Report: ESLPA Expressed Concern During Tax Break Talk with UK Government

December 8, 2010 -

A four-page expose put together by GameIndustry.biz reveals that ELSPA -- the trade group representing the interactive entertainment industry in the UK -- may have quietly been working against tax breaks. While it sounds like a nefarious, under-handed scenario - and one that may have inadvertently sent a mixed signal to the government at the time - the group had its reasons.

While the industry continually lobbied the government last year to provide tax breaks and other business support, ELSPA aired a number of concerns it had with the government over "cultural tax breaks." ELSPA apparently warned the government against such tax breaks, instead urging them to offer the industry 'software' tax breaks.

The difference between the two is vast:

"Currently videogames are classed as 'software' under World Trade Organisation rules, and as such enjoy the benefit of free trade status," wrote ELSPA in its DCMS submission. "Cultural products on the other hand, are afforded a protected status, that allows countries to apply trading restrictions to protect their own locally cultural products and therefore to restrict free trade.

"Any change to the classification of videogames could seriously affect the commercial development of the industry and its long-term future. Currently, videogames are not affected by the imposition of retail levies, output quotas and the like which are applied to cultural industries (such as the French and Spanish film industries) in order to fund the tax relief schemes.

"Our concern is that the provision of a tax relief scheme on cultural grounds could label the industry's products, in the EC's view, once and for all as cultural, and that this could be an irreversible first step towards the imposition of retail levies or further protectionist regulation aimed at sourcing funding to support the tax relief scheme.

"Any introduction of retail levies within the videogame industry would, from the publishers' point of view, erode any previous financial benefit derived from tax relief at the development stage, mainly because retail levies would apply across all products whereas only a percentage of videogames in development would be successful in obtaining tax relief."

ELSPA, now known as UKIE, claimed that it was not engaging in "anti-tax talk" at the time:

"We have no idea where that has come from, it's totally left of field and has certainly not been on the agenda of any of the many political briefings we've been involved in," said ELSPA director general Michael Rawlinson at the time. "That's not to say it's not true, but we've been discussing tax relief for some time, and lobbying solidly. It's something we haven't come across."

Inevitably, the games industry did manage to secure film-style tax breaks in the 2010 budget from outgoing government early in 2010, but as the new government began making deep budget cuts, the tax break was one of the first items on the chopping block.

None of ELSPA's concerns on cultural tax breaks had been made public until the GI.biz report.

On a related note, GI.biz also offers an extensive timeline of events dated January 2008 - November of this year related to ELSPA's public statements on tax breaks for the UK games industry.

Thanks Vincent Scheurer of London-based law firm Sarassin LLP - who had a hand in making the report possible in the first place because of its Freedom of Information Act request on lobbying efforts.


Comments

Re: Report: ESLPA Expressed Concern During Tax Break Talk ...

And we also know that a major unnamed publisher lobbied the government not to introduce tax breaks as it would have had an affect on the Canadian games industry.

 
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Technogeekhttp://www.newsweek.com/gamergate-about-media-ethics-or-harassing-women-harassment-data-show-27973610/25/2014 - 8:54pm
TechnogeekAnd speaking of harassment and Gamergate, Newsweek had a social media analytics company analyze the hashtag in the interest of finding out what the movement was really about. The results should surprise absolutely nobody at this point.10/25/2014 - 8:54pm
Neo_DrKefkaI was called a traitor for speaking out on harassment and I was put on a list for people on twitter to mass report me. Only GamerGate site that has come out of this that has been reputable would be TechRaptor. 2/210/25/2014 - 7:09pm
Neo_DrKefka@Neeneko The reason why I ended my support of #GamerGate was the fact KingofPol (The guy who was sent the knife) ended up saying crap about those with autism. At this point I confronted the community and some big wig writers on the #GamerGate side. 1/210/25/2014 - 7:08pm
NeenekoIt would also mean they have to confront that the sites already mostly cater to them and wiping that small percentage of otherness just does not justify new sites.10/25/2014 - 6:55pm
Neeneko@ quiknkold - problem is it has never been about freedom, it is about dominance, ownership, and priviliage. women and minorities should be the ones leaving and creating their own spaces, not them!10/25/2014 - 6:54pm
Neo_DrKefka@Mecha I hear you about KingofPol this is a guy who is using GamerGate to boost his career. Most of his streams are crap about him talking about him being drunk. What happened to him was wrong but it doesn't change the fact he has instigated much of this10/25/2014 - 5:40pm
Craig R.And I'll be perfectly happy in never seeing the phrase 'false flag' ever again, as it is one of the worst notions to ever come out of the camp of the tinfoil brigade that is already completely overused.10/25/2014 - 3:50pm
Craig R.Gone for a week and come back to find GG didn't go away at all. Dammit.10/25/2014 - 3:48pm
Matthew Wilsonif they were serious, they would go to youtube. most youtube game reviewers tend to revew games as product, and tend leave social issues out of it.10/25/2014 - 1:42pm
quiknkoldif the gamergaters were serious, they'd realize that Kotaku and Polygon arent the only games in town, and that with the freedom of the internet, they could create their own websites and achieve the goals they are trying to achieve without arguement.10/25/2014 - 1:35pm
james_fudgehe should have called the police.10/25/2014 - 1:20pm
TechnogeekAt least my statement still holds if it does turn out to be a false flag.10/25/2014 - 1:03pm
NeenekoThough I admit, since doxxing and false flag where heavily used tactics of the GG supporters, while they are not historical tactics used by detractors, I am skeptical how much it is really 'both sides' doing it in any real volume.10/25/2014 - 1:01pm
NeenekoOne thing that makes all of this messy is 'false flag' is a serious concern here. It does not help that the original GG instigators were also known for doing elaborate false flags to discredit feminism themselves.10/25/2014 - 12:59pm
MechaCrashThe guy who got the knife is the one who advocated doxxing, by the way, and was getting court documents about Zoe Quinn so he could publicly post them. It doesn't make what happened to him right, but he deserves no sympathy.10/25/2014 - 12:42pm
TechnogeekNo, that's a pretty shitty thing to do and I fully support the responsible parties getting a visit from the relevant legal authorities.10/25/2014 - 12:17pm
Neo_DrKefkaSomeone anyone tell me how two wrongs somehow make a right? This is becoming exhausting and both sides are out of there minds!10/25/2014 - 11:40am
Neo_DrKefkaSo two GamerGate supporters received a knife and syringe in the mail today. The same GamerGate supporters who said how awful it was were seen in other tweets gathering lists and sending our similar threats or harassment to shut down the other side....10/25/2014 - 11:36am
NeenekoJust look at how interviews are handled. Media tends to pit someone who is at best a journalist, but usually entertainer, against an expert, and it is presented and percieved as if they are equals.10/25/2014 - 7:38am
 

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