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Gambling -possibly belongs in taxation sorry

  • 11-10-2012 3:49am
    #1
    holdemfoldem
    Registered Users, Registered Users 2 Posts: 268 ✭✭


    Hey,

    Wondering if anyone can explain how the following situation would work.

    As an individual I don't have to pay tax on any gambling proceeds, currently that is.

    Take the following scenario, Ten of my friends agree to act as brokers for my bets ie I tell them what to bet and where using my funds not theirs (purely to get to a level of stake i need to make a good return). In return for this they take a small commission on any profits and send the remainder to me via bank transfer/ moneybookers etc.

    Can i still claim this income as gambling income and therefore not pay tax etc?
    If so what type of records would i need to keep and how would i go about ensuring my income source is filed correctly (if i even need to)?

    Thanks, as mentioned if this belongs in taxation feel free to move over mods


Comments

  • #2
    jimmy456
    Registered Users, Registered Users 2 Posts: 90 ✭✭jimmy456


    I could be mis reading this but its your funds and your bets? Why do you need the "brokers" to place the bets?

    What if the "brokers" were staking you to place bets based on your expretise and now you had to make a return to the stakee less your commission? How would the stakee/you declare that income? Surely that would be more of a tax question?


  • #3
    RT2010
    Registered Users, Registered Users 2 Posts: 133 ✭✭RT2010


    I believe that the OP uses the technique of using various "brokers" to put on bets for him because if he were to bet very large sums himself in one go then the bookies become suspicious and either refuse the bet or slash the odds. Par for the course for big stakes gamblers.


  • #4
    holdemfoldem
    Registered Users, Registered Users 2 Posts: 268 ✭✭holdemfoldem


    RT2010 wrote: »
    I believe that the OP uses the technique of using various "brokers" to put on bets for him because if he were to bet very large sums himself in one go then the bookies become suspicious and either refuse the bet or slash the odds. Par for the course for big stakes gamblers.

    Yeah, Didn't really want to go into it but let's just say certain people are not welcome additions to most bookmakers customer base.

    Anyway so from my perspective, I am still gambling ie their is no guaranteed profit/income so i should still fall under the current exemptions right? Also there is the fact that wagers are taxed a small percentage on placement but this is covered by the book currently.
    What I'm worried about is the fact that money will be coming into my bank/wallets from other people rather than companies (like if i was able to place the bets myself) so while I'm still gambling how do i prove it?


  • #5
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,611 Mod ✭✭✭✭Jim2007


    holdemfoldem wrote: »
    What I'm worried about is the fact that money will be coming into my bank/wallets from other people rather than companies (like if i was able to place the bets myself) so while I'm still gambling how do i prove it?

    You've actually got two issues here: money laundering and taxation!!!

    From a tax point of view you need to keep very detailed records of your instructions to your brokers, the outcome of each bet, the receipts you receive and the bookie's slips from the your brokers. From memory, bookies are not required to retain copies of their slips for very long, so you must make sure you have a copy of everything. The easiest way to convince the IOT that you're above board is to show them you are a great record keeper!

    On the second issue, if you start to receive regular or single large amounts from various individuals without an obvious business link, you will come to the attention of those monitoring financial transactions and you can expect to have to explain yourself to them as well... This could well turn out to be a lot more frequent than the IOT.


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