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GB 18: Arrangements to acquire film rights or incur production expenditure
or “Rules for film-related tax arrangements to prevent unfair deductions”
You could also call this:

“Rules for delayed or uncertain payments in film production”

This law is about paying for things used in making movies. It applies when you’re supposed to pay for goods or services used in film production, but the payment is either delayed or not certain.

If you’re the person who needs to pay (called the payer), there are two situations where this law matters. The first is when you and the person providing the goods or services agree to delay the payment for a very long time. The second is when it’s not clear if you’ll have to pay at all.

In these cases, for some specific parts of tax law (sections DS 2, EJ 7, and EJ 8, which are about film production costs), you’re treated as if you paid for the goods or services when you actually make the payment, not when you first agreed to pay or used the goods or services.

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Next up: GB 20: Arrangements involving petroleum and mineral mining

or “Rules for tax on special deals in oil and mineral mining”
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Part G Avoidance and non-market transactions
Avoidance: specific

GB 19When film production expenditure payments delayed or contingent

  1. This section applies when—

  2. a person (the payer) is liable to pay any of the costs of goods or services applied in producing a film:
    1. either—
      1. the payment of the costs is deferred under an agreement between the provider of the goods or services and another person, and the period of deferral is excessive; or
        1. the payment is contingent.

        2. For the purposes of sections DS 2, EJ 7, and EJ 8 (which relate to film production expenditure), the payer is treated as incurring the costs at the time of payment.

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