Tax crack down worries gambling companies in Ireland

The Irish gaming companies are finding it hard to cope with the excessive interference of authorities in the name of tax crack down. The authorities are putting pressure on them over tax and licensing non-compliance. But the gambling operators say it is all because of unclear regulatory regime.

The Revenue Commissioners, the Irish government agency that oversees taxes began a crackdown on tax and licensing non-compliance in the gaming sector and has sparked concerns among operators. According to gaming companies, there’s a lack of clear legislative framework for the industry and they are worried about the uncertainty that Dublin’s operators are facing.

“Revenue (the agency) is intent on addressing all forms of licensing non-compliance in the gaming and amusement sector,” a spokeswoman for the government’s body stated. “Any trader [operating without licence] is liable to have the gaming machines seized and be prosecuted.”

Since the crackdown started, Revenue has collected more than €1.1 million in unpaid taxes and issued 4000 new licences which generated €899,465.

However, some Dublin operators operate under Revenue-issued licences which apply to amusement machines due to a Dublin City Council directive from 1988 which bans gambling machine licenses from being issued for facilities within city limits.

Revenue’s chairman Niall Cody issued a letter to lower house member Mick Wallace explaining that, before the crackdown began, a group of casino owners made a legal submission raising concerns about the constitutionality of the present gambling law. Nonetheless, there has been little progress -or none at all- to save the Gambling Control Bill 2013, which would regulate the situation but continues to be delayed.

David Hickson, director of the Gaming and Leisure Association of Ireland, said: “At the moment our law dates back to 1956, so we need to update the legislation for a whole host of reasons. Progress towards regulation has been remarkably slow and bedevilled by delays.”

Source: FocusGamingNews