Response by the CIOT to the HM Customs & Excise consulation document of November 2002 on the modernisation of gambling taxes: The gross profits tax on betting - one year on. Sent to HM Customs on 23 December 2002. Introduction
The consultation document seeks views regarding the reform of general betting duty introduced by FA 2001 s6 and Sch 1 with effect from 6 October 2001.
The Chartered Institute of Taxation welcomes the opportunity to contribute to this consultation. Our comments are set out below.
The reform of general betting duty enacted in FA 2001 has been followed by a similar reform to pool betting duty in FA 2002, and an intention announced in the Pre-Budget Report to make a similar reform to bingo duty. These changes take place against the background the regulatory reform of gambling proposed in A Safe Bet for Success (DCMS, 26 March 2002) following publication of the Gambling Review Body’s report in July 2001.
The taxation of gambling has undergone many changes over the last 35 years and the legislation is sorely in need of consolidation. As further changes may be expected from the review of gambling tax regimes currently under way, this is clearly an inopportune moment to think about consolidation. However, we feel that it should be urgently considered once the dust has begun to settle.
We welcome any reform that simplifies the duties on gambling and improves their effectiveness. The ongoing review presents an opportunity to simplify the legislation and, wherever possible, reduce compliance burdens. One way of doing this is to harmonise the management provisions of the various duties so that, as far as possible, they are administered in the same manner under a common code.
We regret that, on this occasion, we are unable to provide any answers to the specific questions posed in the consultation document.
The Chartered Institute of Taxation
23 December 2002
020 7235 9381