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Art world up in arms at “light bulb” law

Art world up in arms at “light bulb” law
Could the ruling on light works and higher import taxes face a legal challenge?

By Cristina Ruiz | From issue 220, January 2011
Published online 13 Jan 11 on theartnewspaper.com

Christopher Battiscombe, director of the Society of London Art Dealers, describes the ruling as “regrettable” and said it could hinder the EU art trade. However, he added that the society does not have the funds to support an appeal financially, although it would be prepared to support it in other ways.

European definition of art is absurd

The fact that the European Commission can, without any public consultation or publicity, overrule the decision of two national tribunals, makes a mockery of the judicial process

By Pierre Valentin | From issue 220, January 2011
Published online 13 Jan 11 on theartnewspaper.com

On 11 August 2010, the European Commission decided that a video installation should be classified as “DVD players and projectors”, and a light installation as “light fittings” when imported into the European Union [a decision which came to public attention last month, see The Art Newspaper, December 2010, p59, and which could have widespread implications for the art trade, see p58].

The two works, Hall of Whispers, 1995, by Bill Viola and Six Alternating Cool White/Warm White Fluorescent Lights Vertical and Centred, 1973, by Dan Flavin, had been the subject of a dispute between Haunch of Venison, the contemporary art gallery, and the UK’s HM Revenue & Customs (HMRC) in 2006. HMRC had sought to classify these installations not as works of art but as projectors and light fittings. This meant that instead of applying the reduced rate of value added tax of 5%, it applied the then standard rate of 17.5%, and customs duty of 3.7%. Extraordinarily, it sought to apply these taxes not on the value of the components but on the market value of the works.

While holding out one hand to the arts and culture, the government is taking away with the other, by removing financial support right across the sector

By Robert Hewison | From issue 221, February 2011
Published online 11 Feb 11 on theartnewspaper.com

"Did you know that this is the “year of corporate philanthropy”? I thought not. It was launched in December 2010 by the culture secretary, Jeremy Hunt, as part of the Coalition government’s drive to encourage philanthropy by businesses"

Low risk, high premiums Museums greatly over estimate the dangers of lending, European research shows

By Javier Pes | From issue 221, February 2011
Published online 10 Feb 11 (Museums) on theartnewspaper.

When works of art are lent by Europe’s leading museums, the cost of buying commercial insurance can swallow as much as 15% of the borrower’s exhibition budget, research by an expert working group, funded by the European Commission, has revealed.