Taxwatch UK defended modifying the aid program and denounced that the Red Dead Redemption 2 company benefits most.
Rockstar Games has responded to allegations that the company was benefiting from the tax reductions granted to the video game industry. In a statement, the creators of Red Dead Redemption 2 and GTA V have argued that such reductions have been a success, as they allow companies to invest resources in the United Kingdom.
"The UK program to support the growth of a good number of creative industries through tax cuts is a proven success," said a representative of the US study. “The program has allowed Rockstar Games to make a significant investment in the United Kingdom, which has resulted in the creation of more than 1000 specialized and long-term jobs throughout London, Lincoln, Yorkshire and Scotland.
According to Rockstar, "this investment and the success of the British videogames supported by the program not only contributes to the economy and taxes of the UK, but also helps to solidify the position of the United Kingdom as a leader in the development of video games in the future" . However, as GamesIndustry.biz notes, the statement does not refer to information that claims Rockstar is not paying corporate tax in that country.
UKIE, an organization that supports the development of video games in that territory, also does not agree with the elimination of tax advantages. He maintains that for every pound invested 4 pounds are recovered. In addition, it emphasizes that the reduction of the reductions allows to support the 4320 jobs related to the development of video games.
Taxwatch UK requests a program reform
The opposing voices found shelter in a report published by Taxwatch UK, which mentioned Rockstar Games as the company that benefited most from the tax cuts. According to the document, the North American company monopolizes 37% of the aid, so it received 37.6 million pounds in 2019. In total, according to the same report, it has already obtained more than 80 million pounds in concept of Aid for the past four years. "The evidence that we have to urgently reform the video game tax reduction program is clear," they conclude.
The most recent video game released by Rockstar Games is Red Dead Redemption 2, which was released at the end of 2018 on PS4 and Xbox One. The PC and Google Stadia version was delayed until November of the following year.
