Taxes
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CE-Oh no he didn't!: BMW exec says electric vehicles 'won't work,' but would love to sell you one anyway
Jim O'Donnell, CEO and chairman of BMW North America, recently sat down with the Detroit News to discuss the ActiveE -- an electric version of BMW's 1 Series coupe, available for lease in the US this fall. Most CEOs would've probably used the opportunity to wax PR poetic about their company's bold, forward-looking ethos, because that's what CEOs do. O'Donnell, however, used the occasion to let us in on a dirty little secret: EVs don't actually work. According to O'Donnell's undoubtedly robust calculations, EVs won't work for "at least 90-percent" of the human population, at current battery ranges. The situation is so dire, in fact, that the US government shouldn't even bother wasting its $7,500 tax credits on frivolous things like innovation, national security and clean air. "I believe in a free economy. I think we should abolish all tax credits. What they are doing is putting a bet on technology, which is not appropriate. As a taxpayer, I am not sure this is the right way to go." O'Donnell went on to say he's "far more optimistic" about diesel's chances of increasing BMW's US market share -- because, you know, it's not like the oil industry gets any tax breaks, or anything. And it's not like diverting some money away from oil subsidies and putting it toward EV technology would create the "level playing field" that O'Donnell and his company so desperately need. No siree, the US energy market is just as pure and fair as it's always been -- and it certainly doesn't deserve to be corrupted by an EV tax credit pestilence. That said, O'Donnell would still really appreciate it if we buy the battery-powered i3 when it launches in 2013. Who knows? He may even throw in a free bridge, too.
5 iOS apps for Tax Day
With roughly a week to go before taxes are due -- the federal deadline is on April 18, and many states have followed suit -- plenty of Americans are scrambling to file before the clock ticks away. We've gone and found five apps that will help you make Tax Day, and waiting for that refund, a bit easier. TurboTax SnapTax (Free, but has in-app purchases): This app from Intuit allows those who are eligible to file with the simple 1040-EZ to do their taxes straight from the iPhone. Snap a photo of your W-2, answer the questions and hit the button to zip your return to the IRS. While the app itself is free, actually filing a return costs $19.99.
Judge rules against Hawkins personal bankruptcy, EA founder still owes millions in taxes
A reading from Forbes on the prophet Trip Hawkins: And lo, the San Francisco federal judge saw through the abusive tax shelters Hawkins used to hide millions in profits from his Electronic Arts days and declared them bad. Smiting a declaration of personal bankruptcy, the judge believed that Hawkins should give unto the government the estimated $20 million or more in federal and California state taxes he is in arrears to. The 16-page opinion by US District Judge Jeffrey S. White pointed out that Hawkins "continued to spend money extravagantly with knowledge or his tax liabilities" and that he "planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed." General rule: Pay your taxes. It's what did in Capone. Better rule: When the government is on your butt about tax evasion, it's best not to play it like Hawkins and purchase a $70,000 car ... especially when it's your fourth automobile in a two-driver household. [Image credit: AlanCleaver_2000]
UK government may close online shopping tax loophole
The gaming significance of the above headline may not seem apparent, but bear with us. This May, the UK government will consider "the continued marketing and use of highly aggressive and artificial tax avoidance schemes." As noted by VG247, businesses located in a certain part of Jersey (the UK one, not the one famous for GTL) are not required to include value added tax (VAT) in their prices. As such, many game sellers -- GAME, Amazon, Play, etc. -- base their businesses there, allowing them to sell games at lower prices than competitors (though only on items under £18). MCV reports that the consultation planned for May will likely see current countermeasures extended. Said countermeasures allow the government to "enable the listing of specific tax avoidance schemes for direct taxes so that the subsequent use of such schemes will carry consequences for the user." Within four years, the measures could earn the UK government as much as £4 billion. Of course, they would also have the added side effect of raising prices on certain games.
TurboTax for iPad just in time for tax season
You may not have thought that doing taxes on your iPad was an option, but turns out it is. TurboTax has released what seems to be a full version of its tax software for the iPad, available on the App Store right now (the app is actually called 2010, but that's because it's for your 2010 taxes, not because it's a year old). The app is a free download and will help calculate your taxes for you (along with any financial tangles you happen to have), though actually filing those taxes will cost you: $29.99 for federal returns, and $36.99 for state returns. I haven't used the software (being a freelancer, I've got quite a few more complications, and I usually hook up the services of someone more qualified than I am), but if you've just got a simple form from one company and would rather enter the numbers from a couch, the iPad app should come in handy. If you'd rather do your taxes from the iPhone, TurboTax also offers a Snaptax app that will put them together with just a snap of your W-2 form. Again, there are limits on what it can handle (no dependents, and no home or real estate ownership), but if you just want to put the numbers in and get that return back, check it out. Editor's note: Many other solutions for e-filing your U.S. taxes exist, and unlike TurboTax, quite a few of them are free of charge. The IRS itself provides a list of free tax filing services on its website. These alternatives may not be as geek chic as TurboTax's iPad app, but at least they won't hassle you for money just to file your tax return. [via Doc Rock]
Apple, others lobby for tax holiday
Fortune is reporting that Apple is one of many major multinational corporations that are banding together to lobby the US government for a one-year "tax holiday" on foreign cash that is repatriated back to the country. At the present time, repatriated cash is taxed at a 35 percent rate. The companies, which include Cisco, Duke Energy, Pfizer and many others in addition to Apple, are looking for a one-year window in which the rate would drop to 5 percent. Cisco CEO John Chambers has advocated the idea for years, saying that allowing the cash to be repatriated at a lower rate would stimulate investment in the US and allow shareholders to reap the rewards of their investments in the form of higher dividends (note: Apple does not pay shareholder dividends). These companies currently have about US$1 trillion in cash parked overseas, and bringing that money home at a lower tax rate would be expected to have a positive effect on the US economy. A previous tax holiday in 2004 didn't necessarily result in new investment, but it did create an increase in shareholder payouts of between 60 and 92 cents for every dollar repatriated. Lobbyists for the group are expected to try to attempt to have the repatriation tax become part of any corporate tax reform bill that Congress tries to pass this year. [via Barrons]
The Daily Grind: How much did you spend on MMOs last month?
$14.95. That's how much I spent on MMOs in December, which went entirely into the pockets of Cryptic Studios for Star Trek Online. Otherwise, my journeys in Guild Wars, Lord of the Rings Online, and the RIFT beta were completely free. We have come a long way from the days of $8/hour CompuServe games, my friends. Of course, I've had months where I've juggled a couple subscriptions, or purchased a new game, or even (gasp) spent a few bucks on microtransactions. Disposable income is a really nice thing to have, but it seems like there's a lot more to spend it on online than ever before. Because we're nosy about your finances, how much did you spend on MMOs last month? That's including subscriptions, game purchases, microtransactions and paid services. Don't forget to itemize your purchases for tax deductions!
North Carolina to provide tax breaks for game companies
North Carolina is going to provide some epic tax breaks to video game developers. According to the ESA, a bill signed by Governor Beverly Perdue will provide a 15 percent tax credit on "wages and compensation for employees involved in digital media production, or the creation of a platform or engine to run such media." Of course, the big winner here is North Carolina-based Epic Games, which swims in a lake of Unreal Engine money and develops games in its spare time. However, other benefactors of the tax breaks include Electronic Arts, Ubisoft and another dozen or so developers in the state. The incentives take effect January 1, 2011. Publishers, developers and governments use tax breaks like Ezio wields the hidden blade. It's a weapon, either for financial defense (which seems to be the case in North Carolina) or aggression. With Canada's relentless siren call of tax incentives, if other countries and states don't step up their game, The Great White North will continue its Tim Hortons-fueled march to eventually developing most of the world's video games.
The Virtual Whirl: Death and taxes
"Nothing is certain but death and taxes"; a rather sardonic and bleak proverb, quoted and paraphrased by a number of famous figures over the years. The earliest on record was Daniel Defoe, in The Political History of the Devil in 1726. Well, this week the death part doesn't concern us so much as the taxes. Many Americans have spent this month scrambling to get their taxes filed, and for many of the rest of us our own turn comes due in just a couple of months. With that in mind, I thought I'd talk about the taxation status of virtual assets.
TUAW Poll: What Apple product are you going to buy with your tax refund?
Happy Tax Day! It's April 15th, and in America, that means that the air is filled with the sound of screaming taxpayers who waited until the last moment to file their returns. For those who may have filed early and might have even received a tax refund check, we offer this distraction to cover up the sight of your next door neighbor in his backyard shredding documents. Apple products are probably more popular now than they've ever been, so we'd like to know what you'd spend your hypothetical (or real) tax refund check on. Answer our poll, see what other TUAW readers are lusting for, and leave us a comment if your favorite choice isn't in the list. %Poll-44608%
Officers' Quarters: Tax time
Every Monday, Scott Andrews contributes Officers' Quarters, a column about the ins and outs of guild leadership. He is the author of The Guild Leader's Handbook, available this spring from No Starch Press. In the United States, federal and state taxes are due in just a few days -- April 15 is the deadline. If you haven't figured out your taxes by now, you're probably in a bit of a panic. Though we often resent paying, taxes are the price of living in an organized society. They pay for defense, schools, roads, social programs and a host of other benefits. Some we can all agree on; some are a matter of fierce debate. In a guild, taxes are often a controversial issue. Some guilds who use point-based systems like DKP will tax members' point totals to prevent point hoarding. This week, one reader is wondering about a different kind of tax. Hi Scott, I am a member of a casual raiding guild. Recently some of the officers have been kicking around the idea of a "raid tax" -- a set value of mats used in a week's worth of 25-man raiding that can be paid by members either in gold or through supplying the mats themselves. It's funny because the "tax" for a given week sounds exorbitant to me (close to 1,000 gold when they figure in the price of enchanting mats and gems for loot).
Florida legislature passes bill for better digital tax breaks
Though the peninsular state of Florida plays host to a handful of video game companies, including EA Tiburon and Alienware, it's not really a hotbed of ludological movers and shakers. The state's governing bodies are looking to change that with a recently passed bill which will increase tax cuts on film, television and digital media (see: video game) production from 15 percent to 20 percent. Our favorite part about the bill, however, is that it awards an additional 5 percent break to film studios who produce movies during hurricane season. We wish this rule applied to game developers as well. "Okay, guys, we know we set a launch date of Spring 2011, but it's officially crunch time, because our studio doesn't have a roof anymore."
UK moves forward with game tax relief
[Flickr: Bashed] Following exhaustive lobbying by TIGA, the UK will implement tax relief for video game developers. The change will allow game companies to keep more profits from successful products and receive tax credits to reduce losses when their games don't perform well. TIGA CEO Richard Wilson believes that the relief will "protect 3,550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property." He continued that it was a "decision at the right time for the right industry." The UK games industry has been hit particularly hard by the current economic climate and further affected by a lack of recognition for the sector. In stark contrast is Canada, with its favorable tax breaks, as proven once again this past week as Warner Bros. announced it was opening a major studio in Montreal.
Apple store in Brazil? Jobs says no
Rio de Janeiro may have picked up the 2016 Olympics, but they won't be getting an Apple store. According to MacMagazine Brazil, the city's Secretary of Heritage emailed Steve Jobs personally to ask if there were any plans to start up an Apple store in the city. Jobs replied back in the negative, citing high taxes on imports in the area and saying that "many [other] high-tech companies feel that way." Apple has no stores at all in Mexico or Central or South America. Almost all foreign countries apply import tariffs to products manufactured elsewhere, but apparently charges in those countries are too high for Jobs to be interested. He said that the high charge "makes it very unattractive to invest in the country." Some manufacturers will lower their retail prices to a certain country in an attempt to dodge higher tariffs on more expensive goods (taking a small cut on profits in order to avoid paying high fees), but obviously Apple, as a premium manufacturer, would rather not get involved if it means lowering their prices. So, for the moment, Brazil will have to go without an Apple Store. [Thanks, Silvio Sousa Cabra!]
SnapTax allows you to do your taxes on your iPhone
It's a new year, which means that in a few months, taxes will come due yet again. So why not get a head start on them with your iPhone -- there is, it turns out, an app for that. TurboTax has an app coming out called SnapTax that promises to make taxes easy. All you do is take a picture of your W2 form with the camera, and then the software automatically reads the form, extracts the necessary information, and then uploads it into TurboTax's software and processes your return. Pretty amazing. There are, of course, a few drawbacks here. First is that you need to be in California. While the software will eventually work everywhere, they're beta testing in the Golden State this year only. Second is that you should have a later generation iPhone -- the optical text software works better with more processor power, so you'll have to fix fewer errors on your 3GS than earlier versions of the hardware. And finally, you'll need to have a pretty simple tax return. There are more options to handle more complicated tax issues, but basically the software is designed for a simple W2 plus maybe some extra income. Being a freelancer, I have all sorts of hoops to jump through, so I'll have to head to the accountant yet again. But hopefully this will help some of you. The app is coming later this month and will be available for $9.99. I'm not sure if that includes the actual return, but if it does, that's a bargain. If you're lucky enough to be in California and in the position to use this app, keep an eye out for it.
Report: UK government rejects gaming tax break proposal
[Image credit: Bashed] The Guardian reports that the British government will likely reject the Games Tax Relief proposal. According to the paper, the video game industry "contributes more to the UK economy than the film industry," yet doesn't receive the same assistance from the government. All of this is leading up to Tiga, the UK's trade association for the video game industry, either owning the role of "The Boy Who Cried Wolf" or Cassandra of Greek mythology. The organization claims that 1,700 jobs will be lost without tax breaks and that competition from other countries, like the US, France, and especially Canada, is too strong. Dundee and Manchester are to receive a £10 million cash injection from the government, but that probably pales in comparison to government tax relief. It appears that Tiga is going to have to take a gamble on the Shadow Lords soon. [Via Edge]
Scotland fighting to keep Realtime Worlds, other native game developers
It seems Scottish government officials aren't going to let the nation's game developers get stolen away without a fight. Last week, we reported on Ireland's attempts to court Scotland's biggest game developers, starting with APB creators Realtime Worlds. Scottish Secretary of State Jim Murphy recently met with Realtime Worlds owner Dave Jones to talk about how Scotland can convince the company to stick around -- specifically discussing the option of tax breaks and other modes of government support. If you found that last paragraph boring, here are the CliffsNotes: Ireland and Scotland are fighting over Scotland's game developers. As their incentives continue to escalate, we completely expect to see a "free ponies" offer on the table within the next few weeks.
UK game tax policies has Realtime Worlds considering move to Ireland
Realtime Worlds is becoming synonymous with Scotland's game development with their upcoming title All Points Bulletin, but there are reports the company may consider relocating to Ireland. As one of Scotland's most prominent development studios, Realtime Worlds is keenly aware that as the computer games industry grows the UK lags behind other countries in terms of tax incentives. (Edge Online has an excellent overview of the situation which details how UK firms pay tax on R&D while countries like Canada and France provide rebates for game developers.) The situation as it affects Realtime Worlds and other Dundee-based companies is that if corporate tax breaks aren't possible in Scotland, they may need to head to greener pastures. Even moreso if such pastures include a 5-year tax holiday, which was mentioned at last weekend's Global Irish Economic Forum in Dublin.Herald Scotland quotes Colin Macdonald, Realtime Worlds Studio Manager, as saying,"If the package on offer in Ireland was attractive we'd have to give it serious consideration. [...] Dundee is a great place to be based, one of the main hubs for computer games in Britain, but at the end of the day we've got to look after our bottom line."
EVE Online: The taxman cometh
When EVE Online developer CCP Soundwave isn't entertaining fans of internet spaceships with his wit during the EVE Alliance Tournament, he's apparently finding new ways to ... impose taxes on players? His dev blog today explains that CCP Games will tax the earnings of players in NPC corps and their reasons for introducing this taxes. This won't apply to those in EVE's player corporations or those enlisted with a militia for factional warfare. "Service guarantees citizenship and all that, so keep on trucking," he writes. (Note: For those less familiar with EVE Online, this deals entirely with in-game currency of course, InterStellar Kredits or ISK. No real world taxation is involved.)After all these years, why impose taxes on players in NPC corps? CCP Soundwave explains it all in "I Bring Gifts! (By Gifts I Mean Taxes, Sorry)". NPC corps have a few advantages over player corps in that they cannot have wars declared against them by player corporations; immunity to wardecs is perhaps a key reason some players don't move on to player corps. In addition, members of NPC corporations don't have taxes subtracted from their NPC bounties and mission rewards, which most player corporations impose.
Tiga calls UK tax support 'incoherent,' seeks national solution
We're starting to notice that Tiga, the UK's trade association for the video game industry, is sort of like the tragic figure of Cassandra of Greek mythology (and ABBA's 1981 song) -- no matter how dire the prophecy, the powers that be won't listen. The latest warning from Tiga urges the English government to stop its "incoherent" funding system, which the organization deems a "post code lottery," for game companies in the region. It's a fancy way of saying that Tiga wants tax incentives and support through a national "Games Tax Relief" program, rather than the current system, which favors certain locales over others. Tiga believes the national relief tax will create 1,400 jobs over five years and increase investment in a sector that'll likely continue its downward slide if nothing is done to support British game companies. [Image Credit]
