Ireland considers ditching turnover tax
Country to look at various tax measures including moving burden to punter and scrapping the turnover-based system
Ireland has launched a review into the country’s betting duty, which will include impact assessments on measures such as increases to tax rates, switching the tax burden to punters and moving away from a turnover-based model.
The review, which forms part of the government’s wider 2017 Tax Strategy Group process, will involve both the land-based and remote betting industries, with the latter having been brought into the tax system as part of the Betting (Amendment) Act 2015.
At present, the remote industry is taxed at 1% of turnover for traditional fixed-odds and 15% of revenues/commission for exchange betting.
The Department of Finance (DoF) will explore what a potential increase in tax rates would have on both the Exchequer’s revenues and the unlicensed market, as well as consequences for the bookmaking industry, including the remote sector.
Furthermore, the DoF has invited operators and other stakeholders to submit their views on a number of other areas of the tax framework by 19 June.
Other points include whether a turnover model on fixed-odds is an appropriate approach considering the treatment of exchanges, and the likely impact of moving the tax burden to the customer – either at the point the bet is struck or on winnings.
Speaking to EGR Intel this morning, Joe Kelly, partner and head of gaming and betting at law firm A&L Goodbody, said he hoped the review would spell the end of the ‘unfair’ turnover model.
”It is to be hoped that there will be consultation with the industry so that their business perspective will be fully taken on board,” Kelly said.
“The turnover tax has long been seen as outmoded and this could represent a real opportunity to put in place another fairer method of taxation which would also garner additional revenue for the exchequer – potentially a win-win for all concerned,” he added.
The Irish market has been keenly contested since licences became available in 2015. At the last count, there were approximately 67 remote licensees including Paddy Power Betfair, GVC, Ladbrokes Coral, BoyleSports, LeoVegas, William Hill and Sky Bet.