Australian welfare group has called on the country’s government to change laws
surrounding online gambling in the country to ensure that taxes are paid where
bets are placed.
Australian Council of Social Services has said the Northern Territory and
Norfolk Island regions of the country are potentially being used to avoid tax
as current laws state that companies are charged in the jurisdiction where they
are based, rather than where a bet is placed.
9News, Ross Womersley, chief executive of the welfare group, said that the
current legal system means the state is missing out on tax income, calling for
the government to change laws to instead tax companies where bets are placed.
gambling corporation does not have to be incorporated or resident in a
jurisdiction, but can still use the licence of a jurisdiction like Norfolk
Island to lessen their taxes, I think we have gone beyond real business and are
talking about virtual tax havens and (legal) tax avoidance,” Womersley said.
the way the licence arrangements are made, South Australia is missing out on a
whole lot of tax income.
the gambling industry generates a high level of problems, major issues in our
community, we think that it's absolutely important that the industry meets its
social responsibilities in the form of taxation.”