Michael Healy-Rae
Ceist:52. Deputy Michael Healy-Rae asked the Minister for Finance if he will respond to the queries raised in correspondence (details supplied); and if he will make a statement on the matter. [43595/12]
Amharc ar fhreagraWednesday, 10 October 2012
Ceisteanna (52)
Freagraí scríofa
As I indicated in my reply to the Deputy’s Question No. 40466/12 of 25 September 2012, the Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State: the existing betting duty of 1 per cent of turnover will apply to such bets. The Act also provides for the taxation of betting exchanges at a rate of 15 per cent on the commission charged by exchanges to customers. In addition, excise duties are being applied to the granting and renewal of remote bookmakers’ and remote betting intermediaries’ licences. Bringing remote operators within the betting tax net represents significant progress in creating a more level playing field in the sector. In relation to the question concerning named betting exchanges, the Deputy should be aware that the Revenue Commissioners do not comment on the tax affairs of individual taxpayers. However, I am advised by the Revenue Commissioners that currently the commission charged to customers by betting exchanges established in the State is subject to VAT at the standard rate of 23%.
The Finance Act 2011 provides for an exemption from VAT for activities subject to betting intermediary duty. Currently, bets that are subject to excise duty imposed by section 67 of the Finance Act 2002 are exempt from VAT. These provisions are compatible with Article 135(1)(i) of the VAT Directive (2006/112/EC).
The coming into operation of betting intermediary duty and the exemption from VAT are subject to Ministerial Commencement orders. The making of those orders will follow the enactment of the proposed Betting (Amendment) Bill.