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UKIE calls for dev support in face of EU investigation into UK games tax relief

Monday, 22nd April 2013 14:58 GMT By Stace Harman

Last week, in was announced that the EU Commission is to investigate the case for UK tax breaks and stated that “It is not clear whether the taxpayer should be subsidising this activity.” Now, the association for UK Interactive Entertainment has asked that UK developers provide evidence to help bolster the case.

UKIE’s CEO, Jo Twist, has called on developers to support the case for UK tax breaks, Develop has reported.

Twist highlighted that a full investigation into the benefit and necessity of any tax break is “standard European Commission procedure” and that the French games tax break system and the UK’s film tax credit scheme both underwent such a review before being implemented.

However, Twist also reiterated why she believes a similar system should be introduced for the UK games industry, despite the EU Commission last week casting doubt on the case for doing so.

“Global growth of the industry is predicted to be near nine per cent year-on-year and the UK is not keeping pace with this,” Twist stated. “On the one hand, there is huge turmoil, studio closures, consolidation. On the other hand, there are lots of exciting new businesses with fantastic new and potential IP.”

“We also truly believe children need to see that there is an incredible industry on their doorstep and we need to make sure the large companies making the games they love can continue to make them on British children’s doorsteps. We want them to consume British cultural goods too. We are a fascinating, richly mixed culture: our games should have the chance to reflect that if they want to.”

Jo Twist’s full breakdown of why UKIE believes the tax breaks to be necessary and what UK developers can do to help the association build its case in the face of the doubt cast by EU Commission can be found over on the Develop Online website.

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4 Comments

  1. Klaxusprime

    Cultural test is unacceptable as long as UK is part of European Union. Take it or leave it, Mrs. Twist ;)

    #1 2 years ago
  2. SplatteredHouse

    What can they do, if the UK government granted the money?
    “The UK government says it remains committed to the proposal.” according to the BBC.
    Well, isn’t that the end of it? They effectively have to ask permission to allocate their own resources, or something? Rubbish.

    #2 2 years ago
  3. Zarckan

    @2 I’m afraid not. Because the UK is part of the EEC, the EU has the final say on all TAX Exemption cases and if they are to be ratified or not :(

    #3 2 years ago
  4. Klaxusprime

    Uk government can’t grant their money because it has signed a treaty which

    1) forbids states from directly giving funds to support a sector of the economy, unless extraordinary conditions are met (i.e. natural catastrophes)

    2) forbids states from using incentives that discriminate companies of other European Union States with unfair requirements (i.e. knowledge of national culture).

    Just throw away the Cultural Test, whine some more and you’ll be allowed to use the funds! ;)

    #4 2 years ago

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