UK based online betting firms pay a gross profits tax of 15% which has prompted other operators including Ladbrokes and William Hill to move their operations offshore. Betfair is of the opinion that there is no distinction in the way authorities view on and offshore firms and that there should be some form of incentive to remain onshore where 1000 of its 2000 staff complement work.
David Yu, Betfair chief executive, in an interview with the UK Sunday Telegraph newspaper, said "We're very happy to be licensed and to pay sensible tax but if we don't see movement we'd have to consider what's right for the business over the long term." Alongside the rest of Britain's bookmakers, Betfair has been wrangling over the levy amounting to 10% of gross profits on UK horseracing that's paid to the sport in Britain.
Yu goes on to say "We've been very proud to be a British business and I think we're one of the real UK success stories. Last year we paid about £20 million in gross tax on our profits, so we're making a significant contribution back into the UK. We've been engaged in a dialogue with the Government and what we would hope is that we can find a way for that playing field to be leveled. It might be around advertising, for example. Maybe one thing might be that you would need to be licensed in the UK and paying tax if you want to advertise in the media or do other things here in the UK."
In a separate issue Betfair and other bookmakers are wrangling over the 10% levy they pay to the UK horseracing industry, a deadline on next years levy was due yesterday (October 30, 2010).
Source: InfoPowa News