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Online Poker Player Wins Battle Against Tax Man
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November 19 - It was yet another case of local laws contradicting the greater European Union law when one Swedish poker player won his case against the country's tax authorities.
According to the Swedish tabloid, Ostgota Correspondenten, the case began when the taxman demanded that the gambler cough up taxes on his winnings while playing online poker.
The man refused, saying that the money was won at online poker sites that were based in countries that were part of the European Union and therefore winnings were not subject to Swedish tax laws.
When the Skatteverket - the Swedish tax authorities - turned down the player's line of argument, he took the case to the county administrative court.
It was there that the residing judge ruled that the Swedish poker player was correct in his assumption that he did not have to pay taxes on winnings off a poker site that was based in the Isle of Man. This was because the Isle of Man is considered part of the European Union and the taxes on his $80,000 windfall were therefore not taxable.
However, the player's victory was only partial. The judge ruled that winnings off sites that were located in different areas in Europe were subject to taxes, because these places were not part of the Union. As a result, the player still had to pay tax on winnings from a site in Monaco.
According the European Union law, winnings from online games that include poker are exempt from taxation within the Union, and this is the law that the player based his argument on.
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