Swedish appeal court rules poker losses deductible
Verdict could allow players to recalculate outstanding tax as court says losses can be deducted from winnings
The Swedish Court of Administrative Appeal has this week ruled that players on non-European Economic Area (EEA) online poker sites should only pay tax on net profits after deeming that losses should be deductible.
The ruling comes after Sweden’s tax authority had claimed those playing with operators based outside of the EEA should be taxed only on winnings, which resulted in instances where players were still required to pay tax despite making a net loss. The tax authority has the right to appeal.
All players using websites located in EEA jurisdictions are exempt from paying tax however the latest ruling now leaves the door open for players yet to settle tax bills stemming from non-EEA poker games to have their balance recalculated.
However, all players to have already paid taxes will be unable to make retrospective tax claims.
In 2012, Isle of Man-based Pokerstars was granted EEA status after gaining a Malta-licence in order to open a dot.eu site allowing Swedish players to use the site tax free.
And following the Court of Appeal’s ruling, players will now seek to adjust outstanding tax bills accumulated through the site pre-2012.
The recent judgement was made in relation to a case involving poker player Jakob Karlsson, who is contesting the sums of tax he owes on winnings earned across a number of non EEA poker websites since 2007.
The verdict will likely increase the appeal of non-EEA sites in Sweden with previous tax rules reportedly resulting in players leaving the country.
In other news:
– Betclic faces criminal sanctions from Belgian authorities