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Complaints about unequal taxation of gambling sites

20 July 2015 A complaint from the Gibraltar Betting and Gaming Association about its unfair treatment by the British tax laws will be dealt with by the Court of Justice of the European Union shortly. In an important step with regards to the protection of private providers against any exorbitant national taxation measures the complaint that was filed at the Court of the European Union for the about the legality of a UK tax, which was imposed on the overseas gambling operators. The judge of the European Court of Justice, Mr Charles has ruled in this context that the UK tax on online gambling could possibly be in conflict to the EU law with regards to the UK Finance Act 2014. He also agreed that it was correct that this matter was negotiated at the European Court of Justice.

The reforms of the eligible British tax system changed the law in such way that offshore operators would be subject to tax for the benefit of the British government. This is in addition to the taxes that they already have to pay in their home country. Through this tax the British government should be generating about £ 300,000,000 per year but it might be additional charges that may double the tax burden for the operators. The case itself dates back to October 2014 when the GBGA submited an application for a judicial review by the High Court. The GBGA claims that this is discrimination and restriction of the freedom to provide services in the EU and that it is in conflict to the laws and the Functioning of the European Union. The EU sees a clear precedent for the parameters of the tax; the individual EU governments are attuned to arbitrary taxation of independent offshore iGaming operators.

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