More Reviews
REVIEWS FINAL FANTASY XIV: Heavensward Review
Final Fantasy XIV's first expansion has arrived, and it delivers a new adventure with plenty of dragons to battle.

Fallout Shelter Review
Bethesda's strategic vault simulator is fun and nostalgic, but will the publisher get fallout for the micro-transaction advantage?
More Previews
PREVIEWS Etrian Odyssey 2 Untold: The Faf Preview
Etrian Odyssey 2 Untold: The Fafnir Knight has a long name, but don't make fun of it. It can kick your ass.
Release Dates
NEW RELEASES BlazBlue: Chrono Phantasma EXTEND
Release date: Out Now

Lost Dimension
Release date: 07/28/15


LEADERBOARD
Read More Member Blogs
FEATURED VOXPOP whytenoiz ~~        When I was eleven years old, it was a very good year, and I can remember my daily routine vividly. These were the years before I owned a Sony Playstation, and I used to venture to my friends house - everyday after school - to watch him play through Final...

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