Labour To Close Offshore Operator Tax Loophole
13th April, 2010
It has been reported that operators that wish to keep access to the British online gambling market must pay the price to do so under a new Labour initiative. The price will be 10% of gross profits to be paid to the UK horse racing levy.
There is to be an effort by the party to crackdown on offshore bookmakers by clocking the current loophole which allows companies that are registered abroad to avoid paying contributions to the horseracing levy. New measures will force bookies that operate offshore to pay millions of pounds into the racing industry to tackle corruption in the sport.
This means that bookmakers could fare better under the Tory party as they have commented that the levy is outdated. The liberal democrats have said that Labour have failed to get to grips on the real issue.
Currently, only British registered companies have to pay to 10% tax. The tax funds the ancient sport with the aim of improving it. Over half of the annual prize money offered in the sport is from the levy, the pot also funds schemes and educational programmes.
The levy made a £4.5 million loss due to Ladbrokes and William Hill moving their operations abroad where in Gibraltar tax payments are 2% or less.
William Hill spokesman David Hood, said: "When you take the 15 percent tax and 10 percent levy together, that's 25 pence out of every GBP1 we win going straight out of the door," however he did add that the company does pay the 10% Levy on all horseracing bets at its land based betting shops in the UK.
The plans are to be included in the Labour party’s manifesto and will be implemented if the party are re elected on the 6th of May
The UK Secretary for Sports, Gerry Sutcliffe said: "These plans will also help protect British jobs by assisting British betting operators who to date have remained in the country and pay their fair share to racing. They will no longer face an uneven playing field."
Nic Coward, the chief executive of the British Horseracing Authority, said they would push whichever party comes into government to deliver on their pledges. "Everyone in British horseracing welcomes this firm commitment to ensure that the sport receives the fair return from the betting activity it generates," he said.
By Gina
