Rockstar North has been using tax programs and other intelligent accounting procedures for years to avoid paying corporate taxes in the UK, although its most successful Game Grand Theft Auto V sold millions of copies and earned billions of dollars.
This situation is reflected in the public tax returns for Rockstar North, ltd. This report was released this weekend by a group called Tax Watch, which calls itself an "investigative think tank" and previously pursued Google and Starbucks for alleged tax avoidance.
"This is a drive-by attack on UK taxpayers and the welfare of businesses is the worst," said group director George Turner in a press release promoting the weekend report Representative from Rockstar declined to comment.
Rockstar Games is headquartered in New York City and studios around the world, but for much of the mega-music's existence, much of the work involves GTA Launched in Scotland at Rockstar North, which operates as a separate company for financial purposes, Rockstar North reported a profit of £ 8,300,782, or just over $ 10 million, in 2018. Meanwhile, the company did not pay corporate taxes in the United Kingdom This is largely due to the fact that it is part of the United Kingdom's video game tax relief program, which R ockstar was eligible for more than £ 19m (or $ 23m) in tax credits. The Government Program was intended to provide financial support for British games and require them to contain British themes and / or be designed by many Britons, the latter of whom probably qualified rock star.
The Tax Watch group calls the situation "absurd". The program was designed to help smaller game makers and not spearhead any company's most successful game makers by paying corporation tax. They are particularly contemptuous of the accounting that represented the creation of GTA as a barely profitable venture for Rockstar North, as the US publisher Take-Two claims most of the revenue.
"Take -Two seem to think that it is reasonable that nearly 100% of the profits should go to the US-based parent company and senior management, while the UK companies involved in the manufacture or sale of the company Game involved, almost no profit goes to. "Taxwatch Group says in its conclusions. "We do not believe that this sharing of profits under the so-called" Arm's Length "standard of international taxation can be justified." The Group urges the UK Government to reconsider its tax relief plan.
Presumably Rockstar North has done this paid taxes on employee incomes and VAT, Taxwatch director Turner said Kotaku, but he noted that these tax bills are not publicly available.
As far as Take-Two is concerned, it also publishes . NBA 2K Series Civilization and more, the company reported a profit of 173 million USD in 2018. This included a tax concession of nearly $ 37 million.