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Tactical Advance
solarfire

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"Star Citizen is in the news again for all the wrong reasons following disclosure of a recent loan. Multiple outlets are reporting developer Foundry 42, the subsidiary of Chris Roberts’ Cloud Imperium Games (CIG), is in financial distress and the crowd-funded game is owned by a British bank. However, a look at the actual details of the loan suggests that is not actually the case." Scott Grill

check the link for more details....

http://www.inquisitr.com/4322447/is-star-citizen-in-trouble-with-a-loan-and-owned-by-a-bank-no-not-really/

Edited by solarfire

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You can find CIG's official response here.

Basically, CIG asked the bank to provide an advance on their UK tax rebate. While I don't completely understand the situation, they say they did it because the conversion rates to pounds is rather expensive. When they finally receive their UK tax rebate they'll pay the bank back and the contract states that if they are in any way unable to pay the bank WON'T get ownership of Star Citizen.

Someone also said that they can spend more now because of that loan which could increase the money they get back from the tax rebate, so it's a win-win :P

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Basically CIG trying to save money. Instead of paying to convert a $1million or euros in to £'s. That they have to pay to do. That could be up to $50,000 just in charges. So they save them self $50,000.

But also the way the Tax work in UK they can claim the loan as a over head and pay less tax to start with because of it. And with the interest rates being so low now it could be saving them tens thousands. 

This is why they started in the UK. To get the tax Rebate. Now they are doing other things to save money. Good to see they have financial advice of people.   

 https://www.gov.uk/government/news/video-games-companies-to-begin-claiming-tax-relief 

Edited by RSLtaken

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