iGGBA gambling body makes recommendations
Keep the taxation low
July 9, 2004
The Interactive Gaming, Gambling and Betting Association (iGGBA)
published its recommendations on remote gambling taxation by the
UK government this week.
Although not too specific, the press release referred to a position
paper that appears to base it's calculations on an optimistic 2
percent taxation rate.
The position has been released following recent statements from
the UK Treasury on taxation of remote gambling services, and calls
for a competitive low tax regime which will encourage companies
to set up in the UK and come under the robust regulation of a UK
license.
iGGBA has prepared this document in light of its upcoming dialogue
between the Treasury and Customs and Excise over a future taxation
regime for remote gambling operators.
Andrew Tottenham, chairman of iGGBA states that "the
UK will only be able to attract foreign remote gambling business,
if its tax rates are globally competitive. More importantly it is
critical to offer UK consumers the choice of using a UK-licensed
service which comes with strong social responsibility and consumer
protection".
Other critical points in the iGGBA position paper are:
- The acceptance of GPT as a preferred form of taxation;
- A call for defining GPT and how it would be applied to remote
gambling services;
- A single rate of tax for the remote gambling license;
- The application of tax on a country-of-origin basis.
To support its position, iGGBA has collected information on the
market size and the taxation and licensing regimes of other jurisdictions.
iGGBA also responds to the Treasury's memorandum, to the joint scrutiny
committee and an estimation of the effect of a two percent GPT regime
on the movement of remote gambling companies to the UK. By highlighting
successful regulation in other jurisdictions as well as examining
errors that have been made, iGGBA believes that British decision-makers
can learn from these examples.
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