Monday June 25, 2012 : STAN JAMES HEAD TO HEAD WITH UK REVENUE AND CUSTOMS?
Tax hearing relating to online Gibraltar relocation
According to This is Money.co.uk, bookmaker Stan James is facing a UK Revenue & Customs (HMRC) tribunal relating to the move of its internet and phone betting division to Gibraltar in 2000.
The HMRC reportedly claims that the move was undertaken purely to evade paying UK gambling duties and is asking to levy a tax rate on the Gibraltar business's profit at the same rate it would apply to a shareholders' personal income which is likely to be higher.
This is Money did not disclose how HMRC intends to prove this.
Relocation of UK companies is sanctioned if it can prove genuine commercial reasons for doing so, however special tax charges are levied at those deemed to have made the move to evade paying taxes.
Industry observers are questioning the UK tax authorities reasoning taking into consideration that secondary licensing is imminent and point to the fact that other prominent gaming companies such as Victor Chandler, William Hill and Ladbrokes have all moved elements of their business offshore to Gibraltar.