Film tax abuse scam costs public purse €23m

FILM companies and investors abusing a State tax relief scheme have been forced to pay back €4.5m to the Revenue Commissioners as part of a clampdown on a scam that has cost the taxpayer more than €23m.

Production firms abusing the system are being targeted by new revenue inspectors. In the first project of its kind up to 30 films will have their spending budgets trawled through.

Under section 481 of the Taxes Consolidation Act 1997, tax breaks are offered to investors putting up money for films which then generate cash for local economies where the productions are shot.