Swedish tax authorities demand $370 million from the authors of Candy Crush Saga
By the end of February, King Studio must pay Sweden a fine of $370 million. This is reported by Seeking Alpha with reference to the Swedish Tax Agency.
It’s all about the purchase of the King Studio by Activision. According to the agency, this deal meant the actual transfer of Sweden’s non-property rights to Candy Crush Saga, Farm Heroes and other King products. Therefore, the agency taxed half of the cost of all these products. At the time of the transaction in 2016, their total value was $3.4 billion.
King’s lawyers argue that the agency’s demand runs counter to the principles of the Organization for Economic Cooperation and Development regarding intellectual property rights. But representatives of the agency said that in Sweden these principles have no legal force.
King must pay the fine by the end of February, according to Pocket Gamer.
Recall that King was founded in Sweden in 2003. Later, its head office moved to Malta. Because of this, King also had friction with the Swedish tax authorities. The agency demanded $55 million from her, deciding that the income from the studio’s games would now go to Malta.
Also on the topic:
