly coordinate with them to achieve the outcomes you need. An experienced film auditor will also be able to assist you with introductions for film finance and provide accurate QAPE opinions to secure your funding.
From pre-production forward, your film auditor will be able to guide you as needed on the types of expenditures that need to be recorded and in which format. They have experience with specific software (including Goldfinger) that further reduces the chance of delays. As your audit partner and coordinator, their ‘helicopter view’ will pre-empt and fix issues that could become problematic.
Importantly, specialist film auditors will also offer valuable insights with regard to best practice film production accounting. This includes advice on asset protection structures for protecting your interests, minimising your taxation obligations, efficient financial management, adhering to compliance and taxation matters that can extend to requirements specific to employing non-Australian cast and crew. This is all part of QAPE Audit Framework of Efficiency that we’ve developed over the last decade as specialist film auditors.
Next Step
To find out more about our Rosenfeld Kant Film Services Division team, our QAPE Audit Framework of Efficiency and how we work with Australian producers or production accountants working on movies, documentaries and TV series, large and small, please contact Tamara Kay on (02) 9375 1200 or tamara@roskant.com.au.
How to Receive Your Tax Offset Quickly
#1 Requirements | #2 Preparation | #3 QAPE Audit Framework of Efficiency
The information (including taxation) contained within this article is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Rosenfeld Kant SMSF Advisors strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.