Virtual tax revisited

For non-Southern Cross and Southern Cross members to talk about World of Warcraft

Moderator: WoW Officers

Post Reply
nucleon
Bloodsail Admiral
Bloodsail Admiral
Posts: 1144
Joined: 22 Nov 2004, 19:06
Location: Brisbane, Oztralia

Virtual tax revisited

Post by nucleon » 16 Oct 2007, 10:00

Good article summerising Tax and in-game earnings.

http://money.howstuffworks.com/virtual-tax.htm

One way the online gaming industry hopes to thwart what some consider to be the inevitable (referring to in-game tax) is through the retention of ownership rights, which most companies have established in their contracts. In most MMOG rules, the company, not the player, owns the Castle.


Now you know why Blizzard writes in the terms of use that it owns all in-game assets.

-- Craig
CoV - Soundspeed (Son/Kin Cor)
CoH - Ms Taken (Storm/NRG Def) GoldenRock (Rock/Rock Tank)
WoW - Omikron (Druid) KappaOmikron (Shaman)
Image

User avatar
Selphie
Epic!
Epic!
Posts: 1613
Joined: 26 Mar 2007, 07:04
Location: Brisbane

Re: Virtual tax revisited

Post by Selphie » 16 Oct 2007, 10:11

nucleon wrote:Good article summerising Tax and in-game earnings.

http://money.howstuffworks.com/virtual-tax.htm

One way the online gaming industry hopes to thwart what some consider to be the inevitable (referring to in-game tax) is through the retention of ownership rights, which most companies have established in their contracts. In most MMOG rules, the company, not the player, owns the Castle.


Now you know why Blizzard writes in the terms of use that it owns all in-game assets.

-- Craig
you mean.. against being taxed irl for things you earn in-game?
thats retarded, as if tax for that in the first place..
Image

nucleon
Bloodsail Admiral
Bloodsail Admiral
Posts: 1144
Joined: 22 Nov 2004, 19:06
Location: Brisbane, Oztralia

Re: Virtual tax revisited

Post by nucleon » 16 Oct 2007, 10:30

Selphee wrote:you mean.. against being taxed irl for things you earn in-game?
thats retarded, as if tax for that in the first place..


No. You are best off reading the article.

Taxing 'irl' for in-game earnings won't happen (unless you play second life). It won't happen as tax occurs when money (or assets) changes hands (changes ownership). The fact that in-game assets (gold/armour/weapons) remain property of Blizzard (as described in the terms of use), defines that all in-game assets never change hands as they are always owned by Blizzard.


Threfore as long as in-game assets are exchanged for other in-game assets - no change of ownership occurs, therefore no tax. It's only when in-game assets are exchanged for real money does a taxable event occur.

Even though the gold/armour/weapon/other item exists in your in-game backpack - you do not own it. It is merely allocated to you via game mechanics. We're talking legal definitions here.

I agree with the article - as soon as one exchanges in-game assets for real-world money - they should be taxed.


-- Craig
CoV - Soundspeed (Son/Kin Cor)
CoH - Ms Taken (Storm/NRG Def) GoldenRock (Rock/Rock Tank)
WoW - Omikron (Druid) KappaOmikron (Shaman)
Image

Vanit
Dreadlord
Dreadlord
Posts: 812
Joined: 13 Mar 2007, 16:28

Post by Vanit » 18 Oct 2007, 10:25

I thought most people knew this already. Goldfarmers justify the supposed legality of their business by claiming they're selling the time it took to collect the goods, not the goods themselves. Whether that argument holds up in court, I'd say probably not.

User avatar
Noose
Brewmaster
Brewmaster
Posts: 1269
Joined: 22 Nov 2004, 07:55

Post by Noose » 18 Oct 2007, 12:08

Vanit wrote:I thought most people knew this already. Goldfarmers justify the supposed legality of their business by claiming they're selling the time it took to collect the goods, not the goods themselves. Whether that argument holds up in court, I'd say probably not.


Hrm, might hold up a bank and try that argument if I get caught. :lol:

User avatar
Kathryne
Epic!
Epic!
Posts: 1518
Joined: 05 Jul 2005, 00:46

Post by Kathryne » 18 Oct 2007, 17:41

Vanit wrote:I thought most people knew this already.


Vanit wrote:blah
This ain't no ancient culture here mister.

User avatar
wazari
I Am Legendary
I Am Legendary
Posts: 6546
Joined: 19 Dec 2004, 11:44
Location: Melbourne

Post by wazari » 19 Oct 2007, 19:05

Noose wrote:
Vanit wrote:I thought most people knew this already. Goldfarmers justify the supposed legality of their business by claiming they're selling the time it took to collect the goods, not the goods themselves. Whether that argument holds up in court, I'd say probably not.


Hrm, might hold up a bank and try that argument if I get caught. :lol:


bank robbers sell the gold/cash they steal from banks?
wazari | irazaw | wazaro | orazaw

bnet - Wazari#6219

#1 Countrist in the world!

ǝɯ ʇou 'uʍop ǝpısdn ǝɹɐ noʎ

User avatar
Kashak
Site Admin
Site Admin
Posts: 9658
Joined: 22 Nov 2004, 12:27
Contact:

Post by Kashak » 25 Nov 2007, 11:42

wazari wrote:
Noose wrote:
Vanit wrote:I thought most people knew this already. Goldfarmers justify the supposed legality of their business by claiming they're selling the time it took to collect the goods, not the goods themselves. Whether that argument holds up in court, I'd say probably not.


Hrm, might hold up a bank and try that argument if I get caught. :lol:


bank robbers sell the gold/cash they steal from banks?


No they just exhange the time spent on planning the heist for coke and whores.
Live! Kashak PSN Kash_Surgeon
Steam Surg3on / Kashak
Old stuff: CoH - Professor Magma, WoW - Kashak, Kashuk, WAR - Kashak (Magus), Rift - Kashtekur
Bishop AKA Jackdin AKA Autekur 1979-2011. Miss you.

Post Reply