Syndicate ATO court case

[Interceptor]

The ATO is chasing money from a long running high-stakes syndicate that is essentially claiming it's a hobby!

http://www.theage.com.au/national/36m-in-profits-gambling-business-just-a-hobby-ato-told-20120802-23gpf.html

[OnSong]

The ATO is chasing money from a long running high-stakes syndicate that is essentially claiming it's a hobby!

http://www.theage.com.au/national/36m-in-profits-gambling-business-just-a-hobby-ato-told-20120802-23gpf.html

Where do I sign up?

They must be avid readers of the Late Mal!

[Groover]

I dont know how the ato can expect any money from a punters club! What would happen if the club lost all its money? Do they cjhae the ato for their money back? IMO its stupid to ask for tax on their winnings...

[dedja]

True, and their turnover is only $2.5 billion ...

[Mythical Creature]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

[valleys07]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

Thats what i have come up with too MC. Still handy!!!!

[MAY-Z]

I dont know how the ato can expect any money from a punters club! What would happen if the club lost all its money? Do they cjhae the ato for their money back? IMO its stupid to ask for tax on their winnings...

this is as the ato are considering it to be a business

the things that the ato look at for determining if it is a business are

- whether the bets are conducted in an organised systematic and businesslike way
- the volume and size of the bets
- whether the betting is dependent largely on chance or a reward for skill
- whether they are betting for profit or pleasure

if it is a business they should be taxed just like any other business and could potentially use loses if they made them in the future

[Trader]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

Thats what i have come up with too MC. Still handy!!!!

Correct, handy indeed.
If you equate it to line betting at $1.90, they are hitting 54 winners to 46 losers, on the number of bets they are having, that's a very good advantage.

[scoob]

I dont know how the ato can expect any money from a punters club! What would happen if the club lost all its money? Do they cjhae the ato for their money back? IMO its stupid to ask for tax on their winnings...

this is as the ato are considering it to be a business

the things that the ato look at for determining if it is a business are

- whether the bets are conducted in an organised systematic and businesslike way
- the volume and size of the bets
- whether the betting is dependent largely on chance or a reward for skill
- whether they are betting for profit or pleasure

if it is a business they should be taxed just like any other business and could potentially use loses if they made them in the future

FFS now they want to tax our punts! That's fine as long as I call it a business and can claim against all my losses!

[overloaded]

What a joke. If your good enough to make money on the punt then you should keep it all

[Mythical Creature]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

Thats what i have come up with too MC. Still handy!!!!

Do you reckon. You wouldn't put $2.5billion in a term deposit at 2.7%, yet there is a higher chance of losing it on the punt. Seems silly to me.

[scoob]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

Thats what i have come up with too MC. Still handy!!!!

Do you reckon. You wouldn't put $2.5billion in a term deposit at 2.7%, yet there is a higher chance of losing it on the punt. Seems silly to me.

They turnover $2.5b, they don't hold $2.5b in cash

[overloaded]

Very smart operators and the corporates would hate this group.

Would be interesting to see thier account spreadsheet

[scoob]

I heard Another Grub was part of this club!

[overloaded]

probably is

I do know the ATO are after him

[mighty_tiger_79]

another case the ATO will lose and deservedly so

[dedja]

$2.453 billion dollar turnover for $66 million profit.

Thats only a return of 2.7% unless I am reading it wrong!

Thats what i have come up with too MC. Still handy!!!!

Do you reckon. You wouldn't put $2.5billion in a term deposit at 2.7%, yet there is a higher chance of losing it on the punt. Seems silly to me.

They turnover $2.5b, they don't hold $2.5b in cash

Correct, they just reinvest their winnings (or a significant portion of it).

Good way to launder money apparently ...

[Cash 123]

Very smart operators and the corporates would hate this group.

Would be interesting to see thier account spreadsheet

Would be a very big spreadsheet!!

[mighty_tiger_79]

i wanna buy shares

[Westsider]

ATO won't lose.

The guy will settle out of the courts. They already have him on record saying it's his primary income. He has (well had) 2 offices dedicated to the business.

It's pretty clear in law if the gambling is a hobby then it won't be taxed. However if it is a business and your primary (or secondary in some cases) source of income, then you should be declaring it.

The corporates loved him, they lavished him with gifts and rebates to get the business.