Tuesday 10 December 2019

Online poker players don’t have to pay tax on winnings, appeal court rules

Online Poker table with playing cards and chips

The Dutch tax office has lost its claim to levy tax over the winnings of dozens of online poker players, the AD said on Tuesday.

The tax office had gone to court demanding that players pay 29% tax on winnings earned via the Pokerstars.eu website. It argues the company is based on the Isle of Man and is not an EU country. This, the tax office says, makes players liable for tax.

The players, however, said the company is based on EU member Malta, which the court agreed with. Gamblers are not liable for income tax on winnings earned within the EU.

Lawyer Pepijn le Heux, who represented between 75 and 100 poker players told the AD some of his clients had faced tax demands of over €500,000. Those who have paid tax can use Tuesday’s ruling to claim back the cash, he said.

The tax office has six weeks to decide whether or not to appeal to the supreme court.

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