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Dutch Gov't Accepts Pokerstars.eu Tax Ruling

by Ulrika Lomas, Tax-News.com, Brussels

16 February 2016


The Dutch tax authority has decided not to appeal an earlier ruling that it cannot tax residents who use PokerStars.eu's online gambling service.

The authority had sought to tax Dutch residents' profits as income, arguing that the company's parent website is licensed in the Isle of Man and is therefore outside the European Union.

However, in its ruling in November, the Amsterdam Court agreed with the taxpayers that Pokerstars.eu, the site used by Dutch players since May 30, 2012, is licensed and registered in Malta (within the EU), including for tax purposes. Dutch players' profits therefore cannot be taxed by the Netherlands under EU law, the Court concluded, after looking at the agreement entered into by Dutch users of that website.

Earlier, Pokerstars had offered its services exclusively under the Pokerstars.com domain but it subsequently migrated its services for many of its European users to its .eu platform and launched separate sites for UK and Italian players to access its poker and card rooms.

The Dutch tax authority was allowed six weeks to appeal the decision before the Supreme Court but that time period has lapsed.

TAGS: Isle of Man | tax | Malta | Netherlands | law | tax authority | gambling | services | Europe

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