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French video games tax breaks in question

EU thinks it might be illegal
Thu Nov 23 2006, 07:07
KILLJOY European Union regulators are investigating France's proposed tax break for video game makers.

The French government wants to give a tax credit worth 20 per cent of the cost of making video games with "cultural value". It would place computer games alongside the French film industry. However the EU thinks that this might be a cunning, but illegal, plan to prop up the French IT industry.

It says the standards to obtain grants were so wide you could drive a bus through them, sideways.

A spokesRegulator said that it cannot be ruled out that simulation video games or video games based on motor car races might benefit from the tax breaks.

The EU is worried that the tax break might give an unfair advantage to French companies over rivals in other EU countries. ยต

L'INQ
Newsday

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