So They Want MORE Tax?

The recent mutterings from the Minister Of Finance regarding taxing gambling 'winnings' prompted me to consider the status quo :

Forgetting the 6% Betting Tax and VAT for a moment don't they tax it pretty savagely already? Let's examine the facts :

Despite whatever any punter might care to claim very few, if any, make a sustainable income from gambling. Those who do are such an exception to the rule that it becomes uneconomical to run the infrastructure necessary to tax them. Instead most of the long term potentially taxable income accrues to the clubs and bookmakers ( in the case of racing ) and casinos or operators in the case of other gambling ventures.

The last time I looked all the above declare their gross income, deduct expenses and pay tax in varying degrees on profits.

The punter, on the other hand, earns an income, PAYS TAX ON THAT INCOME, and then voluntarily elects to wager from the disposable portion of TAXED income.

My question, therefore, is : How does the minister plan to subvert tax practise and now tax 'winnings' without allowing losses as a deduction before taxation?

To familiarise myself with how much we are already being fleeced before ANY new developments I had a look at my Interbet account. I am not very active on it as it can seldom accomodate the bets I want ( no arrogance intended ) but it makes pretty sobering reading. Without going into all the gory details here are some salient facts regarding my account since January 1st :

I am showing a profit of R 7,074 to date. Big deal! But I have already paid out the following taxes and charges on my betting activity : Betting Tax R14,925-35, VAT R592-86 and Interbet Charges : R4,234 -48.

So taxes ALREADY account for double my nett profit whilst Interbet effectively costs me R 529 pm to use in addition to my other technology costs for being connected.

Any further taxes should effectively kill off my transparent punting activities altogether or get me to seek out a reputable bucket shop!

So taxes ALREADY account for double my nett profit whilst Interbet effectively costs me R 529 pm to use in addition to my other technology costs for being connected.

Somebody, somewhere saw you coming.

The bookies never see Garrick coming Chicken...

Talking about bookies whats your price for Bookiindex Boy at Southwell this evening?

VAT in the UK 20%
PAYE and NI = 40%

UK and ITALY (part of 27 EU countries) each have 60,000,000 people.....just like RSA
UK > 20,000,000 tax payers, Italy 21,000,000 tax payers and RSA 3,200,000 tax payers.

where do you think the RSA government must get the taxes ......17,000,000 tax payers short on UK and ITALY
it is also 17,000,000 more people that have bank accounts...
banks make money from bank charges...
these 17,000,000 more, can buy cars, houses, and obtain credit cards....

In RSA 3,200,000 tax payers can buy cars, houses and obtain credit cards.....banks want your payslip...
>2,000,000 of the 3,200,000 tax payers are either on ITC or are over exposed at their respective banks..

In the UK and other EU countries they fear a 2nd dip in the economy which might put us back into a recession...
number of bonds issued by the banks on properties have dropped...
the bank swaps are at 1.9% (money they borrow to fund property bonds)...while bond rates are on average 4.9%..
hence bond rates will drop to as low as 1.9% in the UK and other EU countries to try and stimulate the economy...
you an currently get refinance on your bond 1.9% for 60% of the property value....

And in the warm RSA.....are we still around the 10%.....
how can they stimulate the economy...drop the interest rates to the same as the EU countries...1.9%
bring back the financial rand and peg it to the Euro...

until then....more taxes from less people until every one is poor...redistribution of wealth...........

Back to which came first the chicken or the egg. 17,000,000 less taxpayers mostly due to unemployement of 25.3% in the 2nd quarte of an estimated 50,000,000 peopler. (12,650,000 people unemployed) 12,650,000 barely participating in the economy. No jobs

An increase on VAT the most equitable solution, but this would probably have a greater impact on the poor and would not be looked at. Taxing 12,650,000 unemployed further increasing the rate of crime and other social ills.

Garricks betting tax is probably more than the gross annual income of a large portion of SA population. Besides the alleged pilfering of certain amounts of revenue collected at least some is being used to look after the 12,650,000 who have nothing Chicken and Egg.

I hope viewing it in this sense makes paying this tax ever so slightly better.

Talking about Tax, you seen the Brian Roux article on freeracer?

Maybe Brian Roux can give some in put here. i believe he is very knowledgeable in this area

Was that the chap who was sponsoring the journo awards?

Yip

Whats he done with all the dosh? pretty big bit change floating about somewhere