More Reviews
REVIEWS The Witcher 3: WIld Hunt (PC) Review
The way it's meant to be played.

Stretchmo Review
Pushmo, Crashmo, Stretchmo... what's next, Twistmo? Vanilla Swirlmo? And why am I already excited for it?
More Previews
PREVIEWS Trine 3: The Artifacts of Power Preview
The popular puzzle-platforming series moves from 2D to 3D, but will it be a flawless jump or a headlong dive into a bottomless crevasse?
Release Dates
NEW RELEASES LEGO Jurassic World
Release date: 06/12/15

Deception IV: The Nightmare Princess
Release date: 06/14/15

RIDE
Release date: 06/23/15


LATEST FEATURES I Am a Whore
And 3DS games are pretty good.

Yakuza 0 Is the Best Yakuza Game Ever (Yakuza Podcast 2 of 2)
If you don't mind some story spoilers, this is a great podcast. I don't just say that because I'm in it. Well I mean, that's a huge part of it, but not all of it.

LEADERBOARD
Read More Member Blogs
FEATURED VOXPOP oblivion437     In all the talk of graphical downgrades no one seems much preoccupied with 'why?'.  Why build something and then proceed to tear it down, piece by piece, in the hope that ever more diminished expectations about the final product won't be severe enough to...

GAMING NEWS

Publishers Use US Tax Code to the Tune of Billions

Posted on Monday, September 12 @ 10:00:00 Eastern by

Like it or not, video games are big business. The games we anticipate and watch through development grow in value every day until their release. The industry holds titles to some of the biggest product launches in history. Games rake billions of dollars in, and most of that money goes to the publisher.

And remember, business is all about money, so it's no surprise that publishers do what it takes to hold on to that revenue, especially when Uncle Sam comes once a year to collect taxes on those billions. An article in The New York Times has shined a spotlight on Electronic Arts's methods around the IRS.

At 35%, taxes on corporations can take quite a bit of wind out of company sales, so in 2004, EA hired Glen Kohl, former employee of the Treasury Department, who now lobbies for federal tax breaks for companies with established offshore subsidiaries in low-tax countries. EA now holds 50 such subsidiaries in countries like Mauritius.

I don't even know where that is.

EA also keeps $1.3 billion offshore so that it's not taxed in the United States. It's also well-known that Canada has gone out of its way to attract video game development studios to some of its fine cities. Montreal in particular netted Ubisoft $321,000 for every job it relocated to it from the United States. Canada also offers a tax credit equal to 37.5% of a developer's payrolls.

I'll spare you the snarky comments and political opinions I have swimming around in my head right now.

[Source]
Tags:   EA, industry
FOLLOW ME ON TWITTER. YOU KNOW YOU WANT TO.


More from the Game Revolution Network




comments powered by Disqus

More On GameRevolution