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06 Nov 2006
I was amused to read at the weekend that the government wants to convince the online gambling industry to come onshore. I already knew that the government had a vague aim of trying to become an international centre for the industry, but there was also some discussion in The Observer about tax rates.
This is all quite amusing, in the sense that you have to wonder in what parallel universe a company would move from paying no tax, to paying a 30% rate. There appear to be some discussions going on, but it is practically impossible to see why any of the gambling firms would forfeit such a considerable amount of money when their competitors are unlikely to follow suit.
I may not have fully understood the tax situation for people operating out of Gibraltar - there is some talk of changes. But those ministers involved in this really must have a very funny idea of business if they think that offering people the prospect of paying hundreds of millions of pounds in tax is really attractive.
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