Gibraltar warns UK of tax plan

A BOLD warning has been issued to the UK Government about the UK consumption tax plan. The issue was raised at the recent KPMG eGaming Summit in Gibraltar. Britain is set to move forward with plans to impose a 15 per cent gaming tax which will affect UK on-line punters and gaming companies, no matter where they place their bets, the Treasury hopes to have arrangements in place by December 2014.

Gibraltar Chronicle reported: “the move will be counter-productive and, in the long run, more harmful to the UK than to the jurisdictions – such as Gibraltar, the Isle of Man and Malta – at which the measures are aimed.”

A series of gaming experts warned that the moves would damage Britain by opening the doors to an on-line unregulated black market in gambling similar to that which still operates in France. The Gaming Minister, Gilbert Licudi, who opened the Summit, claims the UK changes are unnecessary. He claims the UK market is already protected by Gibraltar’s strict licensing and supervision regime, which he claimed earlier this year is as high, or higher, than in the UK.

In his speech he referred to how the UK could be affected in the future:

“This is a political proposal and politicians, much as we  minds. That seems to be happening already on another announcement made by the UK Chancellor at last month’s budget – the proposal to cap tax relief on donations to charity.

David Cameron’s comments this week on this suggests that the UK Government is prepared to listen. We will make sure that our position on the proposed gaming transaction tax is heard and taken into account. We will make sure that they understand that what they call a fairer system of taxation would operate with disproportionate unfairness with regard to Gibraltar.

It has also been suggested to us that one of the reasons for the licensing and regulatory regime is the need to protect UK customers. Online gambling is a leisure activity that carries some risks. Some customers may exercise poor judgment and control, Some customers may seek to commit crimes against the operators.”