RGA challenges Greek turnover tax
Industry trade association submits comments to Greek government on proposed 6% turnover tax and other aspects of draft law.
Industry trade body the Remote Gambling Association (RGA) has submitted comments to the Greek government on its forthcoming licensing of remote operators, arguing its proposed 6% turnover tax is “simply not viable”.
The RGA said in a statement that although it had “broadly welcomed” the draft law, the trade body had expressed “concerns about the practicality and necessity of certain aspects of the draft legislation, as well as the compatibility of some of those with EU law.”
Chief executive Clive Hawkswood (pictured) said: “We are working with [the Greek authorities] to clarify certain issues and we hope to have further dialogue on those matters. Of fundamental importance, however, is the taxation regime that will be put into operation and the proposed 6% turnover tax is, as in France, simply not viable for operators in a highly competitive global market.”
Hawkswood revealed that the RGA had employed the Athens office of “Big Four” auditor/accountant KPMG to produce a report on the relationship between the taxation model proposed for remote gambling operators and its impact on the Greek gambling market, and had supplied findings.
“The results are clear”, said Hawkswood. “[O]nly a gross profits taxation model will provide value for consumers, a reliable source of revenue for the government and a healthy competitive environment for the industry.’
The RGA also asked for clarification from the Greek authorities on a number of other areas of the draft law, including the requirement for licensed operators to permanently establish and to locate servers in Greece, and the compulsory use of a dot.gr domain.
The tender process, specifically the limitation of online licences to between 15 and 50, has also been questioned by the RGA. Hawkswood said the trade body did not view this “as necessarily conducive to an attractive and competitive market”, and could lead to a lack of a competitive offering to Greek consumers and therefore the “continuing migration of Greek citizens to operators licensed in other jurisdictions.”