Management of risks by SCOPE
For optimum management of the risks to which investors are exposed, SCOPE is careful to select audiovisual or performing arts projects for which the pre-funding is already well underway and for which the main assessment criteria have been met. This “green light” procedure is a key stage in the (co)production profession and provides initial protection for the investor.
Another element to be taken into account by the investor before choosing their Tax Shelter partner is the latter’s financial soundness. What capacity does the producer have to reimburse and/or compensate the investor in the event of a problem?
Apart from its proven experience of the industry (over 100 audiovisual projects which have already passed the relevant audits), SCOPE possesses the particularity, courtesy of SCOPE Pictures, of carrying out the auditing of required Belgian expenditure internally.
Finally, the company offers investors a joint indemnity commitment covering the possible loss of the tax benefit and involving the various companies in the group: SCOPE Pictures (or Sceniscope for "performing arts" projects), SCOPE Invest and SCOPE Immo. SCOPE benefits from a certain capital base (7 million equity at 31 March 2020) and believes that it is able to cover the main risk related to the failure of investors to obtain their tax certificate.
All of the risk management mechanisms are described in section 3 of the Prospectus.