Artykuły w czasopismach na temat „Capital gains tax – Law and legislation – Ireland”

A great deal of debate currently surrounds stock-option-based compensation. Its many facets involve preferential tax treatment, the alternative minimum tax, and financial accounting procedures. The issue involves many; options affect an estimated 10 million people and 20–25 percent of all publicly held U.S. firms. Compensatory stock options were originally incorporated into the Internal Revenue Code in 1950 with the addition of Section 130A. At that time, the incentive effects of this form of compensation were deemed worthy of preferential tax status. In the 1950s, gains associated with tax-preferenced options were taxed at the lower, 25 percent, capital gains rate instead of the 91 percent applied to ordinary income. While stock option provisions have been revised and continue to be the topic of legislative discussion, they remain a part of tax law. This paper traces the legislative history of the special tax status of compensatory stock options and highlights the congressional intent and economic conditions surrounding the revisions made over the past 50 years.

ABSTRACT After numerous failed previous attempts to enact legislation taxing “carried interest” income attributable to services as compensation income versus capital gains, Congress enacted Section 1061 as part of the Tax Cuts and Jobs Act. Unlike previous proposals, which would tax carried interest income attributable to services as compensation income, Section 1061 simply reclassifies some carried interest income attributable to services as short-term capital gain. By choosing to treat carried interest income attributable to services as short-term capital gain instead of as compensation income, Section 1061 exempts such income from self-employment tax and allows taxpayers to offset such income with an unlimited amount of short-term capital losses. This paper reviews the requirements under Section 1061 and explains several ambiguities created by the new law. In addition, this paper examines whether Section 1061 follows sound tax policy. The authors find that Section 1061 does not follow the tax policy concepts of equity and fairness, economic efficiency, neutrality, simplicity, or certainty. In addition, the authors find that Section 1061 will have minimal impact, as most carried interest is held longer than the required period to qualify as long-term capital gain.

The Jobs Growth and Tax ReliefReconciliation Act of 2003 (JGTRRA), signed into law by President George W.Bush, was a significant legislation in recent tax history. As the tax rates on capital gains anddividends are reduced to a historical low of 15%, U.S. stock prices haveincreased and the cost of equity capital declined after its passage. In contrast to the dividends and capital gainsthat receive preferential tax rates under JGTRRA, yields from U.S. Treasurybill remain tax-disadvantaged as ordinary income at a top marginal rate of 35%.Using an event study approach based ontwo years of Treasury yield observations, the author examines Treasury yield reactionsto major legislative events surrounding the passage of JGTRRA. The result suggests that a tax policyintentionally favoring dividends and capital gains over ordinary income may unintentionallypush up yields in the Treasury bill market, thereby affecting the cost ofgovernment borrowing.

The taxation of bitcoins and similar cryptoassets is of immense economic importance to the individual taxpayer and to society as a whole. In recent years, they have effectuated a number of tax law issues in Denmark. In Norway, Sweden, and Denmark, the taxation of bitcoins and similar cryptoassets is based on the general rules of tax law. This article contains a comparative analysis of the three Scandinavian countries’ tax treatment of gains and losses on them. The analysis shows that the Norwegian and Swedish rules that have been significantly changed and modernized do not at all present the same challenges as the Danish rules. In Denmark, there is need for uniformity, predictability, and clarity to be introduced into the taxation rules. Therefore, the article also provides some reflections how to change the Danish tax legislation. Bitcoins, cryptocurrencies, cryptoassets, capital gains taxation, Danish income tax, Norwegian income tax, Swedish income tax, speculation taxation

The European Merger Directive aims to take away the tax problems that are related to absorption or division of companies established in the Member States and provides for a common system of deferral for taxation of capital gains and tax-free reserves. Although Belgium adopted parts of the Merger Directive in its domestic tax legislation in 1991, some provisions were notably absent. However, new legislation to complete the implementation of the Merger Directive has been published in the Belgian Official Gazette on 12 January 2009, which opens new opportunities for cross-border reorganizations involving a Belgian company. The new legislation covers all the transactions included in the Merger Directive, that is, legal merger, legal division, partial division, transfer of assets (e.g., contribution of a branch of activities or a universality of goods) in a cross-border context as well as an exchange of shares and transfer of the registered office of an SE and an SCE. Additionally, the new legislation also aims to, for example, implement full tax neutrality for purely domestic parent-subsidiary mergers by taking away or amending certain elements that prohibited a complete tax neutral transaction.

The article describes the impact of the decision of the European Court of Justice 'National Grid Indus' on Italian rules regarding exit taxation. The former Italian legislation prescribed the immediate taxation of unrealized capital gains, except if a Permanent Establishment (PE) is maintained in Italy, without distinguishing between the establishing of the amount of taxes and their recovery. In the meantime, the European Commission opened an infringement procedure against Italy with regard to the rules on exit tax. In January 2012, such rules have been modified in compliance with the principles established in National Grid Indus, allowing Member States to tax corporations on latent capital gains at the time of the transfer of the place of effective management to another Member State, but deferring the collection until the actual realization of the assets. This change carries out a series of problematic aspects concerning the scope of application of the new provision with regard to the transfer of permanent establishments of foreign enterprises in Italy, the tax basis of the assets transferred and, in particular, the interaction with the Merger Directive.

[Purpose]In this study, we examined the issues surrounding income taxation in relation to short selling and the stock lending transactions associated with it. Additionally, we proposed essential supplementary institutional measures. [Methodology]To achieve this, we scrutinized relevant precedents and interpretations in Korea, and consulted discussions and legislation in the United States and Japan. [Findings]The topics addressed in this study, along with the proposed measures for income taxation purposes, can be summarized in the following two points. [Implications]Firstly, during stock lending transactions, a formal transfer of ownership occurs. A question arises as to whether capital gains should be taxed following such a formal transfer of ownership. While administrative interpretation asserts no taxation, judicial precedent stipulates that transfer tax is imposed upon the transfer of legal ownership. In cases of qualified loan transactions where economic risks and rewards are not transferred, it is economically prudent not to tax capital gains, even if formal ownership is transferred. A similar issue existed in the United States and was resolved through legislation. Secondly, there is the matter of taxing investors on gains and losses from short selling. Under Korea’s income tax law, which adopts an enumerative method, gains and losses from short selling are not subject to taxation. Moreover, it is not included in the financial investment income tax, scheduled for implementation from 2025 following a postponement. Legislative supplementation is necessary, and given that short selling differs from spot investment in stocks and shares similar characteristics with stock derivatives, it seems fitting to categorize it under the basic deduction group of 2.5 million won. In short selling, when borrowed stocks are returned and the short selling is concluded according to the open transaction doctrine, gains and losses are confirmed, and the time for taxation arrives.

Australian legislation has recently undergone further developments which affect non- residents investing in Australian petroleum projects. The comments in this paper reflect our understanding of the law at November 1988.These legislative developments have occurred in foreign investment rules and primary tax areas such as the thin capitalisation and debt creation rules for nonresident investors, Australian capital gains tax including the new involuntary roll- over provisions, the Australian dividend imputation system, and secondary taxes such as state royalties and excises and petroleum resource rent tax.The purpose of this paper is to analyse some of the recent legislative developments from the viewpoint of a non- resident investing in Australian petroleum projects. Changes in most cases are incorporated in complex legislation, and full and proper consideration of the changes is warranted for taxpayers both to comply with the law and maximise shareholders' financial returns.

Purpose In Portugal, between 1989 and 2010, capital gains from corporate shares were exempted, while gains from other instruments, like limited liability companies (LLC) equity stakes, were taxed. Inevitably, this non-neutral tax treatment originated a notorious tax arbitrage, consisting in the transformation of the legal status of a LLC into a corporation, the subsequent share sale and tax exemption. In tax litigation, many arbitration rulings were delivered, with widely divergent decisions. The purpose of this paper, using a blend of the legal research method and case analysis, is to discuss three research questions. Should the general anti-abuse clause (GAAC) be applied to this tax planning operation? Why the divergence in arbitration rulings? Is this anomalous arbitration outcome because of the wording the GAAC and its complexity or, contrarily, does it emerge from the disconnection between the set of rules governing capital gains taxation and the legislative intent that is behind such rules? Design/methodology/approach The methodology used in this paper is based on a mix of the legal research method and case analysis. In the case of legal research, a hermeneutic approach – meaning that documents, texts and their interpretation can produce important fruits to the development of the field – is a tested and fruitful approach. Besides being a hermeneutic discipline, it is an argumentative one. By exposing arguments that confirm or deny particular solutions, legal research (e.g. in criminal, business or administrative law) can influence better legislative choices by political actors. Advantages of case analysis include lessons learned from observation. The author discusses if the application of the GAAC to an arrangement that originated a tax exemption can be validated by the usual interpretative lines that doctrine sustains should be observed when a GAAC is used to void legal schemes. The pros and cons of tax arbitration are also highlighted. Findings The conclusion of this paper is that the GAAC is not the crux of the problem. Instead, a contradictory or, at least, disconnected relation between the expressed intent of legislators and the wording of capital gains tax clauses is, in our view, the main reason for such divergent arbitration rulings on the same issue. Practical implications The author believes that the paper is a contribution to the literature, given the global use of anti-abuse clauses and the interpretative complexities they originate. Moreover, the analysis in this paper is carried out in a legal setting where a disconnection is detectable between the expressed legislative intent and the legal drafting of personal income tax rules related to the exemption of capital gains. Studying the complexity added by this feature of the Portuguese legislation serves as a reminder of the importance of careful and well-crafted wording to achieve consistent court outcomes. Originality/value The paper has value to governments, tax authorities and tax managers, given the ever-increasing use of anti-abuse clauses in many countries, and the potential use of arbitration in similar settings.

In late 1999, the German government made a surprise announcement that it would repeal the large and long-standing capital gains tax on sales of corporate crossholdings effective in 2002. The repeal has been hailed as a revolutionary step toward breaking up the extensive web of crossholdings among German companies. The lock-in effect from the large corporate capital gains tax was said to act as a barrier to efficient acquisition and divestiture of German firms and divisions. Many observers predicted that once the lock-in effect was removed, Germany would experience a flurry of acquisition and divestiture activity. Several other industrialized countries were poised to follow suit, with similar proposals pending in France, Japan, and the United Kingdom. This paper provides evidence of the economic impact of the repeal by examining its effect on the market values of German firms. While event studies of tax legislation can be difficult, our study is aided by the fact that the repeal was both a surprise and was announced separately from other tax reform proposals. In addition, we provide cross-sectional evidence on the economic magnitude of the repeal, assess the likely beneficiaries from the repeal, and predict which sectors are most likely to experience a surge in acquisition and divestiture activity following the repeal. Our results suggest that the economic effects are highly concentrated. We find a positive association between firms' event period abnormal returns and the extent of their crossholdings, consistent with taxes acting as a barrier to efficient allocation of ownership. However, the reaction is limited to the six largest banks and insurers and their extensive minority holdings in industrial firms. These six large firms have a combined market capitalization equal to 22 percent of all 394 firms in this study. We also find evidence of a positive stock price response to the announcement for industrial companies held by these financial firms, consistent with shareholders in those firms benefiting from the likely reduction in investor-level tax burdens and expected increased efficiency following the tax law change.

Abstract In view of the fact that technological progress is in a constant state of change, current research efforts are directed towards blockchain technology and cryptocurrencies. Starting with the description of the way blockchain technology operates, the notions of decentralisation, proof-of-work consensus, and practical immutability are explained. Further, the article examines the possibility of using cryptocurrency in order to pay remuneration, realise partial non-cash payment of remuneration or grant an award to an employee. This article presents evidence that demonstrates that remuneration in the framework of the employment relationship in Poland cannot be paid in cryptocurrency, which contributes to the performance of the protective function of labour law. The article concludes that a collective labour agreement could include a clause allowing the employer to realise partial non-cash payment of remuneration in cryptocurrency. Similar provisions could be introduced in labour law, but the Polish legislator has never adopted such a measure. The authors highlight, however, that an award can be paid in cryptocurrency even in the full amount. Next, the authors research the new tax regulations in force in Poland since 1 January 2019 and explain why it is conceptually more convincing to classify revenues from cryptocurrency trading as revenues from money capital and revenues from capital gains than as property rights. The article presents a definition of the disposal for valuable consideration of a virtual currency. The purpose of this article is also to study how high is the income tax on income earned from the disposal for valuable consideration of virtual currencies. Moreover, an overview of the legislation related to tax-deductible expenses is provided. Finally, some reflections on the cryptocurrency trading in the context of the pursuit of an economic activity are given. The review especially highlights the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and the judgment of the CJEU of 22 October 2015 (Skatteverket v. David Hedqvist [2015], case C-264/14), which has impacted the approach to the VAT problem in Poland.

This article first introduces the statistics of losses of the State Budget of Ukraine, which in 2019 were caused by violations of the statutory procedure for payment of taxes, fees and other mandatory payments in Ukraine, thus focusing on the relevant issues. The problem of tax evasion using offshore jurisdictions, or so-called offshore countries, is considered separately. Emphasis is placed on the destructive consequences arising from this illegal activity for the national economy of Ukraine. In addition, the authors turn to the analysis of world experience in combating the relevant negative phenomenon. Particular attention in this regard is paid to the method of promoting compliance with the procedure for payment of taxes, fees and other tax payments in the United Kingdom of Great Britain and Northern Ireland. In particular, an approach such as the establishment in the United Kingdom of criminal liability for significant tax evasion by persons who directly or indirectly own offshore income, assets, consequences of offshore business activities, or anything that has a result similar to arising from offshore income, assets or offshore business activities. This type of penalty was introduced in 2017 due to the entry into force of Section 166 of the 2016 Finance Act in the United Kingdom. Criminal liability under this section arises for acts related to offshore activities and consists of: failure to notify the supervisory authority of income tax or capital gains tax, breach by the payer of the obligation to file a declaration, filing a declaration containing false information, or breach of due the amount of payment of the corresponding mandatory payment. At the end of the article, the authors proposed to amend the Criminal Code of Ukraine, which will provide for the introduction of a similar rule in Ukrainian law.

In this article, the author examines the Australian legislation concerning the taxation of capital gains derived by foreign beneficiaries of Australian trusts. He challenges the Commissioner of Taxation’s approach of taxing capital gains derived by an Australian–resident trust from assets located abroad, which have no connection with Australia, and where the gains are distributed to non-resident beneficiaries, as contrary to the intent of the legislation. To resolve the situation, the article advocates further case law to give guidance on the availability of relief from capital gains tax for foreign beneficiaries of Australian trusts.

In this article, the author analyses the effect of recent international tax legislation and case law developments on Australia’s competitiveness in attracting international investment. Topics discussed include Australia’s controlled foreign corporation regime, capital gains tax exemption for non-residents, conduit foreign income, foreign losses, tax credits and anti-avoidance cases.

This article reviews a decision of the UK First-tier Tribunal concerning the issue whether discrimination by a state against its own non-resident national on the ground of nationality was precluded by EU law, the European Human Rights Convention or the Ireland-United Kingdom Income and Capital Gains Tax Treaty (1976). Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains (2 June 1976) (as amended through 1998), Treaties IBFD.

In this article, the authors explain the provisions in Thailand’s tax law that are designed to encourage foreign investment and economic development in the country. These include the participation exemption applicable to the taxation of foreign sourced dividends and capital gains under the holding company regime, and the international headquarters regime. The article addresses tax planning structures, which benefit from Thailand’s domestic law and tax treaties. The authors also discuss the current state of transfer pricing, adoption of BEPS initiatives and anti-avoidance rules in Thailand’s legislation.

This article analyses the rules governing the calculation of the effective tax rate for the purposes of the GloBE Rules and Pillar Two. The author examines possible discrepancies with other Member States’ legislation, including Italy’s, and suggests possible amendments. It starts with an analysis of the Italian regime, devoting particular attention to a comparison with the Globe Rules regarding the treatment of income derived from dividends and capital gains. The aim of this comparison is to provide an example of the possible difficulties that national legislators will face in promoting the forthcoming reforms.

Abstract Welfare is traditionally understood as social security decommodifying labour markets or as social investment policies. In the domain of housing, however, welfare for homeowners is largely hidden in the tax codes’ fiscal exemptions. Based on a content analysis of legislation, this article introduces a novel yearly database of 37 countries between 1901 and 2020 to uncover the “hidden welfare state” of taxes on imputed rent, deductibility of mortgage payments, housing capital gains tax, and value-added tax on newly built dwellings. Summary indices of homeownership attractiveness and neutrality of the tax code show that fiscal homeownership policies have been in decline until the 1980s and risen ever since. They are in place where finance is liberally and labour restrictively regulated. Contrary to the classical welfare state, they are not associated with an economic logic of industrialism or left-wing governments. They rather are an alternative to rent regulation used by Common-law jurisdictions or smaller countries. As welfare for property owners, the logic of fiscal homeownership welfare diverges from the classical welfare for the labouring classes.

This overview highlights the Commission’s (i) proposal to reduce the VAT rate on COVID-19 vaccines and diagnostic medical devices; (ii) requests to Belgium, Luxembourg and France to amend, respectively, their rules on the exemption of savings income, inheritance tax reduction, taxation of interest received by individuals and capital gains of non-resident investment funds; (iii) reasoned opinion to Spain requesting the implementation of ATAD anti-hybrid provisions; (iv) approval of the Italian tax scheme to support agricultural cooperatives affected by the COVID-19 pandemic; (v) adoption of the 2021 Work Programme; (vi) decision to extend VAT and customs duties relief for importation of medical equipment; (vii) referrals to the ECJ of Greece, Belgium and Netherlands regarding, respectively, the tax treatment of foreign business losses, the deductibility of alimony payments and cross-border pension rules; and (viii) closure of infringement procedures against certain Member States regarding the conformity of their legislation with EU law.

This overview highlights the Commission’s (i) plan to adopt a Taxation Package in June 2023; (ii) presentation of the Green Deal Industrial Plan (iii) publication of the public consultation report on the initiative to tackle the role of enablers of tax evasion and aggressive tax planning in the European Union; (iv) urging of Spain to properly implement the EU Tax Dispute Resolution Mechanism (v) call on 14 Member States to fully transpose DAC7 into national law; (vi) letter of formal notice to Italy for failure to comply with EU rules on social security coordination; (vii) action against Malta regarding vehicle taxation legislation; (viii) closing of the infringement procedure against Greece regarding non-communication of ATAD measures implementing rules on hybrid mismatches, (ix) closing of the infringement procedure against Luxembourg regarding inheritance tax reduction for company shares (x) closing of the infringement procedure against France regarding discriminatory taxation of EU-sourced dividends; (xi) closing of the infringement procedure against Germany regarding rules on taxation of unrealized capital gains; (xii) closing of the infringement procedure against Austria regarding rules on indexation of family benefits; (xiii) closing of the infringement procedure against Romania regarding refund of car registration taxes collected in breach of EU law; (xiv) closing of infringement procedure against Portugal regarding registration tax of second-hand vehicles; and (xv) approval of amendment and prolongation of German risk finance scheme to support small, young and innovative companies.

This article discusses the federal income tax consequences of a buyer's assumption of contingent liabilities in a taxable sale of the assets of a trade or business. Although judicial precedent remains scarce, several articles written over the past few years have considered this issue. Nevertheless, the matter remains unsettled both as to the theoretically correct result and, perhaps, more importantly, as to what is required to achieve a workable solution.Since the Treasury apparently considers the treatment of contingent liabilities to be ripe for a regulation project, my hope here is to clarify the issues and to present the options in a comprehensive and orderly manner so as to facilitate a decision. Although I do not describe current law in detail, I indicate where the possible approaches might differ from existing precedent and, therefore, to what extent it might be necessary to seek legislation. A solution is made more difficult, in some circumstances, by the reintroduction of a substantial difference between the rates applicable to ordinary income and capital gains.

IntroductionDespite claims that the importance of distance has been reduced due to technological and communications improvements (Cairncross; Friedman; O’Brien), the ‘power of place’ still resonates, often intensifying the role of geography (Christopherson et al.; Morgan; Pratt; Scott and Storper). Within the film industry, there has been a decentralisation of production from Hollywood, but there remains a spatial logic which has preferenced particular centres, such as Toronto, Vancouver, Sydney and Prague often led by a combination of incentives (Christopherson and Storper; Goldsmith and O’Regan; Goldsmith et al.; Miller et al.; Mould). The emergence of high end television, television programming for which the production budget is more than £1 million per television hour, has presented new opportunities for screen hubs sharing a very similar value chain to the film industry (OlsbergSPI with Nordicity).In recent years, interventions have proliferated with the aim of capitalising on the decentralisation of certain activities in order to attract international screen industries production and embed it within local hubs. Tools for building capacity and expertise have proliferated, including support for studio complex facilities, infrastructural investments, tax breaks and other economic incentives (Cucco; Goldsmith and O’Regan; Jensen; Goldsmith et al.; McDonald; Miller et al.; Mould). Yet experience tells us that these will not succeed everywhere. There is a need for a better understanding of both the capacity for places to build a distinctive and competitive advantage within a highly globalised landscape and the relative merits of alternative interventions designed to generate a sustainable production base.This article first sets out the rationale for the appetite identified in the screen industries for co-location, or clustering and concentration in a tightly drawn physical area, in global hubs of production. It goes on to explore the latest trends of decentralisation and examines the upturn in interventions aimed at attracting mobile screen industries capital and labour. Finally it introduces the Scottish screen industries and explores some of the ways in which Scotland has sought to position itself as a recipient of screen industries activity. The paper identifies some key gaps in infrastructure, most notably a studio, and calls for closer examination of the essential ingredients of, and possible interventions needed for, a vibrant and sustainable industry.A Compulsion for ProximityIt has been argued that particular spatial and place-based factors are central to the development and organisation of the screen industries. The film and television sector, the particular focus of this article, exhibit an extraordinarily high degree of spatial agglomeration, especially favouring centres with global status. It is worth noting that the computer games sector, not explored in this article, slightly diverges from this trend displaying more spatial patterns of decentralisation (Vallance), although key physical hubs of activity have been identified (Champion). Creative products often possess a cachet that is directly associated with their point of origin, for example fashion from Paris, films from Hollywood and country music from Nashville – although it can also be acknowledged that these are often strategic commercial constructions (Pecknold). The place of production represents a unique component of the final product as well as an authentication of substantive and symbolic quality (Scott, “Creative cities”). Place can act as part of a brand or image for creative industries, often reinforcing the advantage of being based in particular centres of production.Very localised historical, cultural, social and physical factors may also influence the success of creative production in particular places. Place-based factors relating to the built environment, including cheap space, public-sector support framework, connectivity, local identity, institutional environment and availability of amenities, are seen as possible influences in the locational choices of creative industry firms (see, for example, Drake; Helbrecht; Hutton; Leadbeater and Oakley; Markusen).Employment trends are notoriously difficult to measure in the screen industries (Christopherson, “Hollywood in decline?”), but the sector does contain large numbers of very small firms and freelancers. This allows them to be flexible but poses certain problems that can be somewhat offset by co-location. The findings of Antcliff et al.’s study of workers in the audiovisual industry in the UK suggested that individuals sought to reconstruct stable employment relations through their involvement in and use of networks. The trust and reciprocity engendered by stable networks, built up over time, were used to offset the risk associated with the erosion of stable employment. These findings are echoed by a study of TV content production in two media regions in Germany by Sydow and Staber who found that, although firms come together to work on particular projects, typically their business relations extend for a much longer period than this. Commonly, firms and individuals who have worked together previously will reassemble for further project work aided by their past experiences and expectations.Co-location allows the development of shared structures: language, technical attitudes, interpretative schemes and ‘communities of practice’ (Bathelt, et al.). Grabher describes this process as ‘hanging out’. Deep local pools of creative and skilled labour are advantageous both to firms and employees (Reimer et al.) by allowing flexibility, developing networks and offsetting risk (Banks et al.; Scott, “Global City Regions”). For example in Cook and Pandit’s study comparing the broadcasting industry in three city-regions, London was found to be hugely advantaged by its unrivalled talent pool, high financial rewards and prestigious projects. As Barnes and Hutton assert in relation to the wider creative industries, “if place matters, it matters most to them” (1251). This is certainly true for the screen industries and their spatial logic points towards a compulsion for proximity in large global hubs.Decentralisation and ‘Sticky’ PlacesDespite the attraction of global production hubs, there has been a decentralisation of screen industries from key centres, starting with the film industry and the vertical disintegration of Hollywood studios (Christopherson and Storper). There are instances of ‘runaway production’ from the 1920s onwards with around 40 per cent of all features being accounted for by offshore production in 1960 (Miller et al., 133). This trend has been increasing significantly in the last 20 years, leading to the genesis of new hubs of screen activity such as Toronto, Vancouver, Sydney and Prague (Christopherson, “Project work in context”; Goldsmith et al.; Mould; Miller et al.; Szczepanik). This development has been prompted by a multiplicity of reasons including favourable currency value differentials and economic incentives. Subsidies and tax breaks have been offered to secure international productions with most countries demanding that, in order to qualify for tax relief, productions have to spend a certain amount of their budget within the local economy, employ local crew and use domestic creative talent (Hill). Extensive infrastructure has been developed including studio complexes to attempt to lure productions with the advantage of a full service offering (Goldsmith and O’Regan).Internationally, Canada has been the greatest beneficiary of ‘runaway production’ with a state-led enactment of generous film incentives since the late 1990s (McDonald). Vancouver and Toronto are the busiest locations for North American Screen production after Los Angeles and New York, due to exchange rates and tax rebates on labour costs (Miller et al., 141). 80% of Vancouver’s production is attributable to runaway production (Jensen, 27) and the city is considered by some to have crossed a threshold as:It now possesses sufficient depth and breadth of talent to undertake the full array of pre-production, production and post-production services for the delivery of major motion pictures and TV programmes. (Barnes and Coe, 19)Similarly, Toronto is considered to have established a “comprehensive set of horizontal and vertical media capabilities” to ensure its status as a “full function media centre” (Davis, 98). These cities have successfully engaged in entrepreneurial activity to attract production (Christopherson, “Project Work in Context”) and in Vancouver the proactive role of provincial government and labour unions are, in part, credited with its success (Barnes and Coe). Studio-complex infrastructure has also been used to lure global productions, with Toronto, Melbourne and Sydney all being seen as key examples of where such developments have been used as a strategic priority to take local production capacity to the next level (Goldsmith and O’Regan).Studies which provide a historiography of the development of screen-industry hubs emphasise a complex interplay of social, cultural and physical conditions. In the complex and global flows of the screen industries, ‘sticky’ hubs have emerged with the ability to attract and retain capital and skilled labour. Despite being principally organised to attract international production, most studio complexes, especially those outside of global centres need to have a strong relationship to local or national film and television production to ensure the sustainability and depth of the labour pool (Goldsmith and O’Regan, 2003). Many have a broadcaster on site as well as a range of companies with a media orientation and training facilities (Goldsmith and O’Regan, 2003; Picard, 2008). The emergence of film studio complexes in the Australian Gold Coast and Vancouver was accompanied by an increasing role for television production and this multi-purpose nature was important for the continuity of production.Fostering a strong community of below the line workers, such as set designers, locations managers, make-up artists and props manufacturers, can also be a clear advantage in attracting international productions. For example at Cinecitta in Italy, the expertise of set designers and experienced crews in the Barrandov Studios of Prague are regarded as major selling points of the studio complexes there (Goldsmith and O’Regan; Miller et al.; Szczepanik). Natural and built environments are also considered very important for film and television firms and it is a useful advantage for capturing international production when cities can double for other locations as in the cases of Toronto, Vancouver, Prague for example (Evans; Goldsmith and O’Regan; Szczepanik). Toronto, for instance, has doubled for New York in over 100 films and with regard to television Due South’s (1994-1998) use of Toronto as Chicago was estimated to have saved 40 per cent in costs (Miller et al., 141).The Scottish Screen Industries Within mobile flows of capital and labour, Scotland has sought to position itself as a recipient of screen industries activity through multiple interventions, including investment in institutional frameworks, direct and indirect economic subsidies and the development of physical infrastructure. Traditionally creative industry activity in the UK has been concentrated in London and the South East which together account for 43% of the creative economy workforce (Bakhshi et al.). In order, in part to redress this imbalance and more generally to encourage the attraction and retention of international production a range of policies have been introduced focused on the screen industries. A revised Film Tax Relief was introduced in 2007 to encourage inward investment and prevent offshoring of indigenous production, and this has since been extended to high-end television, animation and children’s programming. Broadcasting has also experienced a push for decentralisation led by public funding with a responsibility to be regionally representative. The BBC (“BBC Annual Report and Accounts 2014/15”) is currently exceeding its target of 50% network spend outside London by 2016, with 17% spent in Scotland, Wales and Northern Ireland. Channel 4 has similarly committed to commission at least 9% of its original spend from the nations by 2020. Studios have been also developed across the UK including at Roath Lock (Cardiff), Titanic Studios (Belfast), MedicaCity (Salford) and The Sharp Project (Manchester).The creative industries have been identified as one of seven growth sectors for Scotland by the government (Scottish Government). In 2010, the film and video sector employed 3,500 people and contributed £120 million GVA and £120 million adjusted GVA to the economy and the radio and TV sector employed 3,500 people and contributed £50 million GVA and £400 million adjusted GVA (The Scottish Parliament). Beyond the direct economic benefits of sectors, the on-screen representation of Scotland has been claimed to boost visitor numbers to the country (EKOS) and high profile international film productions have been attracted including Skyfall (2012) and WWZ (2013).Scotland has historically attracted international film and TV productions due to its natural locations (VisitScotland) and on average, between 2009-2014, six big budget films a year used Scottish locations both urban and rural (BOP Consulting, 2014). In all, a total of £20 million was generated by film-making in Glasgow during 2011 (Balkind) with WWZ (2013) and Cloud Atlas (2013), representing Philadelphia and San Francisco respectively, as well as doubling for Edinburgh for the recent acclaimed Scottish films Filth (2013) and Sunshine on Leith (2013). Sanson (80) asserts that the use of the city as a site for international productions not only brings in direct revenue from production money but also promotes the city as a “fashionable place to live, work and visit. Creativity makes the city both profitable and ‘cool’”.Nonetheless, issues persist and it has been suggested that Scotland lacks a stable and sustainable film industry, with low indigenous production levels and variable success from year to year in attracting inward investment (BOP Consulting). With regard to crew, problems with an insufficient production base have been identified as an issue in maintaining a pipeline of skills (BOP Consulting). Developing ‘talent’ is a central aspect of the Scottish Government’s Strategy for the Creative Industries, yet there remains the core challenge of retaining skills and encouraging new talent into the industry (BOP Consulting).With regard to film, a lack of substantial funding incentives and the absence of a studio have been identified as a key concern for the sector. For example, within the film industry the majority of inward investment filming in Scotland is location work as it lacks the studio facilities that would enable it to sustain a big-budget production in its entirety (BOP Consulting). The absence of such infrastructure has been seen as contributing to a drain of Scottish talent from these industries to other areas and countries where there is a more vibrant sector (BOP Consulting). The loss of Scottish talent to Northern Ireland was attributed to the longevity of the work being provided by Games of Thrones (2011-) now having completed its six series at the Titanic Studios in Belfast (EKOS) although this may have been stemmed somewhat recently with the attraction of US high-end TV series Outlander (2014-) which has been based at Wardpark in Cumbernauld since 2013.Television, both high-end production and local broadcasting, appears crucial to the sustainability of screen production in Scotland. Outlander has been estimated to contribute to Scotland’s production spend figures reaching a historic high of £45.8 million in 2014 (Creative Scotland ”Creative Scotland Screen Strategy Update”). The arrival of the program has almost doubled production spend in Scotland, offering the chance for increased stability for screen industries workers. Qualifying for UK High-End Television Tax Relief, Outlander has engaged a crew of approximately 300 across props, filming and set build, and cast over 2,000 supporting artist roles from within Scotland and the UK.Long running drama, in particular, offers key opportunities for both those cutting their teeth in the screen industries and also by providing more consistent and longer-term employment to existing workers. BBC television soap River City (2002-) has been identified as a key example of such an opportunity and the programme has been credited with providing a springboard for developing the skills of local actors, writers and production crew (Hibberd). This kind of pipeline of production is critical given the work patterns of the sector. According to Creative Skillset, of the 4,000 people in Scotland are employed in the film and television industries, 40% of television workers are freelance and 90% of film production work in freelance (EKOS).In an attempt to address skills gaps, the Outlander Trainee Placement Scheme has been devised in collaboration with Creative Scotland and Creative Skillset. During filming of Season One, thirty-eight trainees were supported across a range of production and craft roles, followed by a further twenty-five in Season Two. Encouragingly Outlander, and the books it is based on, is set in Scotland so the authenticity of place has played a strong component in the decision to locate production there. Producer David Brown began his career on Bill Forsyth films Gregory’s Girl (1981), Local Hero (1983) and Comfort and Joy (1984) and has a strong existing relationship to Scotland. He has been very vocal in his support for the trainee program, contending that “training is the future of our industry and we at Outlander see the growth of talent and opportunities as part of our mission here in Scotland” (“Outlander fast tracks next generation of skilled screen talent”).ConclusionsThis article has aimed to explore the relationship between place and the screen industries and, taking Scotland as its focus, has outlined a need to more closely examine the ways in which the sector can be supported. Despite the possible gains in terms of building a sustainable industry, the state-led funding of the global screen industries is contested. The use of tax breaks and incentives has been problematised and critiques range from use of public funding to attract footloose media industries to the increasingly zero sum game of competition between competing places (Morawetz; McDonald). In relation to broadcasting, there have been critiques of a ‘lift and shift’ approach to policy in the UK, with TV production companies moving to the nations and regions temporarily to meet the quota and leaving once a production has finished (House of Commons). Further to this, issues have been raised regarding how far such interventions can seed and develop a rich production ecology that offers opportunities for indigenous talent (Christopherson and Rightor).Nonetheless recent success for the screen industries in Scotland can, at least in part, be attributed to interventions including increased decentralisation of broadcasting and the high-end television tax incentives. This article has identified gaps in infrastructure which continue to stymie growth and have led to production drain to other centres. 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