Irish taxman welcomes plan for cash-strapped government

A tax turnover of 1% on internet gambling companies handling Irish bets could be passed in a bill before summer recess of parliament, reports the Irish Examiner. Companies like Paddy Power, Boyle Sports, William Hill & Ladbrokes will be among the well established companies, which are also said to be the easiest targeted betting companies, whilst a special 15 percent tax on gross profit has been devised for betting exchanges like Betdaq & Betfair.

“Some of the larger mainstream operators have welcomed the tax initiative, but are concerned about the government’s ability to create a level playing field & succeed in taxing all companies who generate revenue from Irish customers via their online offerings,” the newspaper reports.

Research commissioned by Betfair & carried out by professional services independent PricewaterhouseCoopers has estimated that the taxes proposed by the government would absorb 77 percent of the market between 2013 to 2016 & net Euro 49.8 million in tax revenues for the Irish taxman. Ladbrokes recently said that it wanted a standard 7.5 percent gross profit tax for both bookmakers & exchanges, while Betfair has expressed satisfaction with the current proposals, but would rather see the entire industry taxed on a gross profit basis.