High(ish) Hopes For Betting Tax Changes In Irish Budget

by Caroline Maxwell, Tax-News.com, London

05 December 2001

The Irish betting industry on Monday signalled cautious optimism regarding changes to the country's betting tax laws expected in the Finance Minister's Budget later today.

Betting tax in Ireland currently stands at 5% - certainly an improvement from the previous rate of 20%, but in the wake of the changes made by the UK Chancellor in his previous budget, not enough for the Irish bookies. Earlier this year in the United Kingdom, in return for the repatriation of some of the major players, who had fled offshore, the tax imposed on the wins of punters was scrapped in favour of a gross profits tax imposed on the bookmakers themselves.

However, although a similar abolition of the 5% tax is the ultimate goal of the Irish bookmakers, there have been indications that they would be content for the moment with a reduction to 1% or 2%, and would carry the loss themselves.

According to a report in the Irish Independent yesterday, a compromise may already have been hinted at during a recent meeting between Mr McCreevy and leading Irish bookmakers, although this has yet to be confirmed. One thing seems certain, however. If the bookies do not achieve their goals in today's budget, or at the very least see some concessions, they are likely to follow the same path as their counterparts in the UK, fleeing overseas to more favourably taxed climes.

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