Ireland - Betting Tax
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andyfuller
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- Joined: Wed Mar 25, 2009 12:23 pm
I see there has been a change in the betting tax in Ireland's budget today - any of our Irish members got any views about it, what will the impact of it be?
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Not found the details but it seems that it will be made to apply to onshore and offshore though I have read that exchanges will have some kind of different taxing system - I wouldn't be surprised if they are keen for Betfair to move more than just their telephone betting and some data centre to Ireland, could create a lot of jobs and tax revenues....
Can't find anything that lays out exactly what the new tax regime will be - seems there is a story in the Racing Post business section but I don't have a sub.
Can't find anything that lays out exactly what the new tax regime will be - seems there is a story in the Racing Post business section but I don't have a sub.
I'm in Ireland and have heard nothing about this.
I saw the article on Peters blog but seen its dated May I think. Are there any other more recent articles out there?
Even if it is true though the government wont be there for much longer. Feb '11 at the latest I'd say so not sure how much of a runner this is.
I saw the article on Peters blog but seen its dated May I think. Are there any other more recent articles out there?
Even if it is true though the government wont be there for much longer. Feb '11 at the latest I'd say so not sure how much of a runner this is.
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thehawk009
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- Joined: Thu Oct 08, 2009 10:33 am
this is an annex from the budget issued this week in ireland. will take time to implement but its working its way through the legislative process it seems.
Annex I
Applying Betting Duty to Offshore Betting
Betting Duty has to date only applied to bets placed in betting shops with bets placed by Irish punters either online or over the phone, essentially with offshore entities, falling outside the tax. The Minister signalled some time ago that this situation needed to be addressed. In addition, work underway by the Department of Justice has been progressing on a proper licensing regime which will serve to protect vulnerable people.
The Government intends to include provisions in the Finance Bill and revise the Betting Act 1931 to ensure that all bookmakers taking bets from Ireland will pay 1% betting duty on those bets in the same way that betting shops currently do. Betting Exchanges will also be subject to tax under the new arrangements but the calculation of the tax will differ from that applying to bookmakers.
The Minister is hopeful that by including the high-growth area of the betting sector, particularly given the increasing prevalence of smart phones, the tax base from betting will be boosted significantly. In a full year it is expected that the tax yield could grow up to €20 million depending on the prevailing market conditions.
Just as important is the positive signal this measure will convey to international betting operations that have expressed an interest in or have already invested in Ireland. A location with an appropriate licensing framework coupled with relatively low taxes provides real investment and employment opportunities in this sector.
The details will be contained in the Finance Bill and the proposed amendments to the Betting Act.
Annex I
Applying Betting Duty to Offshore Betting
Betting Duty has to date only applied to bets placed in betting shops with bets placed by Irish punters either online or over the phone, essentially with offshore entities, falling outside the tax. The Minister signalled some time ago that this situation needed to be addressed. In addition, work underway by the Department of Justice has been progressing on a proper licensing regime which will serve to protect vulnerable people.
The Government intends to include provisions in the Finance Bill and revise the Betting Act 1931 to ensure that all bookmakers taking bets from Ireland will pay 1% betting duty on those bets in the same way that betting shops currently do. Betting Exchanges will also be subject to tax under the new arrangements but the calculation of the tax will differ from that applying to bookmakers.
The Minister is hopeful that by including the high-growth area of the betting sector, particularly given the increasing prevalence of smart phones, the tax base from betting will be boosted significantly. In a full year it is expected that the tax yield could grow up to €20 million depending on the prevailing market conditions.
Just as important is the positive signal this measure will convey to international betting operations that have expressed an interest in or have already invested in Ireland. A location with an appropriate licensing framework coupled with relatively low taxes provides real investment and employment opportunities in this sector.
The details will be contained in the Finance Bill and the proposed amendments to the Betting Act.
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Interesting development as reported in this blog post by Stephen Maher:
http://stephenmaher.blogspot.com/2011/0 ... nline.html
http://stephenmaher.blogspot.com/2011/0 ... nline.html
I'm not sure what proportion of sports betting on Betfair is done by Irish registered users but if the Irish govenment force Betfair to pay 15% on commission earned on those users then they are likely to pass it on the rest of the users somehow. If the percentage of the Irish punters/traders is not significant then will may be able to obsorb it but I doubt that. And if other countries start introudcing similar measures then surely it will impact the commission rate and PC charge.