TaxCorporate TaxEU challenges Polish taxes on foreign winnings

EU challenges Polish taxes on foreign winnings

ECJ threatens legal action against Polish government over unfair taxes on Polish-based winners of foreign lotteries

The Polish government has been formally threatened with legal action by the
European Commission at the European Court of
Justice
(ECJ) because Poland-based winners of foreign lotteries are stung
for what Brussels regards as unfair taxes.

Currently, the cash prizes paid out by Polish lotteries are either subject to
a flat-rate tax of just 10% or exempted from tax altogether.

But anyone living in the country, which joined the EU in 2004, who strikes it
lucky in lotteries organised in other EU member states, such as the
Anglo-Franco-Spanish EuroMillions lottery, is subject to income tax rates that
start at 19% and go as high as 40%.

‘Member states are free to set their own rules on betting and gambling,’ said
EU tax and customs commissioner Lászl-Kovács. ‘But the EU treaty requires that
these rules are applied in the same way to domestic and foreign lotteries.’

Sending Warsaw a ‘reasoned opinion’ final legal warning, Kovács gave Poland
two months in which to set out how it was going to reform this discriminatory
taxation.

If the country fails to do so, it may be referred to the ECJ, which has the
legal authority to order action.

The basis of Brussels’ stance is that Poland’s discriminatory lottery
taxation is an illegal restriction of the freedom to provide services across the
EU, as guaranteed by article 49 of the EU treaty.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson