Rockstar North hasn’t paid corporation tax in the UK for 10 years, claims tax relief – TheSixthAxis

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The thinktank TaxWatch UK has issued a report stating that Rockstar North, aspect of Rockstar Games and a subsidiary of Take-Two Interactive, has not paid any corporation tax in the UK for the final 10 years. This is in spite of record-breaking sales for Grand Theft Auto V and higher sales for Red Dead Redemption two, along with the earnings coming in from each GTA On the net and Red Dead On the net. The report also claims that the studio claimed £42 million in tax relief from the government’s tax relief fund for the game business. Applicants to this fund have to meet a total of 16 points out of 31 to be eligible for tax relief, and you can see the complete list of needs under.

Section A – Cultural content material
A1 Set in the UK or an EEA state or (Up to three points will be awarded for set in an undetermined place) Up to four Points
A2 Lead characters British or EEA citizens or residents (or characters from an undetermined place) Up to four Points
A3 Video game primarily based on British topic matter or relates to an EEA state or underlying material four points
A4 Original dialogue recorded primarily in English language or one particular of six UK indigenous languages Up to four Points
Section B – Cultural contribution
B Video game represents/reflects British creativity, British heritage or diversity Up to four Points
Section C – Cultural hubs
C1 At least 50% of the conceptual improvement or storyboarding or programming or style requires location in the UK two points
C2 At least 50% of the music recording or audio production or voice recording requires location in the UK 1 point
Section D – Personnel
D1 1 of the three lead project leaders is an EEA citizen or resident 1 point
D2 1 of the three lead scriptwriters is an EEA citizen or resident 1 point
D3 1 of the three lead composers is an EEA citizen or resident 1 point
D4 1 of the three lead artists is an EEA citizen or resident 1 point
D5 1 of the three lead programmers is an EEA citizen or resident 1 point
D6 1 of the three lead designers is an EEA citizen or resident 1 point
D7 At least 1 of the 7 crucial HoDs is an EEA citizen or resident 1 point
D8 At least 50% of the improvement group are EEA citizens or residents 1 point
Total 31 points

Rockstar North would meet the needs probably via all of section D, which offers eight points, C1 offers a additional two points, A4 which adds one more four points, and there could be arguments for B as the game is designed in Britain taking it previous the 16 point threshold. Tax is an extremely complex region and no doubt Rockstar North is set up so considerably of the earnings in fact goes back to Take-Two Interactive in the USA. That earnings going back to the US would imply the UK finances wouldn’t show a profit so no tax would be eligible to be paid.

Rockstar is not the only firm to take benefit of loopholes in UK tax law with the likes of Amazon and Starbucks also cited as corporations that do not spend as considerably tax as anticipated. Gareth Williams of LittleBigPR tweeted the following.

Till such loopholes are addressed this will continue, with it unlikely that Rockstar will be voluntarily paying tax to the UK government when it has discovered methods which imply it does not have to.

Supply: The Guardian



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