Government: Cost of doing business exceeds earnings
Citing a history of noncompliance with gaming regulations among Class IV operators, New Zealand’s Internal Affairs Minister Peter Dunne has announced that fees for the sector could increase overall by 53.62 percent, according to Taxnews.com.
Lower compliance fees would be established for small clubs to reflect the lower cost of oversight by the department. Casinos are to be largely unaffected by the proposals, but some casinos will see a change in tax liability “depending on their size and the cost of department oversight,” the website reported.
“Regrettably levels of non-compliance with the Gambling Act in the Class IV sector (gaming machines in pubs and clubs) are still quite high,” Dunne said.
He added that authorities have identified “breaches or noncompliance with the Gambling Act about 50 percent of the time, with varying degrees of severity.”
The government justified changes in the tax structure, noting that fees have not changed since 2008, and it now costs more to regulate the gaming sector than the sector generates in revenue.
