Isle Of Man Softens Tax Burdens For UK Bookmakers
Offshore gaming operators have utilized tax havens the Isle of Man in order to save UK taxes for a long time. This year saw UK bookmakers hit hard by legislation like that of the increased tax on fixed odds betting terminals and the now Point of Consumption tax. In short the POC tax decree means that unlike the past any UK operator accepting online bets from gamblers in the UK will have to pay a tax levy despite the fact that they are operating outside of the UK.
This decree is just part of the challenges UK bookmakers like William Hill and Ladbrokes will have to contend wit in 2014. As of December 01 a gambling duty of 15 percent tax on gross profit came into play for UK bookmakers. In an effort to reduce the financial impact on UK bookmakers, The Isle of Man government has taken steps which would alleviate some of the burden.
They are permitting their licensees to claim double duty relief on fees which normally would have to have been paid to the Isle of Man treasury. Operators will now be able to claim back the 15 percent gambling duty that otherwise would have had to be paid. The Isle of Man is heavily dependent on the gaming industry and there are over 56 licensed operators there which make up 13 percent of the economy. It is in the interests of the Isle of Man to ensure that these operators stay there.
Chief executive for e-Gaming development at the Isle of Man Department of Economic Development, Peter Greenhill made this clear when he acknowledged that the new tax burden put on the operators was recognized by the government and it is for this reason that they decided to introduce measures that would ease the economic burden for them despite them nor being legally obliged to do so.
Furthermore Greenhill went on to state that due to the close relationship between the UK’s HM Revenue and Customs and the Isle of Man, substantial costs would be avoided as operators would not need to appoint a fiscal representative in the UK.