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Written question asked by Lord Foster of Bath (Liberal Democrat) on Monday, 25 January 2021, in the House of Lords. It was due for an answer on Monday, 8 February 2021. It was answered by Lord Agnew of Oulton (Conservative) on Monday, 8 February 2021 on behalf of the Treasury.

Gambling: Tax Avoidance

Question

To ask Her Majesty's Government what estimate they have made of the amount of corporation tax that has been avoided by online gambling companies which operate in the UK since the introduction of the Remote Gaming Duty in 2014.

Answer

Remote Gaming Duty is a point of consumption tax on gaming providers’ profits from remote gaming. There will be a liability if there is a UK person playing, regardless of where in the world the gaming provider is located. This is not linked to the Corporation Tax position.

A company is liable for UK Corporation Tax on its worldwide income and gains if it is resident in the UK for tax purposes. A non-UK tax resident company may still be liable for UK Corporation Tax if it is trading in the UK through a UK permanent establishment, such as a branch or agency. In this case the non-UK resident company would be liable for UK tax on the worldwide income and gains related to that permanent establishment.

HMRC does not generally estimate speculative amounts that could be payable if offshore companies decided to become UK tax resident.

Secondary information

Type
Written question
Reference
HL12485
Session
2019-21
Subjects
Corporation tax Gambling Excise duties Internet Tax avoidance
Contains statistics
Yes
Link
View this Written question on www.parliament.uk