European Union Calls Out Gambling Tax Laws In Spain
The European Court of Justice has been highly involved with the gambling issue over the past several years. Many of the member countries have disregarded EU agreements with their Internet gambling laws, and now Spain has caught the eye of the ECJ.
Spain's current gambling tax laws are in violation of EU agreements, according to the ECJ. The country taxes gambling winnings that come from foreign companies, but does not tax player winnings coming from lotteries and games of chance within the country.
The law, on the surface, looks like discrimination against the foreign gaming companies. A further look, however, reveals that there are certain restrictions that have to be met to gain tax exemption for winnings from companies licensed in Spain.
The company, in order to give out tax-free winnings, must have a connection to a charity. There are three entities that are currently offering tax-free gambling winnings in Spain. The government contends that they are using a social policy to determine which companies can give the tax breaks.
The European Commission has been busy investigating Internet gambling laws in member countries over the past year. France and Italy are two countries that have recently changed their gambling laws to come into compliance with EU agreements.
The US is one of the countries that has been warned by the Commission that they must change their laws. Representative Barney Frank is leading a charge in the legislature to change the existing online gambling laws.
