FutureFilms Australia today blamed the Australian Tax Office (ATO) for ditching, at least in theshort term, its plans to raise up to $182m (A$250m ) for new Australian filmsthis financial year.

FutureFilms won't say how much it expected to raise by theJune 30 deadline but hinted that it was significant. It is now contactinginvestors to tell them their money will not be accepted because of the ATO's slow rulings about whether the projects wouldbe eligible for full tax benefits.

Future's London-baseddirector Tim Levy said it was disappointing their plans had been derailedbecause of how long it took the ATO to provide the rulings on individual projects.

About $2.5million has already been spent trying to set Future Films Australia up and ithas received two rulings that were meant to serve as templates.

FutureFilms Australia is a joint venture between the Future Film Group, which hasraised $4.5bn (£2.5bn) in nine years in the UK, and Jas Sekhonand Sam Gullotta of the local GoldstreamCapital Group.

"Theindustry is driven by people who feel passionately about their art but film isnot just about art, it is also about dollars and cents," said Levy at a mediabriefing in Sydney early this month. "What we trying to develop a relationship between theindustry and the investment community and capital markets, just as we have inthe UK."

But he alsoexpressed serious reservations back then about the "systemic difficulties"caused by the ATO's slow pace -- "It would be fine ifthe ATO was turning around rulings in amonth but it is not" -- and about them honouring the rulings they give.

"My messageis one of hope and optimism on the one hand but on the other is the frustrationthat we are dealing with bureaucratic intransigencies we simply do notunderstand."

The ATO would give no comment on FutureFilms.

The newsimmediately prompted Screen Producers Association of Australia executivedirector Geoff Brown to lash out at the ATO for bias against the film industry,which is not a new accusation.

The othercompany trying to raise significant money for film production in the lead-up toJune 30 is The FLIC company. The directors and advisers include filmmakers Barrie MOsborne and Fred Schepisi, producer Richard Keddie and actors Hugo Weaving and NoniHazlehurst.

It does not get rulings on individual films because it won a licence inDecember to raise $14.5m (A$20m) over two years. It has until the end of theweek to raise the first half.

Bangkok-based financier Robert Mullis is no longer attached to the FLIC.