UK may challenge Canada tax breaks via WTO legal action

The Minister for Culture, Media and Sport has said that the UK may challenge the legal basis of Canada's generous tax credits in a bid to level to the paying field for the country's interactive entertainment talent.

Speaking to Channel 4 news, the minister Margaret Hodge said: "We're looking at what they [Canada] have done. We're not sure what they have done sticks by the WTO rules on competition and will have to think about challenging what they are doing if they are, in our lawyer's views, breaching those rules."

In Canada's Quebec region games companies such as Ubisoft and EA have negotiated to get up to 40 per cent of their studio staff salaries refunded via tax rebates. Eidos opened a studio there early this year also.

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