The video game industry is known for providing countless hours of fun to millions and millions of gamers. It’s pretty easy for fans to forget the business side that comes along with making these fantastical worlds and competitive experiences. Today, we are reminded just how messy the business side of the gaming industry can be from a sticky situation involving Rockstar Games.
The publisher behind mega-hit titles Grand Theft Auto V and Red Dead Redemption 2 has been accused of dodging corporate tax for the better part of a decade. This news comes out of Tax Watch UK who runs investigative reports on large corporations who found that Rockstar, across all of their branches, paid no income tax between 2009 and 2018. The official statement from Tax Watch UK is as follows:
The avoidance of tax in the UK is only compounded by the fact that Rockstar North took advantage of a tax credit that relieved them of £70m worth of taxes between 2013 and 2018. They were able to gain this credit by stating that GTA is “culturally British” in nature, allowing them to receive payment. Tax Watch UK provided the following conclusion in their report.
The HMRC is the governing body that would have control over the fate of Rockstar games here. We will have to wait and see how this situation unfolds going forward.
