Quarter of big businesses are considering leaving Britain, while EA cites the power of tax breaks
TIGA, the trade association representing the UK games industry, today highlighted reports which demonstrate that the UK tax regime is uncompetitive and that development staff are being drawn away to Canada.
A new report by HM Revenue & Customs acknowledges that one in four large businesses are considering leaving Britain to escape its growing tax burden. Cuts in corporation tax do not appear to have provided the UK with a competitive tax regime. In the case of the video games industry, investment is being diverted to jurisdictions with tax breaks for games production. Andrew Wilson, the senior vice president of worldwide development at EA Sports, admitted in an interview with Develop that “EA has many studios that takes advantage of game tax breaks and EA Canada is certainly one of them,”” Andrew Wilson also acknowledged that EA employs”…lots of British developers at EA Canada.””
Dr Richard Wilson, CEO of TIGA, said:
“The UK needs a tax environment which encourages investment, business growth and inward investment. Unfortunately, HM Revenue and Customs’ own research demonstrates that 26 per cent of large businesses are considering leaving the UK because of the tax burden. In the case of the video games industry, businesses are already foregoing investment in the UK and investing instead in jurisdictions with tax breaks for games production.
“The provision of tax breaks in Canada is also helping to fuel a brain drain of key development staff from the UK. The Entertainment Software Association of Canada acknowledged earlier this year that Canada has been successful in attracting investment and skilled personnel from the UK. These new comments by Andrew Wilson of EA Sports confirm this phenomenon.””
Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“The Government rightly says that it wants to create the most competitive tax system in the G20. There is clearly much more that needs to be in order to achieve this objective. TIGA will continue to revise and strengthen its case for Games Tax Relief, enhanced R&D Tax Credits and a supportive tax environment generally in order to improve the UK’s tax regime.””
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Notes to editors:
About TIGA:
TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. In 2011, TIGA won a further four awards at the Trade Association Forum Best Practice Awards, including ‘Trade Association of the Year’ for the second consecutive year. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of ‘The Outstanding Organisation of the Year Award (SME)’. TIGA is an ‘Investors in People’ accredited organisation.
TIGA’s vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.
For further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email richard.wilson@tiga.org.
http://www.economicvoice.com/26-of-large-businesses-are-considering-relocating-abroad/50021581#axzz1SXMrBWUx
http://www.develop-online.net/features/1356/The-EA-Sports-psychologist