Rockstar and UKIE, a non-profit video game trade association in the UK, have responded to recent tax report scrutiny indicating that the developer/publisher has claimed lots of money in tax relief. The report suggested that Rockstar took the tax relief as part of their effort to get Grand Theft Auto 6 ready for launch.
The UK has a specific tax release program for video game developers. It’s called Video Games Tax Relief and was meant largely for smaller developers. Word came that Rockstar had claimed £37.6m (nearly $50m USD) in video game tax relief for 2018/19, which is roughly 37 percent of all claims in the program. According to Taxwatch UK, Rockstar was set to use that money in part for GTA 6.
Rockstar and UKIE have now responded to the report via VG247, and, while their statements differ, they offer generally the same stance. No, they don’t say anything about GTA 6, a game that’s almost constantly rumored these days. As far as the company is concerned, the studio brings jobs to the UK, so Rockstar is using the money for a good reason. The statement from Rockstar precisely states that “This investment and the success of British video games supported by the program not only significantly contributes to the economy, and to UK tax receipts, but also helps solidify the UK’s position at the forefront of video game development well into the future.” As mentioned, UKIE’s statement echoes the same sentiments, but it arrives with some estimations to back up the notion that the tax relief actually bolsters the economy. According to UKIE, every £1 invested into VGTR yields £4 in value added to the economy.
There’s been some understandable frustration for British citizens along with news that Rockstar hasn’t paid taxes in the UK in four straight years. Citizens, of course, feel that their tax money is floating a corporate enterprise, and some are pointing the proverbial finger at Rockstar as a company turned hypocrite. One only needs to play a Grand Theft Auto title to catch Rockstar waxing poetically about a corrupt system based on capitalism. The hypocrisy, then, comes from Rockstar taking advantage of said system to make its own games without paying taxes. It’s no secret that the studio makes tons of money, which only adds to the general anger from citizens.
That frustration clearly flies counter to the response provided by both Rockstar and UKIE. Yes, the organizations admit that taxpayer money is being used to, in effect, fund game development. Their point obviously still stands as Rockstar and other developers bring high-tech jobs to the UK. Whether or not that’s a serviceable stance may be determined by British citizens and their government in the coming years.
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Source: VG247
