The taxman has been told to REFUND money to a poker player for winnings on a site based in the Isle of Man.
Officials of the Swedish Tax Agency (Skatteverket) had argued that because the Isle of Man — which is considered British territory — is EXEMPT from many E.U tax rules, it did not qualify for an exemption which says games such as poker are free from tax.
Reasoning
But a county administrative court in Östergoötland disagreed with Skatteverket’s line of reasoning and ruled that the man’s £54,000 payout should be tax-free.
The court ruled that even if an EU member state doesn’t subscribe to all EU rules, a specifically cited rule which is sufficiently precise and unconditional — such as EU gaming rules — can apply.
However, the court ruled, he is still liable for tax on winnings from a site based in Monaco which is NOT in the European Union.
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