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Dutch Senate Debates Online Gaming Tax Bill- Online Poker Winnings- TodayTue, Sep 9th, 2008 @ 12:00am Today, Tuesday 9 September, the Dutch Senate is set to discuss a proposed gaming taxation bill that will enable the government to tax games of chance, which they consider online poker to be, as well as games of chance provided by 'illegal' online operators, according to a report by the Gaming Intelligence Group. The bill also aims to change the method used to tax individuals who win at foreign online gaming sites. The government has come out strongly in support of the bill, which it says will facilitate enforceable taxation. It also maintains that the bill will ensure that "illegal online gaming is not given advantage over gaming in the real world". Since the state gambling monopoly holder is Holland Casino, observers infer that the bill aims to bolster decreased revenues from the state gambling monopoly from its online competition. SECOND TIME A CHARM? This will be the second time in six months that the Senate discusses the online gaming issue. In April 2008, the Senate rejected an amendment to the Dutch Betting and Gaming Act that would have given Holland Casino an exclusive license to provide online gaming on a trial basis.
The proposal was rejected for a variety of reasons, primarily the threat of EC prosecution. However, the government maintains that the proposal met its objective of preventing illegal gambling and organized crime.
"The bill to be discussed today will also contribute to this objective," reported a government spokesman. THE PROPOSED BILL The bill entails a change in the law on tax on online gaming, an adjustment of taxation methods for domestic providers of 'illegal' online gaming, as well as for individuals who win at foreign online gaming sites.
Several political parties have been involved in preparing the bill. The biggest question posed by the bill for the Senate is the morality of imposing a tax on illegal activities, and its enforceability.
An additional benefit says the Dutch government, is that providers of internet gambling will be taxed more effectively and the Ministry of Justice and the public prosecutor's office will be supported in enforcing the law.
However, the Dutch government has stressed that the proposed tax law will not be explicitly deployed to put an end to criminal offences, meaning that it will not be used as a tool to stamp out what the government considers illegal online gaming (just to collect taxes on it) and the principle of fiscal neutrality should not be affected. Read Related Articles:
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