“South Australia missing out” on tax money
An Australian welfare group claims that jurisdictions including the Northern Territory and Norfolk Island may be providing tax havens for online gaming operators. Current laws allow the companies to be taxed where they are licensed rather than where bets are placed, according to the Asia Gaming Brief.
“When a gambling corporation does not have to be incorporated or resident in a jurisdiction, but can still use the license of a jurisdiction like Norfolk Island to lessen their taxes, I think we have gone beyond real business and are talking about virtual tax havens and legal tax avoidance,” said Ross Womersley, chief executive of the South Australian Council of Social Services.
“Because of the way the license arrangements are made, South Australia is missing out on a whole lot of tax income,” Womersley. “Given that the gambling industry generates a high level of problems, major issues in our community, we think that it’s absolutely important that the industry meets its social responsibilities in the form of taxation.” Womersley has called for a “national agreement” to derive online gaming taxes will be based on where the betting occurs.
Earlier this month, the federal government revoked Norfolk Island’s power to approve wagering licenses to international operators after it discovered an online betting exchange that is linked to what CalvinAyre.com called “controversial operators.”
The website also reported that Australians are secretive about their gambling, and often keep it from their spouses. According to a survey, 4.3 percent of respondents admitted they did not tell their spouses about their
