Dáil Éireann Debate, Thursday - 26 September 2013
84. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised from applying a 1% deduction to winning bets including online bets as recommended in the Indecon Report on the Irish Horse Racing Industry; and if he will make a statement on the matter. [40270/13]
View answerIt was announced in Budget 2011 that the necessary arrangements are being made to ensure that bets placed on the internet by domestic punters are subject to the same level of betting duty as applies to high street betting shops. This will serve to broaden the tax base and increase betting duty receipts. The Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State. This means, for example, that a business which engages in online bookmaking and which accepts bets from people in this country will be liable for betting duty on those bets, irrespective of where that business is based. The existing betting duty (1%) will be applied to such bets. The Finance Act also provides for the taxation of Betting Exchanges under the new arrangements; however the calculation of the tax will take account of their particular business model, in other words a tax on the commission charged. In addition, excise duties are being applied to the granting and renewal of remote bookmakers’ and remote betting intermediaries’ licences.
The proposed Betting (Amendment) Bill, which was published in July will establish the regulatory framework for these licences. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill is enacted.
I am hopeful that by including the high-growth area of the betting sector the tax base from betting will be boosted significantly.
To place the tax on winnings would effectively place the liability on punters. This would, I believe, be an incentive for punters to seek out unlicensed websites, thus increasing the possibility of tax avoidance.
It should be noted that the industry is in favour of continuing to bear the tax instead of it being placed on the punter.
