Canadian Film Weekly (Mar 19, 1947)

ing the film industry in Canada, it is suggested that this tax would be a proper subject for discussion in the forthcoming trade negotiations with Canada.” The supplementary statement, which details tax difficulties and trade restrictions as they exist in each country to which American films are exported, is intended for the information of the USA representatives at the conference of 19 states, beginning April 10th in Geneva, Switzerland. The purpose of the conference is to negotiate reciprocal trade agreements and establish an international trade organization. Another condition commented on in the statement is the preference shown by Canada to British, French, Polish and Ukrainian films in the rate of duty on positive films. While films from those countries are taxed 114c per foot, those from the United States bear an impost of 244c per foot. “While none of these rates is excessive,” says the statement, ‘the preference in favor of certain other foreign films is undesirable in principle and should be eliminated.” On negative films the duty is 2714%.ad valorem, based on the intrinsic value of the film, a rate fixed under the Trade Agreement of 1938 with Canada. In dealing with the remittance tax, the statement says: ‘Section 9(B)2 of the Income War Tax Act of Canada imposes on all persons who are non-residents of Canada an income tax of 15% in respect of payments received from Canadian debtors in respect of certain types of royalty payments; provided that, in the case of motion picture films, % of the payments shall not be subject to such tax. The tax convention between the United States and Canada does not provide for relief against this tax, except that it places a ceiling of 15% upon the rate.’’ This type of tax, according to the AMPA, should properly be the subject of tax negotiations instead of being arbitrary, for as such it is open to many of the objections directed at the so-called “transmissions” tax imposed in many foreign countries on USA films. Canada is, next to the United Kingdom, the outstanding foreign market for United States films, the statement informs the committee. American films are popular throughout Canada,. including both the English and French speaking sections. It is estimated that over 95% of the full-length motion pictures shown in Canada are American, the remainder being principally British and French. The domestic film pro Canadian FILM WEEKLY May Ask for New Figure at Forthcoming Meeting For Trade Talks (Continued from Page 1) ducing industry in Canada, it says, is confined principally to short subjects and no feature length films are produced. The receipts of the industry from Canada average about 10% of all its receipts abroad. The statement that Canada produces no feature films is a fact at the moment but will no longer be true in April, when Eagle-Lion releases “The Whispering City” and PRC in Canada and Screen Guild in the USA release “Bush Pilot.” Both films were produced by Canadians, the first in Quebec and the second in Ontario. While Canada is referred to in the statement as the second-best “foreign” market for USA films, it is part of the domestic market administratively. Some companies treat it as one of their domestic districts, while with other firms the Dominion territory is merely part of a division which is made up of areas on both sides of the border. The statement informs that the receipts from Canada average about 10% of all the USA’s film receipts from abroad. But Canadian film men rarely refer to that fact, since they are mainly concerned with Canada as part of Hollywood's domestic market—the USA and the Dominion. Of Hollywood’s domestic market, Canada’s film rentals are between four and five per cent of the total. In the introduction to the statement the AMPA declares that “The United States market is completely free of any governmental restrictions to the entry and exhibition of foreign films” and that ‘there are no discriminatory tariffs, taxes or licensing requirements.” Nor do intraindustry arrangements operate to exclude foreign films, despite such allegations, for. the great success of certain British productions is proof that ‘‘American exhibitors are ready and an CHILDREN ON TRIAL Now Playing To Record Breaking Business at CIRCLE AND MIDTOWN THEATRES Toronto | ASTRAL FILMS _been beneficial to the econo xious to handle any foreic, in whatever way may be ar priate to the needs and tacts the American market.” There are numerous asp; the film industry which, governmental systems of countries, are treated ag local problems, including tions of taxation, censors} licensing, it is pointed oy American export industries also affected by local pro lie but not so acutely as the ah dustry. “Furthermore, the that receipts from film exhitj. tions have the character in Jaw of royalty payments rather than revenues from direct Sales, as in the case of the average commodity, has, it will be noted, ver special and difficult fiscal conse. quences.” ee) Other points made in the troduction are: te The United States has been by far the most important source of motion pictures for theatres throughout the world, ey American motion pictures have bY) of the countries in which have been distributed. They _ made it possible in many countries where local film industries have not existed to finance the construction and maintenance of motion picture theatres, which obviously depend on a continuous source of supply of films for profitable operation. The United States film industry is proportionately more dependent upon foreign markets than virtually any other major American industry. It is generally accepted in the industry that 85% to 40% of the total cost of American production is derived from foreign exhibition. ; The importance of the motion picture as a medium for the in terchange of culture, and other similar considerations, lift this industry out of the realm | purely commercial considera! Ticket-Taker Injuré By Falling Chimney Richard Shaw, ticket taker ®” the Famous Players Orpheus Theatre in Halifax, was slightly injured when high winds causé the chimney of the theatre a collapse and fall through lobby skylight recently. Dor Creighton, candy-seller who nearby, was not touched DY ~ falling debris. nf. Some 1,500 patrons wer tending the performance a” left quietly by the exits with a trace of panic. Rumors: ambulances, police and 4 to rush to the scene,