Interesting article chaps (best not be specific?)

http://www.theaustralian.com.au/bus...x-1226405991293

Note para 4 and the last!

LG

PS If you cant read the post bc Rupert has pay-walled you out, just put the following into Google...

Gambler's tax fight 'could set precedent'

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The trick isn't finding profitable angles, it's finding ones you will bet through the ups and downs - UB

$36m gambling business just a hobby

Interesting read.

LG

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The trick isn't finding profitable angles, it's finding ones you will bet through the ups and downs - UB

Not bad, just on 2.7% POT

__________________
One Drive

"If the corporates are treating you poorly , just go elsewhere."
"If they need you , they will soon find out."
"If you need them , you will soon find out." --moeee
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ahh those TAB kickbacks are just wonderful, aren't they...

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"Now let me get this straight - Whatever I do don't bet this horse?"

I wonder if that profit was before or after the kickback.

__________________
One Drive

"If the corporates are treating you poorly , just go elsewhere."
"If they need you , they will soon find out."
"If you need them , you will soon find out." --moeee
_______________________________________________

the rebates would be the issue.

I bet the TAB's claim those as business deductions. I'm thinking the ATO can argue the rebate is assessable income, regardless of whether the operation is a gambling exercise.

exactly Raven, & so they should be taxable

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"Now let me get this straight - Whatever I do don't bet this horse?"

The computer generated ratings, nor the size of the profit would be what attracted the ATO.
Firstly, profits in the tens of millions cannot be a hobby!

Secondly there is one distinct difference between the "group" and a professional gambler. A difference that would liable them to pay tax.
You can't label a business where the house has no advantage as gambling.
They are not chasing gamblers, they are chasing investors.

A gambler pits his wits against a house edge, and if he is lucky he can outwit the house edge. Sometimes he is good enough to consistantly outwit the house edge by skill. But the house still retains the overall edge. He is betting against an edge, by being selective.

The "group" is merely investing into a pool which has forsaken it's edge via rebates aka kickbacks. It is an investment. There is no house edge. It is not gambling when the odds are always in your favour overall regardless of being selective or not. There is no house edge to outwit, therefore like any investment, tax should be paid on return on investment, it is not tax on winnings, it is tax on return on investment.

The group referred to it as a cash cow!

They can lose 5% on the winner but get rebates up to 10% on turnover, therefore, they cannot lose.

There is a distinct advantage which they have tried to put down to computer software, and it doesn't wash with the ATO when winnings of 36 million are referred to as a cash cow!

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If the tab will lose out on these guys wages because of the rebate then what is the advantage giving them the rebate.

Why do they need these guys in the pool?

__________________
One Drive

"If the corporates are treating you poorly , just go elsewhere."
"If they need you , they will soon find out."
"If you need them , you will soon find out." --moeee
_______________________________________________

It was a bad decision by the CEO.
He saw a turnover increase as an increase in share value, must have had shares and must have had a clause somewhere in his contract.
Every other business commentator said it was the nail in the coffin, including the CEO of TattsGroup who slammed them for such business practices.

__________________
RaceCensus - powerful system testing software.
Now with over 412,000 Metropolitan, Provincial and Country races!
http://www.propun.com.au/horse_raci...ng_systems.html
*RaceCensus now updated to 31/12/2024
Video overview of RaceCensus here:
http://www.youtube.com/watch?v=W821YP_b0Pg