Mary Upton (Dublin South Central, Labour)
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Question 80: To ask the Minister for Finance if it is technically feasible to proceed with an idea (details supplied); and if he will make a statement on the matter. [12647/09]

Mary Upton (Dublin South Central, Labour)
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Question 81: To ask the Minister for Finance his views on an idea (details supplied) from a legal perspective; and if he will make a statement on the matter. [12648/09]

Mary Upton (Dublin South Central, Labour)
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Question 86: To ask the Minister for Finance his views on an idea (details supplied); and if he will make a statement on the matter. [12646/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 80, 81 and 86 together.

Betting duty is payable by the bookmaker. If a bookmaker were to establish an on-line betting operation within the State, the bookmaker would be liable to pay betting duty. In general, however, the charge to pay duty does not apply to on-line betting because virtually all providers of such a service are based outside the State. A similar scenario occurs in the case of bets carried out by telephone. This is not unusual since these types of operations tend to locate in jurisdictions that have extremely low levels of taxation.

As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. One obvious option in this regard is to include bets placed on-line or over the telephone with companies outside the State. However, it is clear that there are very serious legal difficulties surrounding this option which my officials are exploring on an ongoing basis.

Mary Upton (Dublin South Central, Labour)
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Question 82: To ask the Minister for Finance his views on an idea (details supplied); and if he will make a statement on the matter. [12649/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Betting duty is payable by the bookmaker. If a bookmaker were to establish an on-line betting operation within the State, the bookmaker would be liable to pay betting duty. In general, however, the charge to pay duty does not apply to on-line betting because virtually all providers of such a service are based outside the State. A similar scenario occurs in the case of bets carried out by telephone. This is not unusual since these types of operations tend to locate in jurisdictions that have extremely low levels of taxation.

As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. One obvious option in this regard is to include bets placed on-line or over the telephone with companies outside the State. However, it is clear that there are very serious legal difficulties surrounding this option which my officials are exploring on an ongoing basis.

In exploring options for widening the tax base on which betting duty could be applied, my aim is to generate revenue to fund public expenditure generally, rather than to fund one specific item of expenditure. The Deputy will be aware the 2009 Budget publications announced that arrangements would end whereby the annual payment to the Horse and Greyhound Racing Fund would be automatically calculated by reference to the previous year's betting duty or the contribution to the Fund in the year 2000 adjusted for inflation.