Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 328: To ask the Minister for Finance the annual contribution of tax from the betting industry. [30659/08]

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 329: To ask the Minister for Finance the amount of tax paid by the betting industry in the last year and the tax paid on actual bets as opposed to profits. [30660/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 328 and 329 together.

I have been informed by the Revenue Commissioners that the information furnished on tax returns does not generally require the yield from a particular sector or sub-sector of economic activity to be identified. In these circumstances the amount of tax revenues collected in respect of the activities specified in the question cannot be readily identified from the overall yield from these taxes. Accordingly, the specific information requested by the Deputy is not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records.

However, the amount of Betting Duty paid for 2007 was €36.44 million, €177,900 was paid on Bookmakers Licences and €529,720 was paid on Bookmaking Premises Duty.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 330: To ask the Minister for Finance the estimated yield from re-introducing a direct tax on betting of 10%. [30661/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that the amount of Betting Duty paid for 2007 was €36.44 million. As the rate in that year was 1 per cent, one could at first glance assume that the yield from a 10 per cent rate would be around tens times that amount.

However, such a figure would not be realised. Although the onus is currently on the industry to pay betting duty at the 1 per cent rate, it is extremely unlikely that the industry could afford to carry a ten per cent rate betting duty. The reduction in recent years from 2 per cent to 1 per cent was designed to eliminate the incentive for more and more customers to bet tax free on the internet and at the same time to eliminate tax driven competition that was damaging small local betting offices.

If the rate were to be payable by the customer, one would have to factor in the effects of a significant rise in betting duty on customer behaviour. Given that it is not feasible to tax on-line betting services provided by operations outside the State, which are taxed in the state where the operation is based, it is likely that significant numbers of bettors would turn to on-line gambling to avoid the duty. In addition such a rate would be likely to encourage the re-emergence of illegal betting.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 331: To ask the Minister for Finance if a tax can be set on online betting and on-course betting. [30662/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Betting duty is payable by the bookmaker. Therefore, were a bookmaker to establish an on-line betting operation within the State, the bookmaker would be liable to pay betting duty at the normal 1% rate.

While a tax could be set on on-course betting, the on-course levy currently stands at zero having been exempted under Section 68 of the Finance Act 2002. It was exempted in the context of the reduction in the off-course duty at that time and the importance of supporting attendances at race meetings.