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News
U.K. Online Gambling Operators
Confront Tax Challenge
“Being based in the UK, from a tax competitive organizations are from 400 or more English-language
perspective, is very expensive.” So benefiting from lower tax regimes in betting websites. In these
says John Coates, chief executive other jurisdictions. circumstances, clearly we do not
officer of online gambling group Ralph Topping, chief executive have the luxury of being parochial
Bet365. He added that the company officer at William Hill, said, “We are about our future or taking a
did not currently have plans to already an international business, simplistic stance on complicated
relocate its sports betting business with significant parts of our issues.”
but that it was “very aware” what it operations in different countries, President of the Racecourse
would take to move offshore. Coates and are expanding in terms of our Owners Association in the U.K. Paul
said the company was paying gross overseas involvement. We view Dixon calculates the Treasury stands
profits tax of 15%, a racing levy, ourselves as an international to lose up to £45m a year in
non-recoverable Value Added Tax business, and not just a bookmaker taxation if major bookmakers
and corporation tax. This inevitably in the United Kingdom. relocated offshore. “If this is going
resulted in less profit. Two major “But we are also a company in an to be a great detriment to racing,
online betting operators have industry that faces enormous then the government must do
indicated they are considering a challenges, particularly in the U.K. something about it or face the
move away from the U.K. because “We face worldwide competition consequences,” he said.
Developing countries hardest
British expats ‘forced to
hit by global financial crisis
exit New Zealand’
The financial crisis that triggered World Bank forecast that in the It has been named as the best tearing their hair out as there’s
the global recession started in the developing countries growth will country for Britons seeking a new nothing they can do.”
developed countries, but it is the reach only 1.2% in 2009, compared life abroad. But the dream of living Some 20,000 skilled Britons went
developing nations that have to 7.7% in 2007. Excluding in New Zealand has turned sour for to New Zealand to work in 2008.
suffered most. While billions have economic powerhouses like China hundreds of UK expats who now They were given visas allowing them
been spent in the hope for ‘green and India, the remaining face losing their jobs and being to take jobs and apply for perm-
shoots’ in the richer economies, developing economies are expected kicked out of the country because anent residency after two years.
more is needed to avert poorer to shrink by 1.6%. One of the of the global financial crisis. But the ‘Essential Skills’ policy of
countries falling into extreme hardest hit areas is the investment Unemployment in New Zealand bringing in experts from abroad
poverty. drain, the bank observed. is at a six-year high of five per cent. appears to be falling apart.
“For a large number of countries, The bank’s figures indicate that Combined with an influx of Kiwis Last month, the New Zealand
there are no ‘green shoots’ of ever since peaking in 2007 with returning home after being made auditor general reported on bad
recovery,” UN Secretary-General $1.2 trillion, the foreign investment redundant overseas, this has decision-making in the
Ban Ki-moon said on 24 June. His in developing countries has been resulted in British workers being immigration department.
observation was part of his falling, with a total of $707 billion likely to lose out on jobs as Many British expats claim New
opening remarks to the New York- in 2008 and a probable $363 billion employers put locals first. Zealand had lured skilled foreigners
held Conference on the World this year. Less than one third of the Paula Bennett, the employment to fill gaps in the jobs market and
Financial and Economic Crisis and amount of foreign investment that minister, said more than 3,000 of add more than £3 billion a year to
Its Impact on Development. they had two years ago would in the 26,000 New Zealanders who the economy. One said: “The
“There are only fallow fields. The turn exacerbate the debt-building returned last year ended up on government now appears to be
real impact of the crisis could situation of the poorer countries, benefits. working hard to sabotage this
stretch for years,” Ban said. As the the World Bank warned. With the prospect of being lucrative source of income by
economic turmoil spread around forced to return to the UK looming, effectively kicking out staff that
the world, the developing world some British expats have accused employers badly need. These
has borne the brunt of the crisis. the New Zealand government of workers have been invited. But they
The emerging economies have enacting a ‘jobs for Kiwis’ policy. are effectively being told New
suffered from outflows of capital, One British expat said, “We are Zealand doesn’t want them any
increased borrowing costs, a seeing families who have worked more. Many have applications for
massive fall in world trade, lower here for years being effectively new or renewed permits declined,
commodity prices and decreased kicked out in two weeks. Many have even if their occupations are on the
remittances from overseas workers. existing jobs or offers of work in ‘Essential Skills’ list. Desperate
In its latest annual Global areas listed by immigration as being employers are denied permission to
Development Finance report the in dire shortage. Employers are keep skilled staff.”
July/August 2009 Investment International www.investmentinternational.com
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