If you think that the U.S.A.'s IRS is the only one planning on imposing taxes on online game loots, think again. Other countries like Sweden are following suit. Swedes who earn tax-free money from playing World of Warcraft and Second Life would have to think twice about their activities as their government said that they were planning a clampdown.

Dag Hardysson, head of the Internet trade division of the Swedish tax authority, said that they "are not interested in ordinary gamers - 99 per cent of them play for the sake of playing...Most people play and keep their money on their game account, but if they move it out of the virtual world into the real world, then we're interested in them."

He cited a couple of examples: a WoW player who advances to a higher level and earned a virtual weapon, which he then sold to another player for real money; and a fashion designer in Second Life who sells clothes in both the real and virtual worlds. But in spite of all the strong words, Hardysson mentioned that he would not expect players to actually have to pay taxes for another two to three years.