05/12/2006

The Soficas (finance companies for the film and audiovisual industry) are undergoing further reform after the rejection by the Finance Commission in France’s Lower House of Parliament of the amendment to the 2006 finance bill on the fiscal regime of the Sofica investments, which will now provide tax reductions (40% of sums invested within the dual limit of €18,000 and 25% of overall net turnover) instead of a deduction in taxable turnover as originally planned.

In 2005, the Soficas provided funding to 78 French features (including 26 debut features) for a total sum of €31.63m and are a source of much sought-after financing to secure budgets for independent productions, in particular.

To express their concerns, 15 professional organisations are asking members of Parliament to keep the original measure, which allows savings to be used to encourage independent production, whose survival ensures diversity and creativity.

Moreover, the signatories have pointed out that any delay in the adoption of the text will make the fundraising of much needed financing for film and audiovisual production in 2007 almost impossible. A significant number of productions would therefore be under threat. In addition to this urgent situation, financing as a whole in the sector hangs in the balance and may lead to detrimental consequences, which could in turn impact creativity and employment.

The signatories are: API (Association of Independent Producers), ARP (Association of Authors, Directors and Producers), CSPF (Chamber of Film Producers Unions), D.I.R.E. (European Independent Distributors), FICAM (Federation of the Cinema, Audiovisual and Multimedia Industry), FNCF (National Federation of French Cinemas), FNDF (National Federation of Film Distributors), PROCIREP (Producers for Cinema and Television), SEV (video publishing union), SPI (Independent Producers Union), SPFA (Producers of Animated Films), SRF (Society of Film Directors), UNEVI (Union of Independent Video Publishers), UPF (Union of Film Producers) and USPA (Union of Audiovisual Production).

(Translated from French)