U.K. Investigating Canadian Gaming Tax Incentives

I recently posted an article over at Dial about how Ontario is supporting the local cellphone industry by providing incentives for mobile content. It’s not the only sector that Canada is supporting, apparently. Video games are also a priority, with the government offering tax breaks for in-house development. It’s an incentive that has the U.K. asking questions about the incentive’s compatibility with World Trade Organization standards.

The Brits are up in arms over the numerous tax breaks and financial incentives that are offered to game developers in Ontario, Quebec, and British Columbia. As Paul Jackson, head of the ELSPA put it, “The Canadians have driven a tank over the French Citroen and have now parked on our lawn. It is becoming very challenging to keep core development studios here.”

Offering local tax breaks in any industry will cause interested parties to relocate and set up shop there. In this case, the U.K. is beginning to wonder if it’s fair, hence the investigation. We’ll keep you updated as the situation develops.

Source: Game|Life

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