WSJ: Hollywood Pushes Back Against New China Tax

Become a member of the CGSociety

Connect, Share, and Learn with our Large Growing CG Art Community. It's Free!

THREAD CLOSED
 
Thread Tools Search this Thread Display Modes
Old 05 May 2013   #1
WSJ: Hollywood Pushes Back Against New China Tax

Quote:
"
Twentieth Century Fox is refusing to accept about $23 million it is owed on Chinese box-office receipts for producing "Life of Pi" as a result of a clash between Hollywood and Chinese authorities, studio executives say.

Hollywood studios are working to resolve a dispute with China. Pictured, moviegoers walk past a 'Skyfall' poster after the firm's premier in Beijing.

The dispute centers on a new value-added tax that China is in the process of imposing on a wide range of goods and services. When it comes to movie tickets, state-owned distributor China Film Group has recently sought to deduct the cost of the tax entirely from foreign producers' share of the box office, said several people involved in international film distribution.

The tax method is causing consternation in Hollywood, where it is seen as the latest in a series of efforts to limit American studios' ability to generate profits in China despite a deal last year that was supposed to open doors. The policy undercuts one of the provisions of that agreement, reached between the American and Chinese governments, which bumped up the percentage of ticket sales that foreign producers receive."

http://online.wsj.com/article/SB100...eTabs%3Darticle
__________________
LW FREE MODELS:FOR REAL Home Anatomy Thread
FXWARS
:Daily Sketch Forum:HCR Modeling
This message does not reflect the opinions of the US Government

 
Old 05 May 2013   #2
Is it wrong for me to be excited about this? I hope they chase all the business right out of China and back into my loving arms.
 
Old 05 May 2013   #3
Life of Pi generated 91mil in China, initially fox was suppose to get 23mil, but after the tax they are left with 2mil. That's some nasty deal they have there. Makes it almost pointless to even run the movies in China.
__________________
Perry Shulak
Design, Illustration, writing and interactive media
www.criticalfusion.com
www.perryshulakcreative.com
 
Old 05 May 2013   #4
Originally Posted by x24BitVoxel: Is it wrong for me to be excited about this? I hope they chase all the business right out of China and back into my loving arms.

I'm there with you buddy!
 
Old 05 May 2013   #5
Originally Posted by PerryDS: Life of Pi generated 91mil in China, initially fox was suppose to get 23mil, but after the tax they are left with 2mil..


That's incorrect. They will be left with 21 million, not 2 million:

"China Film's imposition of the new tax would reduce Fox's take by approximately $2 million,"
__________________
I like to learn.
 
Old 05 May 2013   #6
Thing is, they lose a lot of money because its hard to track how many theatres the movie is playing in. Speaking to a friend here, he said that often there are many screens playing the movie "illegally", so the money never makes it back to the creators. And apparently its rampant there.
 
Old 05 May 2013   #7
Thread automatically closed

This thread has been automatically closed as it remained inactive for 12 months. If you wish to continue the discussion, please create a new thread in the appropriate forum.
__________________
CGTalk Policy/Legalities
Note that as CGTalk Members, you agree to the terms and conditions of using this website.
 
Thread Closed share thread



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
CGSociety
Society of Digital Artists
www.cgsociety.org

Powered by vBulletin
Copyright 2000 - 2006,
Jelsoft Enterprises Ltd.
Minimize Ads
Forum Jump
Miscellaneous

All times are GMT. The time now is 08:34 AM.


Powered by vBulletin
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.