LIBERAL Vannin MHK Kate Beecroft questioned CinemaNX’s accounting practices - telling Tynwald: ‘It’s seem quite bizarre to me.’
She had quizzed Treasury Minister Eddie Teare over an apparent discrepancy in a dividend paid by one CinemaNX subsidiary and the amount received by a second subsidiary.
Mr Teare explained the issue related to the receipt of film tax credits. CinemaNX Productions One Ltd’s accounts to November 30, 2010, showed a tax credit claim of £585,351.
But he said that following negotiations with Her Majesty’s Revenue and Customs in the UK. the amount of the claim was reduced by to £531,701. This agreed claim was received in two tranches of £505,526 for the period to November 30 2010 – which corresponded to the dividend received in the accounts of the second subsidy CinemaNX Films One – and a further £26,175 for the following year.
Mrs Beecroft (Onchan) asked whether standard accounting practices applied. ‘It seems quite bizarre to me,’ she said.
Mr Teare said she needed to look at the commulated group accounts. ‘Are these available to the public?’ asked Mrs Beecroft.
No, said the Minister, as this was a private limited company. ‘How can he refer me to something which is not publicly available?’ the Lib Van MHK asked.