Under the current tax credit legislation, the Ontario services tax credit is available on those qualifying costs incurred “for the stages of production from the final script stage to the end of post-production”.
On March 19, 2015, the Ontario Superior Court ruled and confirmed that costs incurred during the “final script stage” (which includes writer’s fees) should qualify for tax credits. The court found that costs incurred during the final script stage were being occurred after the time that is referred to as “from the final script stage”.
The ruling applies to the Ontario production services tax credit, however, as the same language is used in the legislation of the federal and BC production services credit programs, the ruling is also expected to apply to these programs.
CFC will carefully monitor how governments react to this case.