New Zealand Screen Production Grant and Post, Digital and Visual Effects Production Grant International Productions Application for Final Certificate (incorporating the Significant Economic Benefits Test) This application form should be read in conjunction with the NZSPG Criteria for International Productions dated 1 August 2015. Capitalised terms used in this application form have the definitions set out in the criteria. This application form has five sections: Section 1 – Applicant Information Section 2 – Production Information Section 3 – QNZPE Section 4 – Statutory Declaration Section 5 – List of Required Documents Auditor’s Report Applicants must complete all Sections. Applicants which have received provisional certification for the 5% Uplift should refer to their Memorandum of Understanding for details of their reporting requirements in relation to the 5% Uplift. Bundling: A separate application form must be completed for each production within a bundle. The applicant for each production must be the same entity or must be related to each other applicant by having 50% or more shareholding in common, or each production must have the same New Zealand Creative Producer. Submitting your application Please send THREE electronic copies of your application by CD, DVD or USB stick, including all relevant attachments, to: Incentives Executive New Zealand Film Commission PO Box 11 546 Level 3, 119 Ghuznee Street Wellington 6011 Phone: (04) 382 7680 Confidentiality Information that you supply to the NZFC may be provided to the NZSPG Panel, the SEB Verification Panel, the IRD and independent consultants where necessary during the application and approval process. The NZFC will use reasonable efforts to maintain the confidentiality of the information provided by you. The NZFC notes however that it is subject to various disclosure requirements, for example under the Official Information Act 1982, and shall not be liable for any disclosure it believes (acting reasonably) it is required to make. You should clearly indicate those parts of the application that you regard as commercially sensitive and confidential. In processing a request under the Official Information Act 1982, the NZFC will consult with you prior to a decision on release of the documents, but you should be aware that your veto will not automatically result in the information being withheld by the NZFC or other government department or agency. Statistical information provided in Sections 1 and 2 of this application may be used by New Zealand Government ministries, departments and agencies involved in the screen production industry. These ministries, departments and agencies will usually comprise: the NZFC, the Ministry for Culture and Heritage, the IRD, the Ministry of Business, Innovation and Employment and Statistics New Zealand. NZSPG Final Application August 2015 – International Productions Page 1 of 13 Section 1 Applicant Information Full name of applicant entity (Registered name): Registration number: Registered address: Business/mailing address: New Zealand GST Number (if any): Contact person: Business phone: Role of contact person: Mobile phone: Email: The applicant may be required to complete an online survey about their experience of making a screen production in New Zealand. Please provide details of the person to whom the survey should be sent: Name: Role: Email Address: Special Purpose Vehicle Is the applicant a special purpose vehicle established principally in relation to making the production? YES NO If NO, please indicate which exception under clause 11.2 of the criteria applies: Series Repurposing Bundling PDV Grant Exception 1 PDV Grant Exception 2 Please note that an applicant must have its own GST and payroll registration numbers and its own bank account. The applicant’s GST and payroll returns must not be grouped with any other entity for tax purposes. If you are relying on PDV Grant Exception 1 or 2 then you must have obtained a waiver of the special purpose vehicle requirement from the NZFC in accordance with clause 11.2(d) or 11.2(e) of the criteria. Residency Status Names of applicant directors or partners Citizenship of directors or partners NZSPG Final Application August 2015 – International Productions Country of permanent residence Address of directors or partners Page 2 of 13 Shareholders in the applicant company or general partner Citizenship of shareholders Country of permanent residence % beneficial interest in the company or partnership Responsible Entity Was the applicant the entity responsible for all activities involved in making the production in New Zealand or, for the PDV Grant, all PDV Activity on the production in New Zealand? YES NO Has the applicant taken over responsibility for making the screen production (or undertaking the PDV work) from another production entity? YES NO If YES, the previous entity (ies) should be listed below with the relevant legal agreement confirming the transfer of responsibility also included as an attachment. (Please attach details on a separate sheet if there is insufficient space provided below) Registered name: Registered address: Registration number: Note: The audited expenditure statement must indicate which amounts relate to expenditure of a previous company (ies). NZSPG Final Application August 2015 – International Productions Page 3 of 13 Section 2 Production Information Title of Production: Synopsis Provide a brief synopsis of the production: If the production is a series, please supply a synopsis of each episode. Continue on a separate sheet if necessary. Note: If the production has NOT been released to the public or international marketing for its imminent release has not occurred, the NZFC may require a DVD of the screen production or a dated selection of DVD footage. 1. Format Feature film If a feature film, on what platform will it be first released? NB: if you are shooting more than one film simultaneously or concurrently, please see clause 7.3 of the criteria. Television or other non-feature film (please specify below) Television drama (single episode) Television documentary/factual/reality (single episode) Television drama (series) Television documentary/factual/reality (series) Other Please describe: If a television or other non-feature film production, on what platform will it be first released? Length of Production What is the total running length of the completed production (in minutes)? If a series, what is the total number of episodes? Excluded Formats Does the production fit into one of the following categories? YES an advertising programme or commercial a discussion programme, current affairs, news, a panel programme or a programme of a like nature pornography a training programme an interactive digital game (other than transmedia content as per clause 16.2(b)(iv) of the criteria) a production of a public event, including a sports event for television or other non-feature film productions only, a programme principally made for the New Zealand market NO Note: If the production fits into one of the above categories then it is not eligible for an International Grant. NZSPG Final Application August 2015 – International Productions Page 4 of 13 Dates – Production Date of first day of official pre-production: Date of commencement of Principal Photography in New Zealand: Date of commencement of Principal Photography overseas: For PDV Productions, date of commencement of PDV Activity in New Zealand: Date of completion of Principal Photography (not necessary for PDV Grant application): Date of Completion of production (if not yet completed, then insert estimated date of Completion): Dates – QNZPE Date the applicant first incurred QNZPE: (this is the not the date of any prior development expenditure incurred by another entity) Date of completion of QNZPE: 2. Expenditure Threshold $15 million or more (for a feature film) $4 million or more (for a television or other non-feature film production) Interim $50 million or more Interim Bundle Final Bundle $30 million or more PDV Grant $500,000 or more 3. Other Grants and New Zealand Incentives Has the production received or applied for production funding from any NZ Government agency? YES NO Has the production received or applied for a New Zealand Grant, Large Budget Screen Production Grant or Screen Production Incentive Fund grant or for any tax incentives? YES NO YES NO If the answer is YES to either, then the production is not eligible for an International Grant. Has the production incurred any costs that were paid more than ten years prior to the start of Principal Photography or PDV Activity (historical costs)? If YES, then please specify what costs: Note: Historical costs cannot be claimed as QNZPE unless the NZSPG Panel approves such costs. Refer to clause 5 of the criteria for other excluded historical costs. NZSPG Final Application August 2015 – International Productions Page 5 of 13 4. Credit and Promotional Materials Please note that the applicant must provide the New Zealand Government with an on-screen end credit in the finished production. Please refer to clause 31 of the criteria. The applicant must also provide promotional materials to the NZFC in accordance with the Promotional Materials Schedule available on the NZFC website. Note: In exceptional circumstances, the NZFC may waive one or both of these requirements. If you cannot provide a credit and/or promotional materials and have not already received a waiver from the NZFC, please complete: Explain why a credit cannot be provided: Explain why promotional materials cannot be provided: 5. Compliance with New Zealand Immigration Law Has the applicant, to the best of its knowledge, complied with all applicable New Zealand immigration laws relating to the employment of non-resident cast and crew who worked on the screen production? YES NO NZSPG Final Application August 2015 – International Productions Page 6 of 13 Section 3 QNZPE GST: The International Grant is calculated in relation to amounts that are net of New Zealand Goods and Services Tax (GST). Therefore all figures in this application should be quoted net of GST. Non-accrual basis of expenditure To be QNZPE an expenditure item must have actually been incurred and spent by the applicant on the making of the production prior to the date the final application is submitted. 1. QNZPE Total expenditure NZD$ QNZPE NZD$ All costs claimed as QNZPE must be presented in an audited expenditure statement. All expenditure must be identified in New Zealand dollars. You can use the average monthly rates published by the IRD to convert any non-New Zealand dollars or you can apply the actual exchange rate on the date the cost was incurred. The expenditure statement must include details of: (a) (b) (c) Total expenditure Non-QNZPE QNZPE An example of an expenditure statement is shown at the end of this section. 2. General ledger The general ledger for the production must be provided and must, as a minimum, include the following details in relation to each cost: (a) date (b) description (c) amount of expenditure (d) details of each service provider/vendor (e) whether such expenditure is QNZPE or non-QNZPE (f) when the good or service or land was used in the making of the production (g) whether the expenditure is payroll, petty cash, accounts payable or a journal (h) date when or period of time over which the item was used on the production An example of a general ledger excerpt is shown at the end of this section. A final production cost report and a balance sheet (a trial balance is acceptable if a final is not available) must also be included with your final application. 3. Audit Please fill in the contact details for your auditor below. Name of auditor: Company name: Qualifications: Telephone: Email: NZSPG Final Application August 2015 – International Productions Page 7 of 13 4. Currency exchange All expenditure incurred in foreign currencies must be converted into New Zealand dollars either using the exchange rate on the day the transaction occurred, or if the exchange rate is not known the Inland Revenue’s average monthly exchange rates may be used. See www.ird.govt.nz. A schedule of all QNZPE in foreign currencies should be provided. 5. Non-arm’s length expenditure Please provide the name of all entities or personnel (as identified in the expenditure statement) who provided goods, services or land in making the production and who are associated with the applicant or any of its associate entities. Please also identify the type of goods, services or land provided and the amount paid for those goods, services or land by the applicant. Name of related entity or person Nature of goods, services or land supplied to the production Amount paid Continue on a separate sheet if necessary. Refer to clause 20 of the criteria for more information about the NZSPG Panel’s assessment of non-arm’s length expenditure. 6. Assets Did the applicant acquire any assets for use on the production in New Zealand? YES NO If YES, please either: (a) attach a schedule of depreciation in relation to those assets; or (b) if no assets have been retained at the date of this application, please attach a schedule providing information on the disposal of those assets, including date of sale and sale price. 7. Major supplier Does 75% or more of the QNZPE claimed in this application relate to goods or services provided by the same supplier/vendor? YES NO If YES, please attach a copy of the supplier/vendor agreement and copies of all invoices issued to the applicant by that supplier/vendor. NZSPG Final Application August 2015 – International Productions Page 8 of 13 General Ledger Example This is an example of a General Ledger. Different software packages may have a different layout. However, all packages need to have a free field to enable codes to be set up for the NZSPG requirements Please note that it is extremely important that a detailed description is included in the description field Account Number Development 1000 1000 1000 1000 1000 1000 1000 1000 Reference Number Date Cheque Invoice P/O Vendor/ Number Number Number Contractor Free Field Free Field Source 1 2 Code Description NonOrg Curr Amount QNZPE QN NN QN NN PN PG NG AN 1/12/2013 J Bloggs -LA-AK 24/12/2013 J Bloggs -LA-AK 1/12/-24/12 J Bloggs P Diem 1/12/2013 Air transfer Bloggs 1/12-7/12/2013 PA Scott Fee 1/12 -7/12/2013 B Mann Fee 3/12/2013 Ent Meal BM.JB 1/12-23/12 Accom J Bloggs NZ NZ NZ NZ NZ NZ NZ NZ QNZPE Where original currency is not NZD NonIRD Mid QNZPE QNZPE in Total Month NZD NZD QNZPE 0.8329 5001 5001 5002 5003 5004 5004 5005 5006 5/12/2013 999 2345 5/12/2013 999 2345 5/12/2013 PC1 PC1 6/12/2013 1000 LA1001 8/01/2013 1001 PR 8/01/2013 1001 PR 8/01/2013 1002 745INS 8/01/2013 1003 80 K Rd 100 Air New Zealand 100 Air New Zealand J Bloggs 101 LA Limos P A Scott B Mann Ltd 102 Dooneys 103 J Smith AP AP PC AP PR PR AP AP 3,500.00 3,500.00 3,500.00 3,500.00 2,400.00 2,400.00 123.00 123.00 1,200.00 1,200.00 5,000.00 5,000.00 346.00 346.00 3,600.00 Key to Codes Accounts Payable & Petty Cash QG QNZPE with GST QN QNZPE with no GST NG Non QNZPE with GST NN Non QNZPE with no GST Payroll PG PN NP GP QNZPE with GST QNZPE with no GST Non QNZPE with no GST Non QNZPE with GST Headings marked in yellow are spreadsheet extensions to the General Ledger for NZSPG analysis and foreign currency conversions to NZD NZSPG Final Application August 2015 – International Productions Page 9 of 13 Section 4 Statutory Declaration The applicant must complete the Statutory Declaration below to accompany this application certifying that the content of the application is true and correct. This should be completed by an officer of the applicant or a person authorised by the applicant in writing to do so. I,(1) ,of (2) do solemnly and sincerely declare on behalf of (3) that the information contained in the application for a Final Certificate for the New Zealand Screen Production Grant, and the documents attached to it, are correct and true in every particular and I make this solemn declaration conscientiously believing the same to be true and by virtue of the New Zealand Oaths and Declarations Act 1957. (4) Declared at This day of Before me, (5) (6) 1. Here insert name of person making the declaration. This person should be authorised to make the declaration on behalf of the applicant company. 2. Here insert address and office held in the applicant of person making the declaration. 3. Name of applicant. 4. Signature of person making the declaration. 5. Signature of person before whom the declaration is made. 6. Here insert name and title of person before whom the declaration is made. This must be a ‘prescribed person’ Barrister and Solicitor of the High Court of New Zealand, Justice of the Peace, Notary Public, Member of Parliament, Registrar of the District Court. If the declaration is made outside New Zealand please refer to section 11 of the Oaths and Declarations Act 1957. NZSPG Final Application August 2015 – International Productions Page 10 of 13 Section 5 List of Required Documents – PLEASE COMPLETE The NZFC will not start processing the application until all applicable documentation listed below is received. Attached 1. N/A Completed application form including the statutory declaration Section 1 Documents (Applicant Information) 2. A Company Extract (from the Companies Office) dated within a week of the date of this application or registration of a foreign corporation with a fixed establishment in New Zealand for tax purposes. 3. Signed Production Services Agreement or other document verifying the level of responsibility of the applicant for the making of the production in New Zealand or for carrying out the PDV Production in New Zealand 4. Any agreement relating to the transfer of the production from a previous production entity or entities Section 2 Documents (Production Information) 5. Schedule of key production dates. Daily Progress Reports (DPRs) and call sheets to be provided upon request. 6. One-line shooting schedule 7. Proof of distribution. This can be in the form of a deal memo or letter of confirmation from the distributor or broadcaster on official letterhead (not required for PDV application). 8. Copy of the final production or sample of footage (if requested) Section 3 Documents (QNZPE) 9. Expenditure Statement (refer to the example provided in Section 3 for detail required)* 10. Auditor’s report (on attached prescribed form) plus a copy of the audited expenditure statement signed or stamped by the auditor 11. Balance Sheet (a trial balance sheet is acceptable if the final is not available)* 12. General ledger of production expenditure for the production in Excel and PDF (refer to the example provided in Section 3 for detail required)* 13. Final production cost report – pdf 14. Final production budget (full) - pdf 15. Asset register 16. Schedule of foreign currency expenditure claimed as QNZPE converted at appropriate exchange rate NZSPG Final Application August 2015 – International Productions Page 11 of 13 17. Above-the-line cast contracts 18. Above-the-line crew contracts 19. Cast and crew travel schedule showing all arrival and departure dates from New Zealand and nationality of person travelling (template travel schedule available on NZFC website) 20. Schedule of all payments made to non-resident cast and crew showing portion claimed as QNZPE 21. Schedule of any non-recoverable advances paid to any cast or crew member (where all or part of that person’s fee is claimed as QNZPE) IRD requirements 22. Schedule of payments to non-resident contractors where non-resident contractors withholding tax has not been deducted because a certificate of exemption was issued or they qualified under the 92-day de minimus rule 23. Reconciliation of GST exempt or zero-rated expenditure which has been claimed as QNZPE (e.g. air travel into New Zealand) 24. Reconciliation of GST expenditure which is NOT claimed as QNZPE 25. Schedule of payments for non-resident equipment rentals which have NRCWT deducted from the payment, or a special tax rate certificate (‘STRC’) is held, where a specified rate has been deducted * All of these documents should be as at the same date NZSPG Final Application August 2015 – International Productions Page 12 of 13 Annex A New Zealand Screen Production Grant Auditor’s Report Incentives Executive New Zealand Film Commission PO Box 11 546 Wellington RE: [applicant name] and the screen production [name of production] We have examined the schedule of production expenditure referred to in the application dated ________________ and other records of the applicant in so far as they relate to the making of the [OR the PDV Production] on [format of screen production] entitled [name of screen production] and the [trial] balance sheet of the applicant. We confirm that we, the auditor responsible for the preparation of this report is qualified under the Companies Act 1993 to audit companies and is not an officer, partner, employer or employee of the applicant, or a related body corporate of the applicant. The applicant is responsible for the preparation of the expenditure statement. It is our responsibility to form an independent opinion, based on our examination, on those expenditure statement referred to below and to report our opinion to you. Basis of opinion: We conducted our audit in accordance with the New Zealand Auditing Standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial information is free of material misstatement. We have received all the information and documents necessary to enable us to ascertain the amount of Qualifying New Zealand Production Expenditure (QNZPE) defined in the New Zealand Screen Production Grant Criteria for International Productions dated 1 April 2014 (the Criteria) incurred by the applicant on the above screen production. Our work included examining, on a test basis, evidence supporting the amounts and disclosures in the expenditure and other statement, and the presentation of that statement. On the basis of such examination, we report that in our opinion the total of the applicant’s Qualifying New Zealand Production Expenditure on the screen production is NZ $_______________. In our opinion, this schedule presents fairly, in all material respects, the production (or PDV) costs of the production entitled [ ] for the period commencing [not earlier than 16 July 2007] and ended [ ] in accordance with the Criteria and generally accepted accounting principles. The [trial] balance sheet represents the financial position of the applicant as at [insert date]. In coming to this opinion we have exercised our judgement in a material way on the matters set out in the attached appendix A [appendix to show monetary cost of judgement and effect if taken another way on QNZPE] (Signed) (for Auditor) (Dated) NZSPG Final Application August 2015 – International Productions Page 13 of 13