The suit from Endemol claims eOne didn't deduct tax credits for shooting in Canada, allowing the Hasbro-owned company to report a massively inflated figure for the show's production costs.
Hell on Wheels
Endemol chose to shoot in Canada to take advantage of tax incentives to shoot in the region, according to the complaint. This led to Endemol approaching Toronto-based eOne instead of more experienced U.S.-based companies, like Sony or 20th Century Fox, to ensure that the series would qualify for the incentives.
“There was no justification for eOne’s hogging of the tax credits for its sole benefit,” reads the suit. “eOne’s decision to keep them solely to itself breaches not only the express terms of the MAGR Agreement, but also reflects eOne’s bad faith and unfair behavior that frustrates Endemol’s reasonable expectations regarding the benefit of contracting with eOne in the first place.”
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