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Kpmg Study On Proposed Uk POC Tax

Monday September 16,2013 : RGA COMMISSIONS KPMG STUDY ON PROPOSED POC TAX
 
Not viable if higher than 10 percent, concludes study
 
The Remote Gambling Association (RGA) has revealed the conclusions of a KPMG study it commissioned on the UK Government's proposed place of consumption (POC) tax of 15 percent on gross profit.
 
The study concluded that HM Treasury's POC tax regime for online gambling "is likely to fail to achieve its aims unless the rate of gross profits tax is no higher than 10 percent and it makes allowances for companies to offset costs associated with bonuses and incentives."
 
The RGA tasked KPMG to test the economic impact of the proposed point of consumption tax on the British online gambling market under the following aspects:
 

  • analyse the economic merits of these proposals
  • consider the possible impacts of the imposition of a 15 per cent tax; and
  • recommend how an optimum percentage figure might be identified.

 
According to the KPMG report:
 
The dangers of introducing the proposed rate of 15 per cent immediately are:
 

  • Firms are unable to recover their costs and either go out of business or are forced to operate in the grey market; and / or

 

  • A large number of UK customers switch to buying gambling products from offshore duty avoiding providers because they are able to offer lower priced, more attractive, products.

 

  • If either of these come to pass, then it may be difficult to reverse these consequences with a subsequent reduction in the tax rate.

 
The Government’s proposals to maintain the current position where some player bonuses in bingo, poker and casino gaming are not tax deductible will further damage the ability of licensed and taxpaying operators, who will already be required to meet a significantly higher tax burden, to compete with those overseas operators who will continue to target the UK market without holding the requisite licences or paying tax, the report found.
 
Clive Hawkswood, Chief Executive of the RGA said today:
 
“It is vitally important that the Government does not repeat past mistakes. It needs instead to set rates of remote gaming and betting taxation that give operators a realistic chance of being competitive in what is an inherently international market.
 
"This is a challenging time for the industry and we will continue to engage with Treasury to ensure the impact of any tax changes is fully understood by the Government. The online gambling industry is a UK success story and already contributes significantly to UK Plc in terms of jobs, marketing spend and corporate taxes. We do not want to see the Government’s plans put these companies and their investments in jeopardy.



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Michael Myers is back in Halloween Slot Machine - Get ready for a blood-curdling adventure with Microgaming’s latest offering – Halloween Follow Annie, Lynda, Doctor Loomis, and our heroine Laurie as they try to survive the ultimate horror movie villain, Michael Myers.

Joe Fortune new Rewards Program - Once you sign up, you’re automatically enrolled in the rewards program – and that’s when the epic journey begins. You’ll start earning Adventure Miles immediately, and can embark on the quest of a lifetime: To get paid to play, which stays true to the rewards program’s slogan, ‘Play More Get More’.

Day 1a MPN Poker Tour Tallinn Main Event - Day 1a brought 106 entries into the €550 Main Event, with nearly as many players turning out for the last €35 super satellite into tomorrow’s Day 1b

NHL Odds: Toronto Maple Leafs vs. Washington Capitals on Tuesday - Auston Matthews and the Toronto Maple Leafs touch down in DC this Tuesday (7 PM ET on TSN) as one of the hottest teams in the NHL. They've tallied a ridiculous 26 goals through only five games played; that's more than five goals scored per game on average. They'll be up against an equally potent Washington Capitals team.

Pro League Reveals Sportradar Contract Details - The partnership between the PLC and Sportradar aims to provide a high-quality level of service to all Arabian Gulf League stakeholders in addition to making verified official data about players performances available to coaching and scouting staff and supplying match information to media outlets.

NFL Odds: Steelers Visit Undefeated Chiefs #TNF - The Kansas City Chiefs (5-0 SU and ATS) have been flawless as an NFL pick thus far. Their chances of remaining undefeated in Week 6 look good; after opening at –4.5, Kansas City is a 5-point home chalk for Sunday’s game against the Pittsburgh Steelers (3-2 SU, 2-3 ATS), beginning at 4:25 PM ET on CBS.

Mega Moolah strikes again - The jackpot was hit on a mobile device on Sunday 1 October 2017 by a UK player on Betway, this time awarding a £1,448,116.31 pay day.

2 New Slots For Microgaming Casinos - David Reynolds, Games Publisher at Microgaming, comments: “On top of our branded title game Halloween, we’re delivering two more slots this October, each bringing exciting features and a different theme.

MLS Odds: Red Bulls vs. Whitecaps - The New York Red Bulls (12W, 12L, 7T) haven’t won a match since August 15, but they’re –165 favorites this Saturday against the visiting Vancouver Whitecaps (15W, 10L, 6T), beginning at 5 PM ET. Vancouver is a +475 underdog with the draw priced at +285.

Velka Pardubicka On RacingUK - Felix de Giles flies the British flag in Sunday’s Velka Pardubicka

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