do they pay tax?

ACEGOONER

In Response to Re: do they pay tax?:

Other countries do see poker winnings as taxable income. In USA all winnings are taxed at 30%, With a win over $3000 (?)  in a casino the tax is automatically deducted. But when an American fills out his tax return he can claim deductions on losses. The system sounds pretty unworkable and it also applies to online winnings, which is odd because online poker is illegal ! But it is only applied to American citizens. An English player cashing in Vegas has to fill in a tax form to receive an ITIN number and then gets paid in full. I still have my ITIN number (blatant brag!). When I banked some of my winnings I had to show it to prove it was not drug money, or some other money laundering. I believe some local players use this as a loophole by claiming they are playing aith a foreigners cash. Some European countries have similar systems, so maybe we should not be too smug about our situation in the UK, particularly with online poker. As many poker sites are registered offshore and not paying the full rate of tax, and with the growth of poker here, there is bound to be some civil servant reviewing the issue already.
Posted by penguin7

I wouldnt hold your breath, as 90% of poker players in the UK lose money if it was taxable losses could be offset against other income eg PAYE effectively making it a freeroll for your income tax liability. The HMRC or the exchequer would not stomach that. The UK gaming industry makes a significant contribution to the exchequers coffers in anycase regardless of those companies who are based overseas.  

penguin7

In Response to Re: do they pay tax?:

In Response to Re: do they pay tax? : I wouldnt hold your breath, as 90% of poker players in the UK lose money if it was taxable losses could be offset against other income eg PAYE effectively making it a freeroll for your income tax liability. The HMRC or the exchequer would not stomach that. The UK gaming industry makes a significant contribution to the exchequers coffers in anycase regardless of those companies who are based overseas.  
Posted by ACEGOONER

Point taken about majority of players being losers.

This is why I said the American system is unworkable. But the system is also in place in several European countries and already causing conflicts of interest. A case in point is that expats in some European countries cannot play on here now because of the tax regime iwhere they are living.

So with pressure from Brussels for tax harmonisation a change cannot be ruled out

ACEGOONER

In Response to Re: do they pay tax?:

In Response to Re: do they pay tax? : Point taken about majority of players being losers. This is why I said the American system is unworkable. But the system is also in place in several European countries and already causing conflicts of interest. A case in point is that expats in some European countries cannot play on here now because of the tax regime iwhere they are living. So with pressure from Brussels for tax harmonisation a change cannot be ruled out
Posted by penguin7

Dont want to make this political but seeing as cameron told brussels where to stick their contingency baliout fund, I cant see them dictating our tax policy.