More Reviews
REVIEWS Firefall Review
Repetitive gameplay makes this fall a little boring.

The Walking Dead: Season Two Review
At this point, you’re not coming back for the zombies. Let’s get down to business.
More Previews
PREVIEWS Lara Croft and the Temple of Osi Preview
Lara Croft takes another crack at the isometric adventure, and this time she makes Egypt angry.
Release Dates
NEW RELEASES Madden NFL 15
Release date: Out Now

Destiny
Release date: 09/09/14

FIFA 15
Release date: 09/23/14

Persona 4 Arena Ultimax
Release date: 09/30/14


LATEST FEATURES A Comprehensive Guide to Dealing with Controversy in the Video Game Industry
Need help wading through the latest misogyny/homophobia/racism/corruption debate in the gaming industry? Paul Tamburro’s here to help!

inFamous: First Light Battle Arena Hints, Strategies, Tips [Stream Over]
Watch as I build out our feature of useful tactics for players in Sucker Punch's wave-based and arcade-awesome arena mode.
MOST POPULAR FEATURES The Updating List of PAX Indies
We're heading to PAX Prime! Are you looking to check out a few unique indie games while you're there? UPDATED: Dragon Fin Soup, Dungeon of the Endless,

LEADERBOARD
Read More Member Blogs
FEATURED VOXPOP samsmith614 Since game design is a business, I decided to see what's really selling well for the PS4. I did this search a week ago, and at the time, out of the top 20 bestsellers on Amazon 10 had not even been released yet. By now some have been released. But others still have not. And yet others...

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


More from the Game Revolution Network




comments powered by Disqus

More On GameRevolution