Alex Dunnagan

A Manifesto for Tax Equality

7th November 2019 by Alex Dunnagan

A manifesto for tax equality has been launched by a coalition of organisations calling on politicians to address tax inequality, curb tax avoidance and improve the administration of the tax system.

After ten years of cuts to public spending, there is now widespread consensus that more investment in public services is required. In this election, all of the main political parties are committing to major increases in public spending.

This manifesto provides practical policies on how to tackle the problem, and raise more funds in an equitable way.

This manifesto was produced by Tax Justice UK and TaxWatch with help from a number of leading academics. It is endorsed by the Equality Trust, Tax Research UK, the Women’s Budget Group and Church Action on Tax Justice. The lead authors were Robert Palmer (tax inequalities), George Turner (avoidance and evasion), and Paul Hebden (tax administration). The policies that we have costed could raise £69 billion, although the package of reforms, which includes measures where detailed costings are unavailable, could raise significantly more.

Read the full manifesto here.

Photo by Element5 Digital on Unsplash

Global Video Games Giants: Playing the system or paying their fair share?

9th October 2019 by Alex Dunnagan

A report from The Guardian, Revealed: global video games giants avoiding millions in UK tax, has shown that four large companies have claimed close to half of all Video Games Tax Relief (VGTR) since the scheme’s inception. The cost of Video Games Tax Relief has spiralled to over £100m a year, and since 2014 has seen WarnerMedia claim £60m, Sony £30m, and Sega £20m.

We have dug further into the accounts, and seen that not only are multinational companies claiming millions in relief, many are also engaging in tax avoidance, specifically profit shifting. The two companies which we have studied demonstrate that the VGTR scheme is almost bound to ensure that the UK games industry will not pay corporation tax – regardless of how successful the industry becomes. These examples highlight both how generous the relief is and how it can be open to abuse by companies which engage in tax avoidance.

Video Games Tax Relief is a poorly executed scheme. The intent is to promote British culture, and to foster innovation amongst small independent games developers through subsidies. The reality is that this scheme is being used as state-aid, acting as corporate welfare for multi-national companies worth billions.

The full report can be found here.

Photo by Marcin Lukasik on Unsplash

BFI refuses to disclose information regarding GTA V tax credit scandal

13th August 2019 by Alex Dunnagan

Press Release

The BFI refuses to disclose information regarding the Grant Theft Auto V tax credit scandal, claiming that it would not be in the public interest to do so.

BFI refuses to release any information relating to GTA V being certified ‘culturally British’
Disclosure would supposedly ‘prejudice the commercial interests of Rockstar North’
Following an appeal from TaxWatch stating that disclosure is in the public interest, BFI are holding a review into the decision

The BFI has responded to a Freedom Of Information (FOI) request from TaxWatch, refusing to release documentation relating to GTA V being certified ‘culturally British’.

The BFI’s decision follows an investigation into how the multi-billion dollar game claimed £42m in tax credits from the UK government.

As part of their research, TaxWatch asked the BFI how a game set in a fictitious representation of Los Angeles involving murder, car-jacking, and drug-running could be certified as ‘culturally British’. This certification allowed the developers to claim the tax credits.

The BFI has stated that they do not believe that it is in the public interest to disclose this information.

Commenting on the BFI’s refusal to release the information, Alex Dunnagan researcher at TaxWatch said:

“It is ridiculous for the BFI to say that it is not in the public interest to reveal how they have come to the conclusion that GTA V is culturally British.

“The decision by the BFI resulted in tens of millions of pounds of public money being used to subsidise the most financially successful game in history – with subsidy being granted after it had already made billions in revenues for the US multinational behind the title.

“It is only right that the public is able to scrutinise decisions like this, and to understand how their money is being spent.”

TaxWatch has appealed, with the BFI now undertaking a review into the decision.

alexd

A Manifesto for Tax Equality

Global Video Games Giants: Playing the system or paying their fair share?

BFI refuses to disclose information regarding GTA V tax credit scandal