Hollywood Pushes Back Against New China Tax By BEN FRITZ and LAURIE BURKITT
Twentieth Century Fox is refusing to accept about $23 million it is owed on Chinese box-office receipts for producing "Life of Pi" as a result of a clash between Hollywood and Chinese authorities, studio executives say.
The dispute centers on a new value-added tax that China is in the process of imposing on a wide range of goods and services. When it comes to movie tickets, state-owned distributor China Film Group has recently sought to deduct the cost of the tax entirely from foreign producers' share of the box office, said several people involved in international film distribution.
The tax method is causing consternation in Hollywood, where it is seen as the latest in a series of efforts to limit American studios' ability to generate profits in China despite a deal last year that was supposed to open doors. The policy undercuts one of the provisions of that agreement, reached between the American and Chinese governments, which bumped up the percentage of ticket sales that foreign producers receive......................>>>>...................>>>>...................http://online.wsj.com/article/.....TWhatsNewsCollection
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