|The Revenue Commissioners, the Irish tax office, has launched an inquiry into Betdaq’s status as a tax-free unlimited company, according to Irish newspaper the Sunday Business Post. The betting exchange, which handles 1 billion Euros annually and has 25,000 clients in Britain, Ireland and Asia, has servers located in Dublin, and should therefore, the Commission is arguing, be liable to 21% service tax on all its dealings. |
Betdaq’s profits fall into a complex, grey area of tax law and, according to the Business Post, the situation 'will probably end up in the High Court. We are talking about potentially hundreds of millions of euro, and it's a legal minefield.'
Rob Hartnett, Managing Director of Betdaq is in no doubt that his firm is legally exempt from tax liability in the country, explaining, ”We are having on-going discussions with the Irish Revenue. We are confident that it will become clear to all concerned that there is no such liability for Vat.'
The British Inland Revenue British exchequer has already accepted that transactions between Betdaq and British punters are exempt from service tax, but its Irish counterpart is expected to give the betting exchange a tougher ride. Should its challenge be upheld, Betdaq will be forced to move offshore.