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DS 3: Clawback of deductions for film reimbursement schemes
or “Repaying tax deductions for film reimbursement schemes when property is sold”
You could also call this:

“What a film reimbursement scheme is and how it works”

A film reimbursement scheme is a special arrangement for people involved in making films. Here’s what you need to know about it:

You can be part of this scheme if you spend money on things related to films. This could be buying the rights to a film or getting money based on how well a film does when people watch it or buy it.

The scheme allows you to get some money back for these expenses. It works in a few different ways:

You or someone connected to you might be able to sell something because of this scheme. Or, you might get the right to sell something. Sometimes, the scheme might give you a right that creates an obligation, and you can meet this obligation by selling something.

One important thing about this scheme is that some or all of the money you get from selling these things wouldn’t count as film income.

This is part of the rules about deductions in the Income Tax Act 2007. The government made these rules to help people in the film industry manage their expenses and income in a special way.

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or “Limiting deductions for overseas petroleum mining expenses”
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Part D Deductions
Film industry expenditure

DS 4Meaning of film reimbursement scheme

  1. Film reimbursement scheme means an arrangement to which subsections (2) to (4) apply.

  2. The first requirement for a film reimbursement scheme is that it is a scheme under which a person may incur expenditure for which they are allowed a deduction under—

  3. section DS 1 or DS 2, or would be allowed a deduction in the absence of section DS 3:
    1. subpart DA (General rules), if the expenditure is for—
      1. a film right:
        1. a right to an amount that is dependent on or calculated by reference to income from the rental, sale, use, or other exploitation of a film.

        2. The second requirement for a film reimbursement scheme is that 1 of the following applies:

        3. it enables the person or an associated person to dispose of property; or
          1. it gives a right to the person or an associated person to dispose of property; or
            1. it gives a right, the right creates an obligation for the person or an associated person, and the person or the associated person may meet the obligation by disposing of property.

              1. The third requirement for a film reimbursement scheme is that it is a scheme under which some or all of the consideration for the property would not be film income.

              2. Repealed
              Compare
              Notes
              • Section DS 4(5) heading: repealed, on , pursuant to section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
              • Section DS 4(5): repealed, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
              • Section DS 4 list of defined terms 1973 version provisions: repealed, on , by section 96(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section DS 4 list of defined terms 1988 version provisions: repealed, on , by section 96(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section DS 4 list of defined terms 1990 version provisions: repealed, on , by section 96(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section DS 4 list of defined terms loss-attributing qualifying company: repealed, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).