The U.K.'s Ministry of Culture, Media and Sport has launched an investigation to determine whether Canada's enticements for videogame companies are on the up and up.
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."
The new investigation is meant to determine whether Canada's financial breaks for game developers is compatible with World Trade Organization principles.
Whatever the outcome of the investigation, it's easy to see why a game company would be tempted to relocate to Canada. Manitoba lets game companies write off as much as 45 percent of labor costs, while Quebec offers a 37.5 percent write off. Ontario lets small companies write off 30 percent of labor costs, and 20 percent for bigger companies.
Photo: David Paul Ohmer/Flickr
UK Launches Trade War Over Video Game Industry [The Vancouver Sun]
