Games Industry

Analysts: Rockstar North for the past 10 years have never paid tax on profits

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At the same time received 42 million pounds as benefits.

According to the report of the British research center TaxWatch, between 2013 and 2019 alone, the operating income of the entire Rockstar Games was about £ 4 billion – during this time the company released GTA V and Red Dead Redemption 2.

However, as TaxWatch notes, from 2009 to 2018, Rockstar North never paid income tax, and even received 42 million pounds from the state through the government system of tax incentives.

This amount equals approximately 19% of all tax benefits paid to the British gaming industry since 2014.

To get these benefits, the game from the developer must pass the so-called “cultural test” of the British Film Institute and meet at least 16 points out of 31, determining the contribution to the British setting and cultural diversity.

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According to TaxWatch, this is an absurd situation that raises questions about how Rockstar manages the benefits received.

Apparently, Take-Two believes that it is reasonable when almost 100% of the profits go to the parent companies and management in the US, while almost none of this comes back to the British companies involved in the creation and sale of the game.

Taxwatch

TaxWatch concluded that tax breaks were created to help local games that would be difficult to sell on the international market, and the fact that so many of them go to GTA authors shows how incorrect the system works.

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