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Australia Call For New Online Gambling Tax
Monday April 11,.2016 : AUSSIE GROUP CALLS FOR P.O.C. STYLE TAXATION ON INTERNET GAMBLING
Northern Territory and Norfolk Island are being used as tax havens, claims action group.
The South Australian Council of Social Services has demanded that government change the tax laws on gambling companies offering internet betting, saying that the present system based on where a company is licensed creates the possibility of more economical jurisdictions being chosen for tax haven reasons.
The group wants to see a form of point-of-consumption taxation as has been successfully introduced in the UK for internet gambling, suggesting that taxes should be paid where the bets are laid, and that the action takes place on the servers.
At present the cheaper licenses offered by the Northern Territory and Norfolk Island provinces are favoured, but SACSA chief executive Ross Womersley says that should be changed because there is the possibility that operators are using this to avoid tax in more expensive jurisdictions.
"When a gambling corporation does not have to be incorporated or resident in a jurisdiction, but can still use the licence of a jurisdiction like Norfolk Island to lessen their taxes, I think we have gone beyond real business and are talking about virtual tax havens and (legal) tax avoidance," he said.
"Because of the way the licence arrangements are made, South Australia is missing out on a whole lot of tax income."
Womersley called for a national agreement on online gaming taxation based on where the gambling occurs, not where the company is licensed.
"Given that the gambling industry generates a high level of problems, major issues in our community, we think that it's absolutely important that the industry meets its social responsibilities in the form of taxation," he said.
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