Ireland PoC tax start date scheduled for 1 August

Ireland’s government yesterday opened the licensing process for its new Point of Consumption regime with the aim of having operators taxed on transactions with customers based inside the country by the start of August.

Following the passing of the Gambling (Amendment) Act 2015, finance minister Michael Noonan said the levy, which will see operators pay 1% on turnover, or for exchange bets 15% of commission charges, will come into force on 1 August.

And those wishing to continue or set-up business in Ireland must apply for a certificate of ‘personal fitness’ from the Irish police force, as well as a remote bookmaking licence or intermediary licence from The Office of the Revenue Commissioners.

However an application for a bookmaking licence can only be made once the personal fitness certificate has been obtained.

Operating licences will be renewable every two years at a cost of €10,000 while those found to be transacting with Irish players without the necessary permit will face a fine of up to €150,000, with repeat offenders risking a €300,000 punishment.

Both Paddy Power and BoyleSports have come out in favour of the new regime, provided it is policed sufficiently, while Betfair said it plans to obtain a licence and was prepared to “swallow” the tax charges.

The passage of the Act has been far from smooth with the government first announcing plans in 2011 but facing a number of stumbling blocks including concerns raised with the European Commission by the Maltese authorities in December.

The tax is expected to raise approximately €25m a year for the Irish Treasury.