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Isle Of Man Responds to UK 15 percent p.o.c. tax

Tuesday December 02,2014 : ISLE OF MAN RESPONSE TO NEW BRIT TAX LAWS ON INTERNET GAMBLING
 
With introduction of the 15 percent p.o.c. tax, the island clarifies its position as a licensing jurisdiction.
 
In response to the introduction of Point of Consumption tax by the British government on Monday, the head of the Isle of Man's e-gaming regulation and licensing, Peter Greenhill, has issued a statement clarifying the island's position.
 
Greenhill says the effect of the tax on the Isle of Man online gaming sector will be minimal compared to other jurisdictions due to the fact that the vast majority of players using Isle of Man-licensed operators reside outside the UK.
 
The new UK licensing and taxing regime is targeted on internet gambling operators who wish to access the UK online punter.
 
Greenhill observes that the new laws do not force UK-facing licence holders  to set up their companies in the UK, nor does it force the processing of bets to take place on UK servers.  That means that IOM licensees can retain their current structures with all of the benefits that they bring, he claims.
 
"The legislation also requires offshore licence holders to either appoint a UK based Financial Representative who, at great expense, will take responsibility and personal liability to pay UK Her Majerty's Revenue and Customs the taxes owed, or may negotiate to pay 6 months duty in advance," Greenhill points out in underlining another advantage of IOM licensing.
 
"The positive news as far as the Isle of Man is concerned is that we have negotiated an arrangement with the UK tax authorities that UK facing operators licensed with us do not need to take on this vast expense. This represents a major saving over other jurisdictions.”



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