Category: Baystreet Newswire
Company: Seal Point Consulting LLC
Date: Thursday, August 28, 2014
MIAMI BEACH, FL / ACCESSWIRE / August 28, 2014 / Cre8tive Works, Inc. ("Cre8tive") (FILM) today announced details of its unique financing model designed to provide faster, higher and more risk-averse returns from its film projects by taking full advantage of British Columbia's Production Services Tax Credit (PSTC).
The Production Services Tax Credit (PSTC) is a refundable corporate income tax credit allowing production corporations to claim a large percentage of the labor costs incurred in British Columbia while making film, television, digital animation or visual effects productions. The tax credit is not subject to any Canadian content requirements and is available to either Canadian or international productions as long as they are produced in British Columbia.
Credits from the PSTC are applied to reduce tax payable and any remaining balance is paid directly back to the corporation in cash. There is no limit on the amount of PSTC that may be claimed on a particular production from any production company including a corporation or group of corporations. The following slide in Cre8tive Work's Investor Presentation clearly illustrates how the Company collects the PSTC tax credit from film and entertainment projects.
Image: https://www.baystreet.ca/uploads/FILMFundingCaseStudy.jpgCre8tive Works also provides a separate Funding Case Study and Tax Credit Scenario on its corporate website that explains its financing model in full detail.
CEO of Cre8tive Works, Andrew McLaughlin, commented, "Cre8tive Works believes it is very important that our shareholders and the investment community fully understand the Company's business model as it promotes faster, higher and more secure financial returns through the use of the British Columbia's PSTC Tax Credit. Due to the fact that this tax credit provides a significant production refund typically in the range of 40 to 50% of the total spend and is paid in cash, Cre8tive Works is able to recoup a large percentage of its investment usually within the first year of production."
"With most or all of our investment recovered from the PSTC Tax Credit, all net revenues from any film we invest in will be entirely or almost entirely profit for the project. This provides us with guaranteed revenue from the tax credit in a timely manner completely independent of the film's financial success and release date. This is a tremendous asset to Cre8tive Works that allows the Company to invest in more projects because the tax credit mitigates our financial risk therefore we expect to steadily increase our revenues and shareholder value moving forward," concluded Mr. McLaughlin.
About Cre8tive Works, Inc.Cre8tive Works, Inc. specializes in the financing of production ready, independent films and documentaries that have great potential for financial success. The Company's mission is to identify projects that strike a balance between artistic integrity and commercial viability for the international market and to develop strong relationships with independent filmmakers that will assist them in bringing their vision to fruition while ensuring a solid financial return. For more information, visit the Company's corporate website, www.Cre8tiveWorks.net.
Forward Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Cre8tive Works, Inc.'s filings with OTC Markets, which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Cre8tive Works, Inc.