- Lotteritilsynets Gambling Filter Vs
- Lotteritilsynets Gambling Filtering
- Lotteritilsynets Gambling Filters
- Lotteritilsynets Gambling Filter App
Executive Summary
- Most taxpayers believe gambling proceeds are immune from tax, unless they receive a Form W-2G.
- Each pull of a lever or push of a button on a slot machine, hand of blackjack or spin of a roulette wheel is an individual wager that may result in gambling winnings.
- To prove gambling losses and taxable income, taxpayers are subject to rules of proof, recordkeeping, estimating and credibility.
The Problem of Gambling Losses
A Growing Problem
Educating Clients
Tax Adviser’s Responsibility
Calculating Gambling Income
Constructive Receipt
Slot Machine (In-Out) Reports
Reporting Losses
Erbs
Establishing Basis for Losses
Lotteritilsynets Gambling Filter Vs
Recordkeeping
![Lotteritilsynets Gambling Filter Lotteritilsynets Gambling Filter](/uploads/1/3/7/1/137160974/734542560.jpeg)
Taxpayer Credibility
Less-Credible Taxpayers
Credibility of the Records
The Cohan Doctrine
Strategy
Conclusion
Notes
Lotteritilsynets Gambling Filtering
Lotteritilsynets Gambling Filters
Lotteritilsynets Gambling Filter App
Legal definitions Lottery – a game with established rules where players buy tickets for a chance to win cash or other merchandise prizes. Gambling – a game or mutual bet according to established rules whose participants, seeking monetary gain, voluntarily risk losing an amount they have paid in, and where winning or losing is determined by chance, by some event, or by the result of a sport competition. | |
What they have in common
| How they differ In a lottery, players compete against other players. A lottery’s prize fund is set in advance and the lottery operator does not participate in the game. In gambling, players compete individually against the gambling operator. It is in the gambling operator’s interest to win against the players. |
Levels of thrill depend on a combination of these key factors: 1. The price to participate in a game and the size of the prize. The smaller the cost of playing a game and the bigger the prize (the amount that can be won), the more participants are drawn in (and vice versa). 2. Likelihood of winning. The greater the likelihood of winning, the more participants are drawn in (and vice versa). 3. The amount of time between when a bet is made, its outcome and the opportunity to bet again. The less time there is between when a bet is made, its outcome (won / lost) and the opportunity to bet again, i.e., the less time there is to make a rational decision on whether to continue wagering or to quit, the more participants are drawn in (and vice versa). | |
Principals for the taxation of lottery and gambling operators | |
Lottery operators What is taxed is sales revenue: | Gambling operators There are two bases of taxation: |
Example A lottery operator sells EUR 1000 worth of lottery tickets. 13% of that revenue, i.e. EUR 130, will go to good causes: EUR 50 will be paid into the state budget as a lottery tax and another EUR 80 will go to charity or sponsorships. |
Lotteries | Remote gambling | Gambling | |
Sales revenue, EUR Tax rate, % Tax amount, EUR | EUR 100 13% EUR 13 | EUR 100 0% EUR 0 | EUR 100 0% EUR 0 |
Winnings, EUR Net income (GGR), EUR Tax rate, % Tax amount, EUR | EUR 50 EUR 50 0% EUR 0 | EUR 90 EUR 10 10% EUR 1 | EUR 90 EUR 10 15% EUR 1.5 |
Total taxes, EUR Tax on revenue, % Tax on net income, % | EUR 13 13% 26% | EUR 1 1% 10% | EUR 1.5 1.5% 15% |