Court decides: Tax authorities have to refund Poker players
The court of appeal in ‘s-Hertogenbosch has decided that the Tax Authorities have to refund Dutch poker players. It was incorrect to tax the profits of these players, and thus the Tax Authorities have to pay thousands of euros.
Dispute over taxes and location
The court had to deal with five cases in total. The Poker players did not agree with the fact that they had to pay a gambling tax over their profits. However, it wasn’t clear if PokerStars.eu, the site where the Poker players were active, was located in Malta or the Isle of Man. It was the key question, since Malta is located within the European Union and the Isle of Man is not. The Tax Authorities are only allowed to levy a gambling tax of 30.1 percent when the money is paid out from the outside the European Union.
Objection against gambling tax
The tax authorities said that PokerStars.eu is located in Isle of Man, whereas the Poker players believed it’s Malta. The court of appeal agreed with the Poker players, and as a result they can reclaim the gambling tax that has been paid to the Tax Authorities. At the moment there are five cases, but many more Poker players have objected against the gambling tax.
Cassation is an option
The Tax Authorities can still appeal against the judgment of the court. At the moment they’re still studying the judgement and cassation before the Supreme Court might be an option, but a decision hasn’t been made as of now. We do know that this story isn’t far from over.