It turns out that the development company of 'Grand Theft Auto V', which has sold 65 billion yen, has not paid 1 yen of corporation tax
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A study of the UK think tank Tax Watch UK that the development company of the popular game Grand Theft Auto V (GTAV) based on the fictional city of Los Santos has not paid any corporate tax for 10 years It became clearer.
Report: Gaming the System-Tax Watch UK
https://www.taxwatchuk.org/reports/gaming-the-tax-system/
GTAV has been extremely popular since it was released in September 2013, and as of the end of March 2019, the cumulative number of shipments has reached 110 million. Game software that exceeds this is said to be only that Minecraft and Tetris .
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The estimated gross revenue of GTAV is about $ 6 billion (about 650 billion yen), and it is estimated that the profit that can be obtained will be huge. While GTAV has achieved so much success, the GTAV development company does not have to pay 1 yen for corporate tax because it uses certain incentives set up in the UK tax system. .
The GTAV was released by Rockstar Games in New York, USA, but the company created the game development studio Rockstar North under the company. And in the United Kingdom, where Rockstar North is based, there is a tax system called the Creative Industry Preferential Tax System.
This has been designed for the purpose of fostering the creative industries responsible for cultural promotion, such as movies, animation, TV programs, the British Film Institute by the (British Film Institute) is content that has been certified as 'British cultural' production -Some or all of development costs are subject to tax deductions.
It is unclear how a GTAV with no major British characters appeared in a fictional American city and it was judged as 'British cultural', but because it is a British production company, it is Rockstar North. Also take advantage of this preferential tax system. Because of that, the company has not paid corporate tax for 10 years since 2009, and it has also received a total of approximately 42 million pounds (approximately 5.5 billion yen) in total in three years from 2016 to 2018. Of. The amount of £ 42 million is equivalent to about 20% of the rebates the UK video game industry has earned since the inception of the tax rate.
by James Della Valle
On the grounds that they have been able to take advantage of this kind of benefit despite having a large profit, Tax Watch UK stated that “Rockstar North had entered into a contract that would overpay the parent company I guess it's not. This will significantly reduce the tax benefits of Rockstar North, which will allow Rockstar North to take full advantage of its incentives.
Tax Watch UK pointed out that '100% of the wealth has been transferred to the parent company and senior management in the United States, with little benefit to the game industry in the UK,' and that 'the situation is ridiculous.' It is strictly criticized. We require the Revenue and Customs Agency (HMRC), which is responsible for the UK tax system, to conduct an investigation promptly.
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in Game, Posted by log1l_ks