Nephlabobo
03-31-2008, 01:27 AM
U.K. launches trade war over video game industry
Canadian tax credits luring firms from Europe Published: Friday, March 28, 2008
With billions of dollars at stake in the entertainment world's fastest-growing business, the British government is launching a trade battle with Canada over tax credits being used to expand this country's video game industry.
For months, British companies have been decrying the exodus of European game developers to Ontario, Quebec and B.C., where tax incentives are attracting multimillion-dollar investments and thousands of highly skilled foreign workers, whose talents are fuelling the Canadian industry's exponential growth.
"The Canadians have driven a tank over the French Citroen and have now parked on our lawn," Paul Jackson, head of the industry organization representing British games studios, complained to the Financial Times earlier this week. "It is becoming very challenging to keep core development studios here."
Now, the U.K. Ministry of Culture, Media and Sport has formally initiated an investigation of Canada's trade practices through the European Commission, a British government spokesperson told Canwest News Service on Thursday.
"The U.K. government is concerned that state aid offered to computer games companies by a number of federal institutions in Canada may not be compatible with World Trade Organization principles," the ministry said.
In Canada, Manitoba has the most generous tax system, allowing companies to write off as much as 45 per cent of labour costs. Quebec offers a 37.5 per cent labour tax credit. Ontario offers a 30 per cent labour tax credit for small companies, and 20 per cent for companies whose annual revenues are above $20 million. Nova Scotia and Prince Edward Island also have labour tax credits.
In B.C., there is no labour tax credit, but private investors receive a 30 per cent refundable tax credit, to an annual maximum of $60,000, when they invest in new media ventures. Corporations receive the same amount in a non-refundable credit.
If this is indeed an exodus from Europe, it is likely most developers would go to Quebec, where Ubisoft has its largest studio in Montreal.
So, in a country where
A) the industry is attacked from all sides (government *and* church)
B) games are repeatedly banned
C) The film industry wants to take over the ratings of games
D) Politicians make up outright lies about video games (Rape simulator!)
E) The government recently let the UK equivalent of fucking *Dr. Phil* recommend the guidelines for reviewing the game ratings system in the UK
the UK government actually gets *angry* when companies up and leave?
Not only that, they blame someone else for the problem instead of looking long and hard in the mirror at themselves.
This is just idiocy. You can declare a trade war with a country over one *part* of a country (one province - Quebec) giving incentives to business. It's called capitalism.
Between the insane measures that the UK is taking to monitor its citizens, and now hating capitalism, it seems the UK is quickly turning into the U.S.S.R. of old.
Don't want businesses to leave your country? Don't treat them like shit!
Canadian tax credits luring firms from Europe Published: Friday, March 28, 2008
With billions of dollars at stake in the entertainment world's fastest-growing business, the British government is launching a trade battle with Canada over tax credits being used to expand this country's video game industry.
For months, British companies have been decrying the exodus of European game developers to Ontario, Quebec and B.C., where tax incentives are attracting multimillion-dollar investments and thousands of highly skilled foreign workers, whose talents are fuelling the Canadian industry's exponential growth.
"The Canadians have driven a tank over the French Citroen and have now parked on our lawn," Paul Jackson, head of the industry organization representing British games studios, complained to the Financial Times earlier this week. "It is becoming very challenging to keep core development studios here."
Now, the U.K. Ministry of Culture, Media and Sport has formally initiated an investigation of Canada's trade practices through the European Commission, a British government spokesperson told Canwest News Service on Thursday.
"The U.K. government is concerned that state aid offered to computer games companies by a number of federal institutions in Canada may not be compatible with World Trade Organization principles," the ministry said.
In Canada, Manitoba has the most generous tax system, allowing companies to write off as much as 45 per cent of labour costs. Quebec offers a 37.5 per cent labour tax credit. Ontario offers a 30 per cent labour tax credit for small companies, and 20 per cent for companies whose annual revenues are above $20 million. Nova Scotia and Prince Edward Island also have labour tax credits.
In B.C., there is no labour tax credit, but private investors receive a 30 per cent refundable tax credit, to an annual maximum of $60,000, when they invest in new media ventures. Corporations receive the same amount in a non-refundable credit.
If this is indeed an exodus from Europe, it is likely most developers would go to Quebec, where Ubisoft has its largest studio in Montreal.
So, in a country where
A) the industry is attacked from all sides (government *and* church)
B) games are repeatedly banned
C) The film industry wants to take over the ratings of games
D) Politicians make up outright lies about video games (Rape simulator!)
E) The government recently let the UK equivalent of fucking *Dr. Phil* recommend the guidelines for reviewing the game ratings system in the UK
the UK government actually gets *angry* when companies up and leave?
Not only that, they blame someone else for the problem instead of looking long and hard in the mirror at themselves.
This is just idiocy. You can declare a trade war with a country over one *part* of a country (one province - Quebec) giving incentives to business. It's called capitalism.
Between the insane measures that the UK is taking to monitor its citizens, and now hating capitalism, it seems the UK is quickly turning into the U.S.S.R. of old.
Don't want businesses to leave your country? Don't treat them like shit!