William Hill to Fight Proposed IGambling Tax
William Hill Plc is reportedly gearing up for a legal battle with the UK Government re a proposed point of sale tax. The giant UK bookie that now has a wide range of gambling interest’s world wide would certainly be affected by this proposed tax in the UK as it has moved its operations offshore.
According to estimates 90% of companies taking play legally from UK gamblers do so from outside of the United Kingdom and subsequently the UK government or public does not reap the benefit from taxes levied. Instead places like Malta and Gibraltar as well as the Isle of Man and Guernsey who have all set up infrastructure to host gambling operations seem to be benefiting.
The UK government has proposed a 15% point of consumption tax which means that Gambling operators who take play from UK citizens will be liable for this. This tax is supposed to come into play at the end of 2014.
William Hill has according to these reports instructed their lawyers to challenge this IGambling tax as being illegal within the European Union.According to them it contravenes European law as it restricts the free movement of goods and services for tax purposes. We will probably find out how they determine this when the matter goes to court.
The Chancellor indicated that he felt the current system was unfair as it did nothing to support job creation in the United Kingdom and because of lower taxation levels in these offshore destinations it has meant that a large proportion of UK Gambling companies have relocated.
We can only agree with the Government on this issue. If companies take bets from UK gamblers then it is only right that any taxes levied should be to the benefit of the UK tax paying public.