Betfair moving to Gibraltar – tax dodgers?

[Pompete]

Where has it been stated Betfair will be contributing less to British Racing than they currently do?

As far as I’m aware Betfair’s contribution in the past has been made up of the following:

# Levy paid as a legal requirement at exactly the same rate as all other British bookmakers on profits from British based punters betting through the British Exchange.
# A voluntary Levy contribution from profits made from overseas punters betting through the Malta Exchange (from which there is no legal requirement to pay the Levy) at the same rate as the legal requirement for British based punters (less legal costs incurred from actions by the BHA, Levy board etc).

And as of now;

# The contribution to the Levy from British punters will remain the same.
# The voluntary contribution will no longer be paid to the Levy Board but will be invested directed into racing by Betfair themselves.

So, racing will receive the same net percentage of profits in the future as they have in the past – or am I wrong?

[Anonymous]

Where has it been stated Betfair will be contributing less to British Racing than they currently do?

If you read the interview with their CEO which Max linked, it’s stated that Betfair’s voluntary levy contribution is under review, and that depending on fiscal advice they may redirect that towards sponsorship.

"its existing goodwill (or lack thereof) with the industry might make sponsorship a more beneficial option than continued levy contributions … the company will continue to hold talks with the racing board before settling on the best way to go about contributing to the industry."

Now, as we know, sponsorship almost exclusively benefits the profits of the racecourses, as the money from sponsorship received goes not to boost prize funds, but direct to their own P&L accounts. In other words, British Racing will once again lose fiscal traction.

And of course the relocations to Dublin and Gibraltar will reduce taxable UK income, therefore reducing Betfair’s non-voluntary Levy payment.

They are set to contribute much less to British Racing than they currently do.

Here’s Max’s link again:
http://www.egrmagazine.com/news/882677/ … odus.thtml

[Anonymous]

So when I say it’s dictatorial system like Franco-Salazar, it really is.

At least, dear Froddo, you aren’t going to get shot or thrown into jail without

habeas corpus

for reading the RP – so count your lucky stars that you are not living under Salazar or Franco, and bless the EU who ensure that a return to Mediterranean Fascism is impossible.

[Anonymous]

So when I say it’s dictatorial system like Franco-Salazar, it really is.

At least, dear Froddo, you aren’t going to get shot or thrown into jail without

habeas corpus

for reading the RP – so count your lucky stars that you are not living under Salazar or Franco, and bless the EU who ensure that a return to Mediterranean Fascism is impossible.

If you look at it objectively, in these days of revivalism, the disciplinarian regimes had something in them, tanks-navy-air force-soldiers-ammunition.
The Brussels clowns and their cronies try to compare with the giants ? Ridiculous !

[Marginal Value]

And of course the relocations to Dublin and Gibraltar will reduce taxable UK income, therefore reducing Betfair’s non-voluntary Levy payment.

Will the taxable UK income decrease much, if it is only the file servers that relocate to Dublin, and only the gambling licence that relocates to Gibraltar? I thought that the great bulk of the 1200 staff and their business functions would be remaining in the UK. Or have I misunderstood Betfair’s statement?

[Anonymous]

Will the taxable UK income decrease much, if it is only the file servers that relocate to Dublin, and only the gambling licence that relocates to Gibraltar? I thought that the great bulk of the 1200 staff and their business functions would be remaining in the UK. Or have I misunderstood Betfair’s statement?

First paragraph:

Betfair has become the latest operator to move offshore to escape the UK’s 15% gross profits tax and will save close to £20m a year, its chief executive announced during its third quarter results this morning.

So,

£20M a year less to the UK Exchequer

. That’s the point. So far only 120 jobs (10% reduction in UK workforce) which means a lot less in National Insurance too of course. More jobs doubtless moving to Dublin and Gibraltar in due course.

[Anonymous]

A euro-wide reorganization is taking place, because betting has become multinational.
Therefore betfair has to reorganize itself too.
The question is to ensure all-round fairness and all-round profitability while this process is going on. It makes no use to fight.

If you want total prohibition, like Saudi Arabia, it’s a different matter.
If you want closed borders, it’s another different matter.

Those who want to pick a fight belong to one of a number of groups of cheaters.

Re. the betfair issue, my principal objection is why British government and betfair do not ally with one another.

It appears that current thinking of the European supremos is "no to free cross border betting", "yes to regulated betting", "no to monopolies".
In my opinion EU is a beast to be tamed. Nobody can afford to fight it or abandon it altogether.

[Author]

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