Risks & guarantees

A Tax Shelter investment entails risks that should be considered before investing.

The main risks

The main risks

Producing an audiovisual or theatrical work is a high-risk activity. For the investor too, the Tax Shelter investment presents certain risks, the main one of which is not obtaining or only partially obtaining the certification issued by the SPF Finances that finalises the tax relief.

The most common reasons that might result in certification of the tax relief not being obtained (or only partially obtained) are as follows:

  • The project has not been finished;
  • The project’s launch was delayed and expenditure was incurred more than 18 months after the raising of the funds;
  • The expenditure in Belgium was insufficient in relation to the funds raised;
  • Certain expenditure was rejected by the tax authorities due to non-compliance with the Tax Shelter legislation;
  • Etc.

All of the risks are detailed in section 3 of the Prospectus, section 2.4 of Supplement no.1, section 3 of Supplement no. 2 and section 2 of Supplement no. 3. Investors need to be aware of these risk factors before making any investment decision.

The lack of financial details and experience at SCOPE in  relation to the Tax Shelter for performing arts” constitutes another risk factor detailed in point 2.4 of  Supplement nº 1.

Management of risks by SCOPE

Management of risks by SCOPE

For optimum management of the risks to which investors are exposed, SCOPE is careful to select audiovisual or performing arts projects for which the pre-funding is already well underway and for which the main assessment criteria have been met. This “green light” procedure is a key stage in the (co)production profession and provides initial protection for the investor.

Another element to be taken into account by the investor before choosing their Tax Shelter partner is the latter’s financial soundness. What capacity does the producer have to reimburse and/or compensate the investor in the event of a problem?

Apart from its proven experience of the industry (over 100 audiovisual projects which have already passed the relevant audits), SCOPE possesses the particularity, courtesy of SCOPE Pictures, of carrying out the auditing of required Belgian expenditure internally.

Lastly, the company benefits from a solid financial footing (8 million euros in equity) and offers investors a joint indemnity undertaking covering any loss of the tax benefit and which involves the various companies within the group, namely SCOPE Pictures (or Sceniscope for “performing arts” projects), SCOPE Invest and SCOPE Immo.

All of the risk management mechanisms are described in section 4 of the Prospectus and section 2.5.1 of Supplement no.1.

Newsletter

Calculation tool