Ms Sharon Byrne:

It should. However, we do not have that return. We pay VAT on everything flat and we have no way of reclaiming it. I was highlighting the cost of racing.

On the question of whether there should be a higher charge for online betting, I represent the retail sector. In my view the online sector has got away without paying tax for a very long time. We have been employing thousands of people. We are in every little town and community in the country. We are paying newspapers in our local shops, we are sponsoring local football teams, we have bums on seats around the country. Should they be taxed the same as us? It would not be my view that they should be. There should be a differentiation but I also disagree with the taxation model that is being imposed on exchanges, which is 15% on commission. A lot of customers on exchanges pay no commission because they are just providing liquidity. That system is flawed. I know the Department of Finance is looking at that.

Senator Landy said there was no sympathy from punters. We were not looking for sympathy; we are here to try to explain how much money we pay towards racing versus what the profits are. Deputy Heydon asked how is online tax bedding in. The collection of that tax does not start until 1 August but we had some concerns with regard to the legislation. We were concerned about the personal fitness companies from all over the world who can pay a small licence fee to have a betting licence in Ireland while the Department of Justice and Equality has to verify their personal fitness credentials. They might have to go to the Caribbean to check out this company that no one has ever heard of and which is applying for an Irish online licence. The Department will have two weeks to verify their fitness credentials. We have concerns about this provision and also a concern about the identification of the country of residence of the customer placing the bet. We explained our concerns to the Department and it worked with the industry to find a solution. The only other concern we have is that it remains to be seen whether it will be collected from all countries.

Mr. Paul Tully wants to make a comment.