Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

Question 74: To ask the Minister for Finance if he will consider amending the Finance Act to allow betting shops trade until 10 p.m. during the winter months. [35102/11]

Paudie Coffey (Waterford, Fine Gael)
Link to this: Individually | In context

Question 82: To ask the Minister for Finance if he intends to introduce a tax for online gambling and betting as a means of raising revenue; and if he will make a statement on the matter. [34972/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 74 and 82 together.

The proposed Betting (Amendment) Bill, which is being drafted at present, will amend the 1931 Betting Act to inter alia establish the regulatory framework for the licensing of remote bookmakers and betting exchanges, including measures to enforce the regulatory framework. The extension of the opening hours of retail betting shops over the winter period is being considered in that context. The Finance Act 2011 contains legislation that, subject to a Ministerial Commencement Order, provides for the extension of betting duty to remote bookmakers and betting exchanges. The tax changes provided for in the Finance Act can only be implemented once the Betting (Amendment) Bill, which will provide for a regulatory and licensing regime, is enacted. The Betting (Amendment) Bill 2011 is currently at an advanced stage of drafting.

It is expected that by including this high-growth area of the betting sector, particularly given the increasing prevalence of smart phones, the tax base from betting will be boosted significantly. In a full year it is expected that the tax yield could grow up to €20 million depending on the prevailing market conditions. Just as important is the positive signal this measure will convey to international betting operations that have expressed an interest in or have already invested in Ireland. A location with an appropriate licensing framework coupled with relatively low taxes provides real investment and employment opportunities in this sector.

Michael McCarthy (Cork South West, Labour)
Link to this: Individually | In context

Question 75: To ask the Minister for Finance if he will confirm, in respect of the VAT reduction on tourism-related goods and services introduced as part of the jobs initiative, the percentage of businesses nationwide which have passed on the rate reduction; the way the situation is being monitored by him; and if he will make a statement on the matter. [35106/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to end 2013. Businesses must account for VAT at the 9% rate on these specified goods and services provided by them on or after 1 July 2011. Where the goods and services are supplied to another VAT-registered business a VAT invoice must be issued, charging VAT at the new rate. However, where the supplies are to unregistered customers there is no obligation to show the VAT separately. Businesses dealing with unregistered customers are not legally obliged to reduce their (VAT-inclusive) pricing to reflect the lower VAT rate, but would be expected to do so. However, in reducing the VAT burden on activities related to the tourism industry, the introduction of the 9% VAT rate is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector. With this in mind, the VAT reduction will be kept under review and evaluated before end 2012 in order to determine its effectiveness in aiding the industry. If it is shown that the VAT reduction has little or no effect in aiding the industry then the measure is open to being reformed or abolished. In addition, checks on the correct operation of VAT, including the rates of VAT applied are integral parts of Revenue's audit and compliance programmes.