BETTING TAX

Sun (Auckland), Volume 1, Issue 31, 29 April 1927, Page 12

BETTING TAX

PROPOSALS FOR BRITAIN HELPING THE REVENUE The. Betting Duty Reform Association of London has prepared an alternative scheme to the present bets tax, which should prove interesting to sportsmen in this country. It has been evident for some time past that the estimated yield to the Treasury under the proposals of the Chancellor of the Exchequer would not be realised, and in addition much harm was being done to racing. It was with the idea of assisting the Chancellor that the Betting Duty Reform Association was formed, and for many weeks it has been working on figures received from various bookmakers and other sources, with a view to some alteration being made in the present system of taxing betting. Briefly the suggestions to be made by them to the Chancellor are: A weekly revenue stamp on all credit accounts with bookmakers, on which ninepence shall be paid by the backer and ninepence by the bookmaker. A 4d stamp on daily credit accounts, similarly shared. No tax on course bets, but a fee for course bookmakers for each day’s attendance, as follows: In Tattersalls’ 20s, in other rings 10s, outside any rings ss. The suggested scheme would yield the Treasury at least £1,500,000 a year at the very start, while costs of collection would be infinitesimal. ADVANTAGES CLAIMED The Betting Duty Reform Association claim for their scheme: A regular and dependable return to the Inland Revenue Department. The reduction of collection expenses to an absolute minimum. The assurance of a return to normal prosperity in the betting business, and the hopes of expansion in the future. The removal of the present temptation to many members of the public to resort to illegal betting. An equitable distribution of the tax which will neither spare nor cripple any interest. Each client with a weekly account would pay £2 a year tax, the bookmaker also paying a further £2, making a total of an annual £4 tax per account. The bookmaker also pays £lO Registration and £lO Entry Certificates yearly. The ready-money backer on the course is eexmpted from tax by this scheme for these reasons: (a) The effect of a tax on racecourse attendances and consequently an Entertainment Tax; (b) The difficulty and cost of proper supervision; (c) The possibilities of evasion, and the small returns yielded owing to all these causes. The Customs estimate that there are 275.000 weekly accounts. The annual yield will therefore be: From Is 6d Revenue Stamp, £1,072,500; from course bookmakers, £145,375; from book-

makers and entry certilcates, £171,000; total, £1,388,875. To this sum should be added the revenue from daily accounts bearing 4d stamps, which it is difficult to estimate with precision. A stable revenue of at least £1,500,000 a year would accrue immediately, the cost of collection being negligible. The yield from course bookmaking is thus arrived at: Tattersall’s Ring, £56,700; other rings, £70,875; outside any rings, £17.800; total for year, £145,375. The Betting Duty Reform Association submits to the Chancellor that a prosperous national betting industry, with a regular ar.d growing turnover, would be the greatest of assets to the Exchequer, which may always rely upon the wholehearted co-operation of the profession concerned.