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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.
The tests are not that stringent. There is not a single developer/publisher I know that does not claim tax relief via the scheme.
— Gareth Williams㊗️ (@Shakacarnage) July 29, 2019
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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