Former UK Prime Minister Gordon Brown has expressed worries about possible tax avoidance as Flutter relocates its Sky Bet subsidiary to Malta.
He has urged the Treasury Select Committee members to investigate whether online gambling companies are exploiting the UK’s tax system. This committee is already evaluating proposed changes to the taxes that betting firms pay ahead of Chancellor Rachel Reeves’ budget next week.
Brown specifically highlighted “transfer pricing, tax avoidance” and a VAT loophole that reportedly helped Sky Bet save up to £24m ($31m) in marketing expenses in 2024.
ITV News reported on Wednesday about Sky Bet’s move, which could save it tens of millions of pounds in tax annually. Tax specialist Dan Neidle noted that the company’s effective corporate tax rate would decrease from 25% in the UK to as low as 5% in Malta. The savings would be £31m ($40m) based on Sky Bet’s 2024 profits.
Liberal Democrat leader Ed Davey questioned during the Prime Minister’s Questions on Wednesday if the government plans to address gambling companies relocating their tax residence. The prime minister didn’t answer the question.
In a statement to ITV News, a spokesperson for Flutter UKI stated that the company remains one of the UK’s largest tax contributors and “will continue to be so.” They believe they comply fully with all tax laws.
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- Source: SCCGManagement.com