Irish Online Tax No Problem for Paddy Power

Published Sunday, February 03, 2013 -

The way that big time companies make extra money is to hire tax lawyers that find loopholes in every jurisdiction they operate in enabling a better bottom line. Such is the case recently revealed by the Irish Independent news with Paddy Power being one of those companies that has found the loophole and is reaping the benefits.

Paddy Power runs it online betting and telephone betting services from the Isle of Man, which allows the firm to avoid having to pay a 15 per cent betting duty on its operations in the United Kingdom. It is estimated that Paddy Power saves as much as 23m euro by using this tax loophole advantage and according to the rules the process is completely legal. Ireland has a no tax policy for the online gambling industry by Irish gamblers, but that may soon come to an end with a proposed change in the tax regime in Ireland before the legislators.

Paddy Power told the Sunday Independent, they paid the government of Ireland 60m euro in taxes in 2011, explaining that his company is not against the proposed new 1 percent levy. The Paddy Power spokesperson added, "If this 1 per cent tax was in place it would have added 6m euro on to that for the Government," Paddy Power is not concerned with the new levy other than to explain that it doesn’t have a problem with the tax as long as every operator with Irish consumers pays the tax to Ireland. The offshore operators are the issue explains the Paddy Power spokesperson. The fair situation is what they are ideally looking for. "We need to create a level playing field, have any betting activity from an Irish IP address included. Unlike most bookies in the Irish market, Paddy Power has its head office here and employs almost 3,000 people."

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