The Guardian has revealed that some of the biggest video game makers in the world, get significant (if not total) reductions in the amount that they pay the UK in taxes.
How does the UK's Video Games Tax Relief (VGTR) plan work, and why should it's language always have suggested this result?
How do various nations and states compete for company's resources, and why do many jurisdictions feel that such subsidies are ultimately a net loss for their community?
How did the UK convince the EU that the subsidy would be aimed solely at games of unique British value, and why did the statutory test approved for such purpose fail in its stated aims?
And why should the legislature be considered to blame for this state of affairs even more than the companies which are taking advantage?
We might be of British cultural value at this point...in Virtual Legality.
#VideoGames #UK #Taxes
Discussed in this episode:
"Revealed: global video games giants avoiding millions in UK tax"
The Guardian - October 2, 2019
"State aid: Commission approves UK video games tax relief plan"
European Commission Press Release - March 27, 2014
"Games industry: Arrested development"
The Guardian - October 22, 2008 - Steve Boxer
"Corporation Tax Act 2009"
"Video games development"
Part 15B; UK Corporation Tax Act 2009
"The Cultural Test (Video Games) Regulations 2014"
UK Statutory Instrument; 2014 No. 1958
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"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
Rick has practiced for more than a decade at some of the country's largest law firms, representing IT, software, video game, and other technology companies, as well as the individuals and institutions which fund them.
DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.
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On "Help Us Out Hoeg!" a regular segment on the Easy Allies Podcast (formerly GameTrailers)
The Hoeg Law Firm is a business law firm with big law experience and a small firm approach focusing on start-ups, technology, financing, and everything else a business might need.