GBGA mounts new bid to overturn PoC tax
Industry body asks for Judicial Review over 15% tax rate after recent licensing judgment gives "greater hope" of mounting a successful challenge
The Gibraltar Betting and Gambling Association (GBGA) has submitted an application for a judicial review (JR) of the UK government’s plans to introduce a 15% levy on profits derived from customers who normally reside in the UK, eGaming Review has learned.
The industry body applied for the JR late last week, shortly after learning of its unsuccessful attempt to derail Great Britain’s Point of Consumption licensing regime.
The decision to challenge the tax, which is due to come into effect on 1 December and raise around £300m in tax receipts per annum, represents something of a U-turn for the GBGA after the industry body had previously indicated it was unlikely to do so.
However speaking to eGR this morning, a spokesperson for the GBGA said “the story has changed” with the contents of the recent judgment offering the industry body “greater hope on tax”.
According to the GBGA, a challenge of the tax now represents the best way to protect consumers with increased taxation likely to lead to costs passed down to the consumer which may prompt customers to seek out better value through unregulated and untaxed operators.
The GBGA also argued the tax to be discriminatory, in breach of Article 56 of European law and a restriction of movement between European Member States, and believes its argument has been enhanced by the recent licensing judgment of Lord Justice Green.
“â¦[] case law also establishes that measures restricting the freedom to provide services between Member States may not be justified on purely economic grounds,” the judgment read.
“The precise boundaries of what is and what is not an economic justification are not writ in stone. A restriction designed to raise tax would be an economic objective and, as such, inadmissible as a justification.”
The GBGA also questioned the UK Treasury’s stated motivation for introducing the tax.
“The Treasury’s position is wrong, this is not a matter of internal taxation designed purely to raise revenues,” the GBGA said.
“We believe this means their real aim is to ensure that UK operators in this market are favoured, at the expense of law abiding and responsible operators outside of the UK.”
The GBGA has asked for an expedited hearing and is confident its case will be heard.
The recent challenge to the licensing framework saw the regime suspended for a month pending the outcome of the case.