Double Duty Relief balances UK Tax law in vigor.
The Isle of Man, the self-governing British Crown dependency, is offering a Double Duty Relief to the licensed land-based and mobile casino gambling operators on the island.The dependency, locked in between the islands of Great Britain and Ireland took this step following the introduction of the UK’s Place of Consumption Tax.
Although the Treasury is not legally bound to offer this relief it will permit ‘Isle of Man license holders to continue to run their operations from data centers on the Isle of Man’ said CEO for e-Gaming development with the Isle of Man Department of Economic Development, Peter Greenhill.
Place of Consumption Tax offset by Double Relief Tax
Greenhill said that as 13% of the Isle of Man’s economy is related to gambling it is only fitting that in light of the new UK tax for licensed operators, the operators get some kind of tax relief to offset this. The amount is up to a monetary maximum equivalent to the amount of gambling duty the Isle of Man’s gambling operators would have had to pay the Isle of Man’s Treasury.
This tax relief comes on the heel of the agreement made between HM Revenue and Customs at the beginning of the year.The Isle of Man-based companies would not need to appoint a UK representative to have their companies subjected to any duties introduced by the Gambling Act 2014.
The changes, affecting 56 gaming operators, which are operating under the Isle of Man gambling laws, are to take immediate effect. This will protect the gaming operators from ‘future claims under base erosion and profit shifting’ Greenhill stated.