Rockstar North are under fire for not paying their taxes, while claiming £42 million in tax credit from the government.
Scottish developer Rockstar North has been exposed as not having paid corporation tax at all in the last 10 years, according to an investigation by TaxWatch UK.
While Rockstar North has paid other taxes, the think tank claims that its received more money from the government than its paid in – claiming (but not yet receiving) over £42 million in video games tax credits.
The Video Game Tax Relief scheme was established in 2014 to help British video games companies, who must pass a cultural test in terms of the game featuring content that promotes British culture or which creates jobs for British employees.
GTA is (and always will be, according to Rockstar) set in America but is estimated to have a staff of over 600 people in Edinburgh.
The tax relief claims by Rockstar account for 19% of all tax credits granted since the scheme began, despite Grand Theft Auto V being the most profitable entertainment product of all time with over $6 billion in revenues and an operating profit since 2013 that TaxWatch estimates at $5 billion (£4.1bn).
Theres no suggestion that Rockstar has done anything illegal but is instead merely making use of an established tax system thats available to all UK companies.Read More – Source