8 May, 2017
“Just tax havens!” The UK rebelled at off shore
A new law abolishes the benefits of gambling halls operating from tax havens. It aims to bring 300 million pounds a year back.
Online betting companies that, thanks to their off-shore paradises, have so far managed to dodge Britain’s taxes will be hit by a new take-over that could cost the industry over $ 450 million.
According to the rules published last Friday, Britain decided to gamble away from customers and not from the place where the tax offices of the companies that offer them are registered.
In other words, it would end with the cancellation of the great benefits of those who had chosen to focus on favorable laws and tax havens and to give some justice to those who had not decided to entrust themselves with curiosity and “tax creativity.”
The new tax will start in December 2014 and will be applied to the gross margin of the companies – total bets on the awards paid – in a market estimated at over $ 2 billion.
“It is unacceptable that gambling companies can avoid UK taxes seeking refuge in tax havens. The government is taking decisive measures to ensure that this will no longer happen in the future,” said Treasury Secretary to the Treasury Sajid Javid.
“These reforms will ensure that gambling operators who have UK customers finally make a fair contribution to public finances.”
The change in British tax legislation will affect some of the industry’s largest players such as Ladbrokes, the Bwin.party group, William Hill and Betfair – all companies currently operating under Gibraltar‘s (favorable) fiscal-tax regime.
The operators are not watching
The decisions of the British government at this time seem to have had no special consequences for the operators – as Ladbrokes, Bwin.party, William Hill and Betfair shares have not reacted with particular stock market movements.
“We knew something like this could happen,” said Clive Hawkswood, executive director of the Remote Gambling Association, not surprisingly surprised by the new rules.
The government, which said it wants to confirm the 15 percent rate, estimates that the new rules will bring in £ 300 million a year in further tax revenue.
Plans to bring off-shore gambling companies under the UK tax system were already outlined in the government’s 2012 budget – even though at that time the most important detail of the matter had not been specified – the rate at which operators would be subject.
A note of disappointment, however, came from William Hill, who currently holds the largest market share in UK remote play.
In fact, some representatives of the company have explained that they might try to challenge the decisions of the British Government as these could have been taken in laws that protect competition law within the European Union.