AS Budget 2015 looms, The Irish Field has learned that the Government’s long-running attempt to capture offshore betting tax has still not won approval from the European Union.

The Betting Amendment Bill, which allows for the collection of a 1% tax on bets placed by Irish punters over the telephone or online, has passed through the Seanad and is widely expected to be signed into law this month after a five-year gestation period. However the Department of Finance is still awaiting clearance from the EU, which could delay the legislation still further.

The Bill also legislates for an extension to the opening hours for betting shops in winter months and it is possible that this area will be dealt with separately by the Government in a bid to help struggling off-course operators who are already paying taxes.

Next Tuesday’s Budget is unlikely to mention the impending rise in the VAT rate for the equine industry, though the increase is on course to be implemented by the end of the year.

Following a ruling by the European Court of Justice last year the standard rate is set to rise from 4.8% to 9%. This will affect horse sales and training/keep fees. VAT on stud fees will rise from 4.8% to 13.5%. A proposal of how the new rates will be applied and what exceptions (derogations) can be made has been circulated to industry stakeholders over recent weeks. The Irish Field understands that there is general satisfaction throughout the industry on the issue, as the new rates leave Ireland on favourable terms compared to competitor countries.

FUND INCREASE

Fine Gael TD for Kildare South, Martin Heydon, has in recent weeks been lobbying for an increase in the Horse and Greyhound Fund for 2015 as part of next week’s Budget.

“Since its establishment in 2001, the State has, through the Horse and Greyhound Fund, provided in excess of €850 million to the horseracing and greyhound industries,” Heydon said.

“This included highs of €78.3 million in 2008 which was reduced to €68.1 million in 2009 and €59.3 million in 2010 by the previous Government. During a period of huge recession and financial pressure on State funding, particularly in the last three years, this Government has managed to maintain funding levels with minimal decreases, with the most recent allocation of €54.2 million for 2014.”

Deputy Heydon says he has spoken to the Minister for Agriculture Simon Coveney to impress on him the need for an increase in the fund this year. “Any decrease, however small, in the level of funding has a knock-on impact throughout the industries and now that our economic policies have provided a more positive outlook for future years, I believe we should have an increase in the Horse and Greyhound Fund for 2015.

“Minister Coveney acknowledges the importance of the horse and greyhound industries to the Irish economy and is working to improve the funding structures. I have consistently pressed Minister Noonan that we need to get away from a position of direct state subvention by the Horse and Greyhound Fund by raising adequate funds from betting tax.

“Extending tax to online and remote betting as we have done through the Betting Amendment Bill will see an increase in tax take but ultimately we need an increase in overall betting rates to substantially change the current position.”

There was good news for Britain’s racing industry yesterday when a legal challenge to the British Government’s plans to collect offshore betting tax was rejected by the High Court. A group of Gibraltar-based betting companies called for a judicial review of the Gambling Act which forces offshore bookmakers to obtain licences before they can take bets from British citizens.